Abstract
From the very first signs of the major changes afoot in the eastern part of Europe1, it has been clear that restructuring the postcommunist economies in transition (PETs) would require, among others, the identification of a new, modernizing growth path through massive purposeful resource mobilization. At the transition’s inception, many observers posited that, with proper domestic policies, the bulk of these resources would initially originate from abroad, though public funds would in some cases be needed to lubricate these transfers. Only by erecting quickly an open foreign-exchange and trading regime, it was widely argued, could the core expectations regarding the principal purposes of the transition be met: catching up in a comparatively brief period of time with levels of living, productivity, technological sophistication, and international integration through intra-industry trade and finance characteristic of the advanced countries, chiefly in western Europe. After all, society-wide structural transformation2 policies in PETs should be buttressing a more efficient mode of production and regaining a sustainable, high pace of growth, precisely to permit catching up.
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van Brabant, J.M. (1997). Banking, Foreign Investment, Endogenous Growth and Systemic Transformation. In: Welfens, P.J.J., Wolf, H.C. (eds) Banking, International Capital Flows and Growth in Europe. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-59030-6_8
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DOI: https://doi.org/10.1007/978-3-642-59030-6_8
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