A New Capitalist Order: Privatization and Ideology in Russia and Eastern Europe

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Overview

After the collapse of communism in the Soviet Union and eastern Europe, more than a dozen countries undertook aggressive privatization programs. Proponents of economic reform championed such large-scale efforts as the fastest, most reliable way to make the transition from a state-run to a capitalist economy.

The idea was widely embraced, and in the span of a few years, policymakers across the region repeatedly chose an approach that distributed vast amounts of state property to the private sector essentially for free-despite the absence of any historical precedent for such a radical concept. But privatization was not a panacea. It has, instead, become increasingly synonymous with collusion, corruption, and material deprivation.

Why was privatization so popular in the first place, and what went wrong? In answering this question, Hillary Appel breaks with mainstream empirical studies of postcommunist privatization.

By analyzing the design and development of programs in Russia, the Czech Republic, and across eastern Europe, Appel demonstrates how the transformation of property rights in these countries was first and foremost an ideologically driven process. Looking beyond simple economic calculations or pressure from the international community, she argues that privatization was part and parcel of the foundation of the postcommunist state.

A New Capitalist Order reveals that privatization was designed and implemented by pro-market reformers not only to distribute gains and losses to powerful supporters, but also to advance a decidedly Western, liberal vision of the new postcommunist state. Moreover, specific ideologies-such as anticommunism, liberalism, or nationalism, to name but a few-profoundly influenced the legitimacy, the power, and even the material preferences of key economic actors and groups within the privatization process.

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Editorial Reviews

From the Publisher
"A valuable analysis. Surprising and innovating. Appel’s study of the role of ideology in mass privatization provides a crucial launching point for future debate.”
—Comparative Politics

"Hillary Appel has written a gem . . . Her writing is concise, lucid and well structured to prove her point."
—Comparative Economic Studies

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Product Details

  • ISBN-13: 9780822958550
  • Publisher: University of Pittsburgh Press
  • Publication date: 12/28/2004
  • Series: Pitt Series in Russian and East European Studies
  • Edition description: New Edition
  • Pages: 248
  • Product dimensions: 6.00 (w) x 9.25 (h) x 0.60 (d)

Meet the Author

Hilary Appel, an assistant professor of government at Claremont McKenna College, has published widely on economic and political change in central and eastern Europe and Russia.

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Table of Contents

Pt. I Bringing ideology back in
1 The ideological determinants of post-communist economic reform 3
2 The international dimension of post-communist privatization 22
Pt. II Probing the Czech and Russian cases
3 The origins and design of Czech large-scale privatization 39
4 The origins and design of Russian large-scale privatization 71
Pt. III Elaborating the theoretical framework
5 The beliefs of leaders and the content of reform 109
6 Power, interests, and the ideological context 127
7 The ideological foundations of building compliance 157
8 The ideological fit and the cost of compliance 172
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