Institutions, Human Development and Economic Growth in Transition Economies

Cover......Page 1
Contents......Page 8
List of Tables......Page 12
List of Figures and Maps......Page 15
Acknowledgements......Page 17
Introduction......Page 20
Appendix A: The Countries......Page 41
Part I:  Transformation, Decline and Unstable Growth......Page 46
1.1 Introduction......Page 48
1.2 The background of transition: from the oil crises untilthe fall of the Berlin Wall......Page 49
1.3 Transformation therapies and growth strategies......Page 54
1.4 From the Washington Consensus to the Augmented Washington Consensus......Page 58
1.5 A closer comparison between Eastern and Western Europe......Page 60
1.6 Initial conditions and finishing points: are there any obstacles?......Page 66
1.7 Searching for an appropriate transformation therapy......Page 76
1.8 Institutional change, the learning process and the heritage of planning......Page 80
1.9 Final comments......Page 88
Appendix A1......Page 89
2.2 Economic slump and uneven resurgence......Page 93
2.3 The labour market and the explosion of unemployment......Page 101
2.4 The impact of EU enlargement on the transition of the CEECs......Page 109
2.5 FDI and international organisation constraints......Page 116
2.6 The transformation of the trade pattern......Page 120
2.7 Final comments......Page 123
Appendix A2......Page 125
Part II: Institutional Change and Varieties of Capitalism in Transition Economies......Page 134
3.2 Institutions and institutional change......Page 136
3.3 Models of institutional change......Page 139
3.4 Old institutional economics......Page 141
3.5 New institutional economics......Page 145
3.6 Institutions and economic development......Page 149
3.7 Transaction costs and collective action in the model of institutional change......Page 150
3.8 Final comments......Page 153
4.2 Interaction and inconsistency between formal and informal institutions: the dichotomy thesis......Page 155
4.3 The dynamics of institutional change in transition economies......Page 162
4.4 Transition economies: a sui generis evolutionary model......Page 165
4.5 The stages of the processes in transition economies......Page 167
4.6 An interpretation of institutional change in transition economies......Page 170
4.7 Final comments......Page 173
5.2 The transformation towards market institutions: EBRD indicators......Page 175
5.3 Varieties of capitalism and growth in transition economies......Page 179
5.4 Varieties of capitalism and socio-economic development......Page 189
5.5 Final comments......Page 192
Appendix A5: Factor Analysis and Other Correlations......Page 193
Part III: The Capability Approach, Social Capital and Human Development in Transition Economies......Page 198
6.1 Introduction......Page 200
6.2 Traditional theories of economic development......Page 201
6.3 New theories of economic development......Page 204
6.4 Economic development as a complex issue......Page 211
6.5 Final comments......Page 213
7.2 Social costs of transition economics......Page 214
7.3 From institutions to development through capability......Page 217
7.4 From human development to economic growth......Page 222
7.5 Growth without development in transition economies......Page 227
7.6 Country classification on the basis of HDI and GDP......Page 230
7.7 Final comments......Page 233
Appendix A7: Dealing with Endogeneity: Health Expenditure and Human Development......Page 234
8.2 Social capital, the middle class and democracy: a virtuous cycle......Page 237
8.3 Social capital and trust in transition economies......Page 241
8.4 Variable definitions......Page 244
8.5 Inequality: a negative force for the middle class and social capital......Page 251
8.6 Institutions for social capital improvements......Page 254
8.7 Bridging different approaches for a new development model......Page 256
8.8 Democracy and development......Page 263
8.9 Final comments......Page 268
Appendix A8: Political Regimes in CEECs and FSRs......Page 270
9 Conclusion......Page 273
Appendix......Page 279
Notes......Page 288
Bibliography......Page 297
Index......Page 314