Studies of Communism in Transition
2 total works
Successful transformations?
by Martin Myant, Frank Fleischer, Kurt Hornschild, Ruzena Vintrova, Karel Zeman, and Zdenek Soucek
Successful Transformations? contrasts the recent experience of economic development in Eastern Germany and the Czech Republic. It provides a comparative up-to-date account critically assessing the transition from central planning to a free market economy. The book highlights the very different paths that these two economies have taken. Eastern Germany has been absorbed almost entirely into the political and economic framework of West Germany. In contrast the Czech Republic - which is widely acclaimed to have made the speediest transition - has from the outset adopted an independent line.
The book illustrates the strengths and weaknesses of these two different paths and addresses the key question as to whether the relative success of these two economies can point to a special policy regime which might aid economic transition in other former communist countries.
Both countries have adopted 'shock therapy' aimed at the fastest possible transition but with disappointing results. Poland appears to be on the brink of permanent depression and political paralysis. Czechoslovakia is only now beginning to show the first signs of economic recovery and faces the prospect of partition. In seeking to explain these disappointing results, Dr Myant critically analyses recent economic performance and past attempts at economic reform. He shows the weaknesses in the theory behind 'shock therapy', considers the political processes that led to its adoption and analyses its impact on the economy, on relations in the workplace and on political life. The result is a provocative and enlightening view of economic reform which will be essential reading for economists and political scientists.