Institutional Obstacles to Marketization in Post-Socialist Economies
Ex-communist countries are advised to move to a market economy, and their leaders wish to do so, but without the appropriate institutions no market economy of any significance is possible. If we knew more about our own economy, we would be in a better position to advise them. (Coase, 1992, p. 714).
KeywordsMarket Economy Information Asymmetry Socialist Economy Legal Code Market Discipline
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- 6.In Hungary, for instance, the government recently stated that, ‘It is the firm resolution of the government … to create the most important elements of a contemporary market economy … This market economy relies on entrepreneurial freedom, on individual initiatives and on a sense of mutual social responsibility’ (reported in East European Reporter, 1991). Similarly, in the Soviet Union a new ‘Law on Principles of Entrepreneurship’ was introduced (Gorbachev, 1991, p. 22) which aimed at ‘creating conditions for the broad display of economic initiative and enterprise by citizens’.Google Scholar