The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Great Divide

  • Erik Berglöf
Reference work entry


By the end of the first decade of transition in 2000, the Great Divide was visible in almost every measure of economic performance: gross domestic product (GDP) growth, investment, government finances, growth in inequality, general institutional infrastructure, and in measures of financial development. Gradually growth has picked up and macro-stability improved in the Commonwealth of


Commitment Compensation Crowding out Fiscal responsibility Great Divide Policy reform Privatization Rule of law Transition 

JEL Classifications

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  1. Berglöf, E., and P. Bolton. 2002. The great divide and beyond – Financial architecture in transition. Journal of Economic Perspectives 16(1): 77–100.CrossRefGoogle Scholar
  2. Kaufmann, D., A. Kraay, and M. Mastruzzi. 2006. Governance matters V: Governance indicators for 1996–2005. Washington, DC: World Bank.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Erik Berglöf
    • 1
  1. 1.