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Europe versus Asia: Contrasting Paths to the Reform of Centrally Planned Systems of Political Economy

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The Transformation of the Communist Economies

Abstract

Like Western Europe after World War II, Eastern and Central European Countries (ECEC) now have the historic opportunity to create ex novo optimal economic and social institutions and thereby free their latent energies. They have the human capital that distinguishes them from Less Developed Countries and makes rapid reconstruction possible. The factor endowment of ECEC is quite similar to that of Western Europe after World War II or that of some Asian Newly Industrialising Countries. Moreover, they can avoid policy choices demonstrated as erroneous by experience and leap frog those Western countries whose oligarchic inwards looking co-institutional framework has not had the chance to be dynamited away. (Steinherr, 1991, pp. 4–5)

We thank Michael Ellman for his helpful comments on an earlier version of the chapter. Needless to say, he cannot be held responsible for any of the views expressed in the chapter.

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Authors
  1. Ha-Joon Chang
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  2. Peter Nolan
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Editor information

Editors and Affiliations

  1. University of Cambridge, UK

    Ha-Joon Chang (Assistant Director of Development Studies) (Assistant Director of Development Studies)

  2. Jesus College, Cambridge, UK

    Peter Nolan (Director of Studies in Economics) (Director of Studies in Economics)

Copyright information

© 1995 Ha-Joon Chang and Peter Nolan

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Chang, HJ., Nolan, P. (1995). Europe versus Asia: Contrasting Paths to the Reform of Centrally Planned Systems of Political Economy. In: Chang, HJ., Nolan, P. (eds) The Transformation of the Communist Economies. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-23916-0_1

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