The fall of communism 25 years ago transformed the political and economic landscape in more than two dozen countries across Europe and Asia. In this volume political leaders, scholars, and policymakers assess the lessons learned from the “great rebirth” of capitalism, highlighting the policies that were the most successful in helping countries make the transition to stable and prosperous market economies, as well as those cases of countries reverting to political and economic authoritarianism. The authors of these essays conclude that visionary leadership, and a willingness to take bold and comprehensive steps, achieved the best outcomes, and that privatization of state-owned enterprises and deregulation were essential to success. Recent backsliding, such as the reversal of economic and democratic reforms in Russia and Hungary, has cast a shadow over the legacy of the transition a quarter century ago, however.
The fall of communism transformed the political and economic landscape in more than two dozen countries across Europe and Asia. In this volume published on the 25th anniversary of the fall, political leaders, scholars, and policymakers assess the lessons learned from the "great rebirth" of capitalism and highlight the policies that were most successful in helping countries make the transition to stable and prosperous market economies. Also discussed in this book are examples of countries reverting to political and economic authoritarianism. The authors of these essays conclude that the best outcomes resulted from visionary leadership, a willingness to take bold steps, privatization of state-owned enterprises, and deregulation. Recent backsliding in Russia and Hungary has cast a shadow over the legacy of the transition a quarter century ago, however. This volume grew out of a two-day symposium of experts and practitioners reflecting on the past, present, and future of reform, held in Budapest, Hungary, on May 6–7, 2014.
In mid-2009 Simeon Djankov, who had dealt with a variety of economic and financial crises as chief economist for finance and private sector development at the World Bank, was suddenly thrust into the job of finance minister of his native Bulgaria. For nearly four years in that post, he attended more than 40 meetings of European finance ministers and had a front row seat at the intense discussions and struggles to overcome the economic and financial crisis that threatened to unravel the historic undertaking of an economically integrated Europe. In this personal account, Djankov details his odyssey on the front lines, observing Europe's fitful efforts to contain crises in Greece, Hungary, Ireland, Portugal, Spain, Italy, Cyprus, and France. He tells the inside story of how the European Central Bank assumed responsibility for the crisis, pledging to do "whatever it takes" to save the euro area. This candid book recounts the disagreements over fiscal austerity, monetary policy, and banking supervision, while focusing on the personalities who promoted progress—and those who opposed it. He also tells the dramatic story of the events that led to his own resignation as finance minister in 2013 over the policies he was pursuing to spare Bulgaria from getting sucked into the crisis.
This report addresses the most important challenges facing the Latin America and Caribbean region as it attempts to replace its traditional economic and social structures, including populist institutions, with a modern, efficient, administrative state. The analysis focuses on the political economy of pending reforms and their ramifications. The report discusses (1) recent economic and political developments; (2) systemic issues such as high real interest and unemployment rates and declining export growth; (3) social policies and the need to consolidate macroeconomic stability; and (4) how to define and build the new Latin American state. An appendix provides detailed information on selected country performance.
In mid-2009 Simeon Djankov, who had dealt with a variety of economic and financial crises as chief economist for finance and private sector development at the World Bank, was suddenly thrust into the job of finance minister of his native Bulgaria. For nearly four years in that post, he attended more than 40 meetings of European finance ministers and had a front row seat at the intense discussions and struggles to overcome the economic and financial crisis that threatened to unravel the historic undertaking of an economically integrated Europe. In this personal account, Djankov details his odyssey on the front lines, observing Europe's fitful efforts to contain crises in Greece, Hungary, Ireland, Portugal, Spain, Italy, Cyprus, and France. He tells the inside story of how the European Central Bank assumed responsibility for the crisis, pledging to do "whatever it takes" to save the euro area. This candid book recounts the disagreements over fiscal austerity, monetary policy, and banking supervision, while focusing on the personalities who promoted progress—and those who opposed it. He also tells the dramatic story of the events that led to his own resignation as finance minister in 2013 over the policies he was pursuing to spare Bulgaria from getting sucked into the crisis.
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