• Michael Bleaney
Part of the Keynes Seminars book series (KESE)


‘The Future Role of the State in Eastern Europe’ is indeed a difficult subject upon which to speculate, and I was relieved, on receiving the invitation to come here, to find that I was merely a discussant and was not required to gaze directly into the crystal ball myself. However Dr Panić has made an admirable attempt to do so. As far as I understand it he makes two main points:
  1. (i)

    The political history of Eastern Europe, not just in the communist but also in the pre-communist era, is a dismal record of authoritarianism, incompetence and corruption. For that reason there is a definite danger of ‘government failure’ in the region, with economic and other policies being pursued ineffectively and incoherently.

  2. (ii)

    In the desire to shun all vestiges of the former regime, there is a real danger of going too far, of privatising and deregulating too much. Given that these countries are some way behind the most advanced countries in their development, it may well be optimal for the state to continue to play a prominent role in promoting growth.



Budget Constraint European Nation Soft Budget Constraint Marshall Plan Export Surplus 
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© Palgrave Macmillan, a division of Macmillan Publishers Limited 1993

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  • Michael Bleaney

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