How Capitalism Was Built: The Transformation of Central and Eastern Europe, Russia, and Central Asia / Edition 1

How Capitalism Was Built: The Transformation of Central and Eastern Europe, Russia, and Central Asia / Edition 1

by Anders Aslund
     
 

Anders Aslund is known for making bold predictions that initially arouse controversy but become common wisdom a few years later. He foresaw the collapse of the Soviet Union in his book Gorbachev's Struggle for Economic Reform (1989). After Russia's financial crisis of 1998, Aslund insisted that Russia had no choice but to adjust to the world market (Building… See more details below

Overview

Anders Aslund is known for making bold predictions that initially arouse controversy but become common wisdom a few years later. He foresaw the collapse of the Soviet Union in his book Gorbachev's Struggle for Economic Reform (1989). After Russia's financial crisis of 1998, Aslund insisted that Russia had no choice but to adjust to the world market (Building Capitalism, 2002), although most observers declared the market economic experiment a failure. His new book, How Capitalism Was Built, tells the story of how all but three of twenty-one former communist countries were transformed into market economies from 1989 to 2007, but less than half of them became democracies.

About the Author:
Anders Aslund worked as an economic advisor to the Russian government, to the Ukrainian government, and to the president of the Kyrgyz Republic

Product Details

ISBN-13:
9780521683821
Publisher:
Cambridge University Press
Publication date:
09/30/2007
Edition description:
Older Edition
Pages:
372
Product dimensions:
5.98(w) x 8.98(h) x 0.71(d)

Table of Contents


List of Tables and Figures     xi
List of Abbreviations     xiii
Acknowledgments     xv
Introduction: A World Transformed     1
Overview of the Arguments of This Book     3
Communism and Its Demise     11
Real Socialism     11
Decline and Fall of Socialism     15
The Demise of Communism in Central Europe     20
The Collapse of the Soviet Union     23
Shock Therapy versus Gradualism     29
The Radical Reform Program: A Big Bang     31
Gradual Reform Programs     37
Rent Seeking: The Scourge of Transition     47
Criticism of Radical Reform after the Russian Financial Crash     53
Output: Slump and Recovery     57
Sharp Decline in Recorded Output and Varied Recovery     59
Exaggeration of the Slump     63
Radical Reform: Least Decline and Early Recovery     69
Late Reformers: Surged after 1998     75
Liberalization: The Creation of a Market Economy     82
Two Strategies of Deregulation     83
Liberalization of Foreign Trade     89
Labor Market Policy     92
Combat of Monopoly: Gas and Coal     96
A BigBang: Vital in Deregulation     101
From Hyperinflation to Financial Stability     104
Establishing National Currencies     108
Radical Fiscal Adjustment Was Key     111
Tax Policy: From Social Democratic to Liberal     116
Monetary Policy: From Loose to Strict     119
Exchange Rates: Currency Board or Free Float     123
Dramas of Financial Stabilization     127
Privatization: The Establishment of Private Property Rights     143
Differing Aims of Privatization     144
Small-Scale Privatization: If Started, Swiftly Done     154
Large-Scale Privatization: The Biggest Headache     155
Privatization of Land, Real Estate, and Housing     164
New Enterprise Development: The Ultimate Success     165
Great Achievements of Privatization     168
Vital: Speed and Legitimacy of Property Rights     178
An Inefficient Social System     182
Incomes: Differentiation and Poverty     183
Life and Health     187
Education Adjusting to Demand     194
Social Transfers and Pension Reform     197
Three Alternative Social Models     203
Democracy versus Authoritarianism     206
Democratic Breakthrough: Critical for Successful Transformation     207
An Underreform Trap     215
Renewed Democratization: Colored Revolutions     221
Parties, Electoral Rules, and Constitutions     224
How to Tame the Leviathan: Reform of the Communist State     230
Public Opinion and Ideology     232
Democracy and Democracy Aid     236
From Crime toward Law     241
An Explosion of Crime     242
Attempts at Building a Legal System     245
Corruption: The Bane of Transition     249
The Role of Oligarchs     256
Who Are the Oligarchs?     257
The Economics of Oligarchy     259
The Politics of Oligarchy     264
Complaints: A Matter of Ideology     267
A Question of Property Rights     272
Putin's Alternative: Centralized Dictatorship     276
The Impact of the Outside World     281
The Dream of Europe     282
Western Failure to Act in the East     286
Trade Policy: A Gulf between the EU and the CIS     292
International Assistance: Insufficient but Crucial     297
Conclusions: A World Transformed     305
Five Models      305
Achievements and Revelations     307
Why Certain Polices Worked and Others Did Not     311
Bibliography     315
Index     343

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