Abstract
The end of the communist era brought much optimism over the growth possibilities of the economies that are now referred to as the transition countries. An inefficient system, rife with distortions and without incentives, was to be replaced by the market. Privatization, liberalization, and decentralization would bring unprecedented prosperity. To be sure, there were some worries about a short transition recession. But the only real issue was how best to secure the transition.
This paper was presented at the 2004 American Economics Association meetings at San Diego and at the conference ‘Comparative Transitions: A Critical Review’ at London Business School (11–12 June 2004). We would like to thank Karla Hoff, Charles Himmelberg, Rajeev Dehejia and participants from both conferences for helpful comments, and Giselle Guzman for her research assistance. However, any error remaining is our responsibility. The views expressed in this paper are ours and do not reflect those of the Central Bank of Chile.
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© 2007 Sergio Godoy and Joseph E. Stiglitz
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Godoy, S., Stiglitz, J.E. (2007). Growth, Initial Conditions, Law and Speed of Privatization in Transition Countries: 11 Years Later. In: Estrin, S., Kolodko, G.W., Uvalic, M. (eds) Transition and Beyond. Studies in Economic Transition. Palgrave Macmillan, London. https://doi.org/10.1057/9780230590328_5
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