Intangible Factors in the Eastern European Transition: A Socio-Economic Analysis |
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Authors: | John F Tomer |
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Institution: | 1. CEE &2. NIS Department , c/o DIW German Institute for Economic Research , K?nigin‐Luise Str. 5, Berlin, D‐14195, Germany;3. Associate Researcher, CERNA‐Centre for Industrial Economics , Paris School of Mines , 60 bd. Saint‐Michel, Paris cedex 06, F‐75272, France |
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Abstract: | Transition has generally been conceived of as a substitution of the organisational structures and the legal, financial and political relationships of capitalism for those of socialism, a replacement of 'hard' features. This conception leaves out 'soft' factors such as attitudes, behavioural orientations, values and beliefs which, for successful socio-economic performance, must mesh with the hard elements. When all the hard features are changed quickly without attention to the soft features, as in the neo-liberal radical reform strategy, the result is inevitably a deep shock greatly retarding the transition process. To avoid this, sufficient attention should be paid to intangible capital formation that creates new soft features. The socio-economic theory developed here (1) explains the differing degrees of transition success in Eastern Europe and (2) suggests alternatives to neo-liberal transition strategy. |
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