Revisiting transition reform

Guriev, SG (2018) Revisiting transition reform. In: Structural Reforms for Growth and Cohesion. Edward Elgar, pp. 7-20. ISBN 9781788971133

Abstract

Since the Great Recession, transition countries have experienced a major slowdown in convergence. In order to find new sources of growth, post-communist countries need to accelerate structural reforms. However, the public support for reforms in these countries is limited. The author shows that this is explained by the lack of inclusion and fairness of transition from plan to market. While transition has brought higher income levels on average, the benefits of growth have not been shared broadly, and not always in a meritocratic way. Going forward, market reforms should take into account inclusion and governance aspects in order to reduce the risk of reform reversals.