With few exceptions, the privatization of state-owned assets has failed to contribute to the transformation of central and eastern European countries into free-market, private-property economies. This relative failure can be attributed to three factors: the reliance on neoclassical economics, the absence of decommunization, and the unwillingness of the new elite in the region to assign ownership rights in state-owned assets to the true owners.
|Other Independent Review articles by Svetozar Pejovich
|Transition: The First Decade
|From Socialism to the Market Economy: Postwar West Germany versus Post-1989 East Bloc
|Law, Tradition, and the Transition in Eastern Europe