25 Years of Reforms in Ex-Communist Countries: Fast and Extensive Reforms Led to Higher Growth and More Political Freedom

32 Pages Posted: 5 Sep 2016

See all articles by Oleh Havrylyshyn

Oleh Havrylyshyn

International Monetary Fund (IMF) - European Department

Xiaofan Meng

George Washington University, Department of Economics, Students; Cato Institute

Marian Tupy

Cato Institute

Date Written: July 12, 2016

Abstract

The transition from socialism to the market economy produced a divide between those who advocated rapid, or “big-bang” reforms, and those who advocated a gradual approach. More than 25 years have passed since the fall of the Berlin Wall in 1989, providing ample empirical data to test those approaches. Evidence shows that early and rapid reformers by far outperformed gradual reformers, both on economic measures such as GDP per capita and on social indicators such as the United Nations Human Development Index.

Keywords: Post-Communist, Economic Reform, Economic Transition, Market Democracy

JEL Classification: P2, P5

Suggested Citation

Havrylyshyn, Oleh and Meng, Xiaofan and Tupy, Marian, 25 Years of Reforms in Ex-Communist Countries: Fast and Extensive Reforms Led to Higher Growth and More Political Freedom (July 12, 2016). Cato Institute Policy Analysis No. 795. Available at SSRN: https://ssrn.com/abstract=2833941

Oleh Havrylyshyn (Contact Author)

International Monetary Fund (IMF) - European Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Xiaofan Meng

George Washington University, Department of Economics, Students ( email )

Washington, DC 20052
United States

Cato Institute ( email )

1000 Massachusetts Avenue, N.W.
Washington, DC 20001-5403
United States

Marian Tupy

Cato Institute ( email )

1000 Massachusetts Avenue, N.W.
Washington, DC 20001-5403
United States

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