| List of figures | p. x |
| List of tables | p. xi |
| Preface | p. xiii |
| Theoretical Foundations | |
| The withering away of communism | p. 5 |
| The end of an idea | p. 5 |
| Economic analysis of institutional change | p. 6 |
| The book's objectives: from models to reality | p. 12 |
| Two historic views of the industrial revolution | p. 13 |
| Lessons from the collapse of the Soviet Union | p. 19 |
| The new world order | p. 21 |
| The political economy of reform | p. 24 |
| New political and economic challenges | p. 24 |
| Political impediments to economic reform | p. 27 |
| Transition to what? | p. 31 |
| Problems in political economy | p. 34 |
| Why private markets work | p. 37 |
| Why these reforms? | p. 37 |
| Price liberalization | p. 38 |
| Property privatization | p. 41 |
| Macroeconomic stabilization | p. 44 |
| Industry restructuring and deregulation | p. 47 |
| Trade liberalization | p. 49 |
| An active role for government | p. 49 |
| Failure: markets versus plans | p. 52 |
| Growth models for assessing reforms | p. 57 |
| Reforms lead to growth | p. 57 |
| Growth modelling: description, purposes and limitations | p. 59 |
| The structure of growth models | p. 66 |
| The workings and outcomes of growth models | p. 69 |
| Saving: the essential ingredient | p. 72 |
| How each reform promotes growth | p. 76 |
| The economic channels of reform | p. 76 |
| Price liberalization | p. 78 |
| Property privatization | p. 79 |
| Macroeconomic stabilization | p. 81 |
| Industry restructuring and deregulation | p. 82 |
| Trade liberalization | p. 85 |
| Summary: reforms and growth | p. 86 |
| Challenges facing reformers | p. 91 |
| Why a political model is important | p. 91 |
| Interaction of political and economic systems | p. 93 |
| A model of elections and politics | p. 95 |
| Common problems facing reformers | p. 102 |
| Unique local conditions | p. 106 |
| Country Chapters | |
| Bulgaria: impatient but indecisive | p. 115 |
| History before communism | p. 116 |
| History under communism | p. 117 |
| Political transition, economic changes | p. 120 |
| Economic reforms: three steps forward and two back | p. 123 |
| Conclusions and recommendations | p. 130 |
| Are the Czechs capitalist superstars? | p. 133 |
| History before communism | p. 135 |
| History under Soviet rule | p. 137 |
| The Velvet Revolution | p. 139 |
| Economic reforms | p. 144 |
| Economic performance and the future | p. 151 |
| Estonia is headed West | p. 155 |
| Estonia before the Soviets | p. 157 |
| History under Soviet rule | p. 159 |
| Political transition and the birth of Estonian reforms | p. 162 |
| Attitudes to reforms since independence | p. 164 |
| Economic reforms: how complete, how successful? | p. 165 |
| Sustainability of reforms and the future | p. 173 |
| A taste of Hungarian goulash | p. 177 |
| History before communism | p. 178 |
| History under communism | p. 181 |
| The political transition | p. 186 |
| A question of political will | p. 189 |
| Conclusions and outlook | p. 194 |
| Can Russia make it? | p. 196 |
| History before communism | p. 197 |
| History under communism | p. 199 |
| The political transition | p. 200 |
| Economic reforms | p. 201 |
| Economic performance | p. 213 |
| Conclusions and recommendations | p. 214 |
| Will the Slovaks stay the course? | p. 220 |
| Slovakia before the Soviets: years of foreign domination | p. 222 |
| The Soviet years | p. 224 |
| The Velvet Revolution and Divorce, 1988-1993 | p. 226 |
| Economic reforms | p. 227 |
| The future looks better than the past | p. 234 |
| Conclusions and questions | p. 236 |
| The long and winding road | p. 238 |
| Appendices | |
| Reforms in growth models | p. 251 |
| The corn economy | p. 252 |
| The public fisc and private budgets | p. 262 |
| Endogenous technological change and technology transfer | p. 266 |
| Technology transfer | p. 269 |
| Political influence, economic performance and reform efforts: an econometric analysis of six newly independent countries, 1989-1999 | p. 273 |
| Reforms and the growth model | p. 273 |
| Voting behavior and the growth model | p. 276 |
| Simultaneous equation system | p. 277 |
| Allowing for not voting pocketbook issues | p. 279 |
| Econometric results and the data | p. 282 |
| Votes, reforms and performance: dummy variable models | p. 287 |
| Votes, reforms and performance: percentage of votes and reform indexes | p. 292 |
| Conclusions and recommendations | p. 303 |
| Bibliography | p. 305 |
| Index | p. 323 |
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