Twenty Years of Economic Transition: Successes and Failures

This study takes stock of 20 years of economic transition amidst a global economic crisis. The period from the fall of the Berlin wall up to the present day is reviewed to identify successes and failures. In general, the high hopes and expectations at the beginning of the system transformation have been disappointed. There has been some progress in Central and Eastern Europe; this stands in stark contrast to the social costs incurred by rapid mass privatization in countries of the former Soviet Union. In addition, the Washington consensus is found to be flawed and partly responsibleforthefailures. With economic theory in self-consideration, the transition countries call for an institutionalist approach that includes historical time.