Transformations in
Business & Economics
- © Vilnius University, 2002-2005
- © Brno University of Technology, 2002-2005
- © University of Latvia, 2002-2005
Article
Institutions in Transition: from Centrally-Planned to the Market Economies
Marek Ratajczak
ABSTRACT. For over a decade, many states of Central and Eastern Europe have been undergoing a transformation of their political, social and economic systems. The author of this paper concedes that the transition process has not come to a close. These position stems largely from recognising the vital importance of institutional reforms. Such reforms have been relatively slow-paced, especially in the field of informal rules and principles. While little doubt remains that economic transition will be completed and key principles of the market economy will be adopt, it is not equally clear what place these economies will assume on the economic map of the world. The future of transition countries hinges not as much on the effectiveness of external solutions as on the ability to embrace formal and informal institutions needed to promote innovation and ensure sustainable growth.
KEYWORDS: transition economies, institutions, social capital.
JEL classification: P2, G38, J24.