Transition--The First Ten Years: Analysis and Lessons for Eastern Europe and the Former Soviet Union

Why has economic growth in some transition economies of Eastern Europe and the former Soveit Union been stronger than in others? If economic reforms bring clear benefits for countries in transition, why have some governments been so reluctant to accept them? How should policy advice offered to these countries be modified in the light of experience and today's conditions? Transition--The First Ten Years draws on the World Bank's operational experience and the extensive literature on transition to help address these questions. This report looks at the policy and institutional conditions that encourage the growth of new firms in transition economies while imposing financial discipline on the old firms inherited from the socialist past, without granting special favors to either. While emphasizing the importance of market-oriented policy reforms, the report also examines political strategies to push the reform process forward in different transition countries. This book is aimed at policymakers and think tanks in transition countries, external donors and advisors, and all those in the international development community interested in the policy and institutional challenges facing the countries of Eastern Europe and the former Soviet Union.