1st Edition

Alternative Political Economy Models of Transition The Russian and East European Perspective

Edited By John Marangos Copyright 2009
    330 Pages
    by Routledge

    330 Pages
    by Routledge

    The collapse of centrally administered socialism in Russia and Eastern Europe resulted in what is commonly referred to as the transition problem: the transformation from a centrally administered socialist economic system to one that is market-based. Economic science has been faced with the challenge of developing an appropriate body of analysis, advice, and direction to help other nations that may be undergoing this process. In this volume, John Marangos adopts a political economy approach that yields alternative models of transition.

    The volume develops transition models from what Marangos defines as the primary elements of six variables: (1) economic analysis; (2) definitions of the Good Society; (3) speed of transition; (4) political structure; (5) ideological structure; and (6) initial conditions. The models developed include: the shock therapy model, the neoclassical gradualist model of transition, the post Keynesian model, the pluralistic market, the socialist model, and the non-pluralistic market socialist model. After identifying the primary elements of each transition model, Marangos considers the elements of each model with respect to the desirable reforms.

    An essential element of the transition process is not only to identify the necessary reforms but also a sequence in which the reforms should be introduced. For each transition model developed in this book, a set of primary and secondary elements were provided in conjunction with a sequence of reforms. Analyzing the transition problem from a political economy perspective, Marangos shows that it is possible to have inconsistencies within each transition model and between transition models yet be able to identify the potential for implementation and maintenance of necessary reforms each model recommends. This volume contributes to the understanding of the process of transition, with the objective of identifying an optimal model of transition.

    List of Figures and Tables
    Foreword
    Acknowledgements
    Introduction to the Transaction Edition

    PART I: Comparative Models of Transition
    Chapter 1 The Collapse of the Stalinist Economic System
    Chapter 2 The Analytical Framework
    Chapter 3 The Cost of Transition

    PART II: Case Studies in Transition Economies
    Chapter 4 The Shock Therapy Model of Transition
    Chapter 5 The Neoclassical Gradualist Model of Transition
    Preventive Therapy
    Chapter 6 The Post Keynesian Model of Transition:
    Developing a Civilized Society
    Chapter 7 The Pluralistic Market Socialist Model of Transition
    Chapter 8 The Non-Pluralistic Model of Market Socialism:
    The Chinese Approach

    PART III: Conclusions
    Chapter 9 Was There an Optimal Model of Transition?
    Appendix
    Bibliography
    Index

    Biography

    John Marangos is associate professor in the department of economics at Colorado State University. He is the editor of the Forum of Social Economics and section editor of International Economics and Development Studies for the Global Business and Economic Review. He is also a member of the editorial board of the Journal of Economic Issues.