კონფერენცია

∘ Tamta Meskhoradze ∘
POST-COMMUNIST TRANSITION IN INSTITUTIONAL CONTEXT: SHOCK THERAPY VERSUS GRADUALISM

Summary

The paper tells us about the historic transition of ex-communist countries from socialism to the market economy. Herewith, it analyzes the transition period based on the opinions existed between those who advocated rapid reforms, and those who advocated a gradual approach. This paper shows that early and rapid reformers ended up with better institutions than gradual reformers. As to the timing of institutional development, the arguments that it should precede liberalization are not supported by the historical facts. The fastest progress on institutions was made by the very same countries that undertook rapid liberalization.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Tamta Meskhoradze ∘ POST-COMMUNIST TRANSITION IN INSTITUTIONAL CONTEXT: SHOCK THERAPY VERSUS GRADUALISM Summary The paper tells us about the historic transition of ex-communist countries from socialism to the market economy. Herewith, it analyzes the transition period based on the opinions existed between those who advocated rapid reforms, and those who advocated a gradual approach. This paper shows that early and rapid reformers ended up with better institutions than gradual reformers. As to the timing of institutional development, the arguments that it should precede liberalization are not supported by the historical facts. The fastest progress on institutions was made by the very same countries that undertook rapid liberalization.