Negative impacts of globalization: Expropriation of national capital in Eastern European countries: Expropriation of national capital in Eastern European countries

Author: Poznans
Publisher:
Publish Date: 2004-05-01
Features: The transition of Eastern Europe to market capitalism occurred at lightning speed, but it also triggered disasters at the same lightning speed. The disaster initially manifested as a truly devastating economic recession, with a level of destruction unseen in contemporary history. Subsequently, the disaster took the form of self-destruction, almost for free, transferring most of its state-owned fixed assets to the Chinese. This book does not view economic transformation as a process of replacing the state with the market. The stance of this book is that economic transformation requires reforming both the state and the market simultaneously. Fundamentally, this means that during the period of economic transformation, the state apparatus must be reorganized, adopting more indirect economic control measures, or abandoning direct economic control measures; at the same time, the market must be institutionalized, transforming its actors from informal, power-based behavior patterns to formalized, legally regulated behavior. In light of this, the final outcome of economic transformation will depend on the success of reforming these two tracks of a country's economic system.