DEVELOPMENT DIPTYCH IN THE POST-SOCIALIST GROWTH EXPERIENCE

−WITH REFERENCE TO SERBIA –

Authors

  • Ljubomir Madzar

Keywords:

Institutions, rhythm of institutional change, revolution vs. step-by-step change, reforms, centralism, decentralization, socialism, collectivism, self-management, coercion, political power as a source of inequality, breakdown of the systems, economic development, extensive development, economic efficiency, rate of technical progress

Abstract

An unusual, seemingly incompatible combination of facts has occurred in a not so small number of post-socialist economies. All of them switched from collectivistically structured, administratively ruled economies to the market based, appropriately decentralized institutional systems. The firmly held theory and a mountain of empirical evidence implied that this historical institutional shift would greatly enhance efficiency of the economies and their badly needed growth potential. The actual movements did not follow the theoretically indicated directions and the performance of the newly reformed economies left much to be desired. Some episodes of the renowned extensive socialist growth delivered the rate of growth of the economy which turned out incomparably higher in comparison with current post-socialist times. Similarly and in line with that, the output of basic necessities expanded much more rapidly, hosing construction offered incomparably larger number of apartments and social policy system seems to have taken a more conscientious and more efficient care of the needed. Finding a job for people of quite different educational profiles was much easier and more reliable...

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Published

27-12-2019