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- W2478358783 abstract "Following the wave of (mostly) peaceful political revolutions that started In mid-1989, the new governments in Central and Eastern Europe and Central Asia faced an immediate task to fix the ailing economies. The West, which unlike the Soviet bloc achieved prosperity and economic stability, was an obvious point of reference. That implied replacing the command economy with the markets; that is with the conditions of economic freedom. Freedom of economic contracts and fully protected private property rights were expected to change the Incentives: with rights to residual value, the profit motive — the anathema of the socialist system — was reintroduced. At the same time both price controls and state support for companies was to be removed leading to pressure on cost efficiency, including energy efficiency. Competition was to be reintroduced, replacing cosy socialist monopolies and sellers’ markets with buyers’ markets, that is exchanging planners’ sovereignty for consumers’ sovereignty. It was hoped that responding to new Incentives, the economic actors will reallocate the resources from old to new activities, the latter being consistent both with real structure of costs and with consumers’ preferences. The reallocation was to be achieved both by restructuring of surviving old firms and by emergence of new players." @default.
- W2478358783 created "2016-08-23" @default.
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- W2478358783 date "2010-01-01" @default.
- W2478358783 modified "2023-10-15" @default.
- W2478358783 title "Institutions; Institutional Reform" @default.
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- W2478358783 doi "https://doi.org/10.1057/9780230291287_4" @default.
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