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Stabilization and Privatization: An Economic Evaluation of the Shock Therapy Program is the first comprehensive account of Poland's economic transition since mid-1989. Monetary stabilization, trade liberalization (including convertibility) and privatization of state capital assets are discussed. Sources of economic recession which have accompanied the post-1989 transition are analyzed. The role of demand-side factors (i.e. monetary contraction) is weighed against that of supply-side factors (i.e. credit availability). The prevailing view is that the recession has been supply-type rather than demand-type. Economic performance has been impacted by the lack of a proper institutional framework (e.g. a segmented banking sector, diluted property rights). Arguments in favor of evolutionary reforms and market enhancing measures are presented.
Stabilization and Privatization examines the main components of Poland's shock therapy program implemented in 1990. Post-shock recession, lasting at least through 1992, is examined to establish whether a sharp decline in output was caused by excessive demand contraction or lack of accommodating credit policies. The merits of an evolutionary approach and a more proactive state are debated.
List of contents
One Stabilization Program and Economic Recession.- 1 Poland's Transition to Capitalism: Shock and Therapy.- 2 Poland's Quest for Economic Stabilization, 1988-1991: Interaction of Political Economy and Economics.- 3 Taking Stock of the "Big Bang".- Two Foreign Trade Sector: Reform and Policies.- 4 The CMEA Demise, Trade Restructuring, and Trade Destruction in Eastern Europe: Initial Assessment.- 5 The New East and Old Trade and Payment Problems.- 6 Liberalizing Foreign Trade in a Socialist Economy: The Problem of Negative Value Added.- Three Privatization of State Capital Assets.- 7 East European Transformation: The Supply Side.- 8 Inflation Tax, Household Wealth, and Privatization in Poland.- 9 The Economic Transformation of Eastern Europe: The Case of Poland.- Four Alternative Approaches to Economic Transition.- 10 Evolutionary and Radical Approaches to Economic Reform.- 11 Transition to Market in a Comparative Perspective: A Historian's Point of View.- 12 Is There a J-Curve for the Economic Transition from Socialism to Capitalism?.
