Hardback
Creating Capitalism
Transitions and Growth in Post-Soviet Europe
9781840647334 Edward Elgar Publishing
Employing historical analysis and building on growth theory and modern political economy, Dillon and Wykoff explain Soviet disintegration and analyze efforts to create capitalism in newly independent states. They show how five fundamental economic reforms generate growth, and use an original model to test the connections between reforms, elections and economic performance.
The authors examine the progress of six countries (Bulgaria, Czech Republic, Estonia, Hungary, Russia and Slovakia) in terms of each country’s history and its successful application of the five reforms. Anyone interested in how capitalism works and why pro-market reforms encounter resistance in spite of their potential for generating higher living standards will find this book essential reading.
The authors examine the progress of six countries (Bulgaria, Czech Republic, Estonia, Hungary, Russia and Slovakia) in terms of each country’s history and its successful application of the five reforms. Anyone interested in how capitalism works and why pro-market reforms encounter resistance in spite of their potential for generating higher living standards will find this book essential reading.
More Information
Critical Acclaim
Contents
More Information
Employing historical analysis and building on growth theory and modern political economy, Dillon and Wykoff explain Soviet disintegration and analyze efforts to create capitalism in newly independent states. They show how five fundamental economic reforms generate growth, and use an original model to test the connections between reforms, elections and economic performance.
The authors examine the progress of six countries (Bulgaria, Czech Republic, Estonia, Hungary, Russia and Slovakia) in terms of each country’s history and its successful application of the five reforms. Anyone interested in how capitalism works and why pro-market reforms encounter resistance in spite of their potential for generating higher living standards will find this book essential reading.
The authors examine the progress of six countries (Bulgaria, Czech Republic, Estonia, Hungary, Russia and Slovakia) in terms of each country’s history and its successful application of the five reforms. Anyone interested in how capitalism works and why pro-market reforms encounter resistance in spite of their potential for generating higher living standards will find this book essential reading.
Critical Acclaim
‘The book’s focus is on select major background forces that influence (either constructively or otherwise) the reform policies being adopted by decision makers at a given phase of an economy’s reform path. Empirical verification of the relationship between non economic variables and the implementation of select economic policies and their resulting consequences constitutes a valuable contribution to the fields of economic research. Considering the scope of the authors’ research focus, the cogent materials are succinctly presented in a readable fashion that will be accessible to students and scholars in the field of systematic transformation. . . . This volume will be of interest to students and scholars interested in the field of economic restructuring and transitional economics.’
– Raphael Shen, S.J., Slavic Review
‘This is an excellent analysis of the post-Soviet transition from central planning to a market economy. The book contains an attractive combination of theoretical, institutional and country-specific information. It constitutes a superb source of easily accessible information for advanced undergraduate and graduate students, as well as the general public.’
– Jan Svejnar, University of Michigan, Ann Arbor, US
‘The authors show why markets matter, and, yet, why transition is problematic. They ably use theory to guide discussion and make adroit use of data to substantiate their arguments. This book is a must read for anyone interested in the world-wide trend towards democratic capitalism.’
– M. Ishaq Nadiri, New York University, US
‘Doing what has to be done – transitioning from communism to capitalism – presents enormous opportunities as well as a Pandora’s box of pitfalls. This well-documented and solidly reasoned book by economists Patricia Dillon and Frank Wykoff, presents a compelling synthesis, charting the progress of social transformation in the countries of Eastern Europe and drawing crucial lessons painfully gained.’
– Thomas W. Hazlett, Manhattan Institute, Washington, DC, US
‘In a highly apt analysis of a unique period of political collapse and economic bankruptcy of communism in Central and East Europe, Dillon and Wykoff, both excellent economists, employ successfully public choice theory in their perceptive description of the search for a new economic and social order. This thorough examination of the transition process from command-economy-ruled totalitarian societies to free societies based on market economy, with its careful assessment of the economic and social foundations of Hungarian "Goulash communism", Russian "Empire on clay feet" or Czecho-Slovak "Velvet divorce", will help the American reader understand why it is futile to believe in the existence of a universal model of all post-communist societies.’
– Jiri Schwarz, Liberalni Institut, Czech Republic
‘Dillon and Wykoff present a masterly synthesis of data and theory. All future discussion of the post-communist transitions will need to be built on their book.’
– Bernard Saffran, Swarthmore College, US
‘When the Iron Curtain lifted on Eastern Europe, Frank Wykoff was one of the first Western economists selected to teach government officials, administrators, teachers, journalists and others about markets, and about the challenges of transition. Now after much reflection, based on real experience, interviews, and careful research, he and Patricia Dillon have laid out a masterly blueprint on the dynamics of institution building and economic reform. The US State Department will want to give copies away around the world.’
– Gary M. Walton, University of California, US
‘When Marx predicted the withering away of state socialism, he never figured on the 1989 implosion. The transitions that followed have traveled bumpy and highly divergent roads. Dillon and Wykoff’s guide is about the best of the current set of economic Michelins; Creating Capitalism explores the paths to successful market systems and provides clear warnings about popular ways to run off the road.’
– Thomas Borcherding, Claremont Graduate University, US
– Raphael Shen, S.J., Slavic Review
‘This is an excellent analysis of the post-Soviet transition from central planning to a market economy. The book contains an attractive combination of theoretical, institutional and country-specific information. It constitutes a superb source of easily accessible information for advanced undergraduate and graduate students, as well as the general public.’
– Jan Svejnar, University of Michigan, Ann Arbor, US
‘The authors show why markets matter, and, yet, why transition is problematic. They ably use theory to guide discussion and make adroit use of data to substantiate their arguments. This book is a must read for anyone interested in the world-wide trend towards democratic capitalism.’
– M. Ishaq Nadiri, New York University, US
‘Doing what has to be done – transitioning from communism to capitalism – presents enormous opportunities as well as a Pandora’s box of pitfalls. This well-documented and solidly reasoned book by economists Patricia Dillon and Frank Wykoff, presents a compelling synthesis, charting the progress of social transformation in the countries of Eastern Europe and drawing crucial lessons painfully gained.’
– Thomas W. Hazlett, Manhattan Institute, Washington, DC, US
‘In a highly apt analysis of a unique period of political collapse and economic bankruptcy of communism in Central and East Europe, Dillon and Wykoff, both excellent economists, employ successfully public choice theory in their perceptive description of the search for a new economic and social order. This thorough examination of the transition process from command-economy-ruled totalitarian societies to free societies based on market economy, with its careful assessment of the economic and social foundations of Hungarian "Goulash communism", Russian "Empire on clay feet" or Czecho-Slovak "Velvet divorce", will help the American reader understand why it is futile to believe in the existence of a universal model of all post-communist societies.’
– Jiri Schwarz, Liberalni Institut, Czech Republic
‘Dillon and Wykoff present a masterly synthesis of data and theory. All future discussion of the post-communist transitions will need to be built on their book.’
– Bernard Saffran, Swarthmore College, US
‘When the Iron Curtain lifted on Eastern Europe, Frank Wykoff was one of the first Western economists selected to teach government officials, administrators, teachers, journalists and others about markets, and about the challenges of transition. Now after much reflection, based on real experience, interviews, and careful research, he and Patricia Dillon have laid out a masterly blueprint on the dynamics of institution building and economic reform. The US State Department will want to give copies away around the world.’
– Gary M. Walton, University of California, US
‘When Marx predicted the withering away of state socialism, he never figured on the 1989 implosion. The transitions that followed have traveled bumpy and highly divergent roads. Dillon and Wykoff’s guide is about the best of the current set of economic Michelins; Creating Capitalism explores the paths to successful market systems and provides clear warnings about popular ways to run off the road.’
– Thomas Borcherding, Claremont Graduate University, US
Contents
Contents: Preface Part I: Theoretical Foundations 1. The Withering Away of Communism 2. The Political Economy of Reform 3. Why Private Markets Work 4. Growth Models for Assessing Reforms 5. How Each Reform Promotes Growth 6. Challenges Facing Reformers Part II: Country Chapters 7. Bulgaria: Impatient but Indecisive 8. Are the Czechs Capitalist Superstars? 9. Estonia is Headed West 10. A Taste of Hungarian Goulash 11. Can Russia Make It? 12. Will the Slovaks Stay the Course? 13. The Long and Winding Road Part III: Appendices A. Reforms in Growth Models B. Political Influence, Economic Performance and Reform Efforts: An Econometric Analysis of Six Newly Independent Countries, 1989–1999 Bibliography Index
