Negative effects of globalization (the expropriation of national capital in Eastern European countries)

Author: Bozhansky (Author), Tong Xiangguo (Translator)
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 speed. The disaster initially manifested as a truly devastating economic recession, with a level of destruction unprecedented 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 restructured, with more indirect economic control methods being adopted, or direct economic control methods being abandoned; at the same time, the market must be institutionalized, transforming its actors from informal, power-based behavior patterns to formalized, legally regulated actions. In light of this, the final outcome of economic transformation will depend on the success or failure of reforming these two tracks of a country's economic system.