This book explores institutional change and economic behaviour by examining the transition process in the former socialist countries that joined the EU in 2004, looking at the growth occurring in China, offering a historical perspective on economic underdevelopment in the Middle East, and discussing the neo-classical paradigm.

Countries of the former Soviet Union and Eastern Europe are entering the second decade of political transformation and economic reform. The new policy challenges center on the nature of the social contract between citizens and their governments. The essays in this volume focus on two interrelated issues: the making of fiscal policy and the provision of citizens' welfare, particularly regarding pensions and health care. The essays emphasize that there is no single model of a market economy; rather, governments and publics face a range of options for restructuring the socialist welfare state.

Kornai presents an assessment of Hungary's transition from a socialist to a market economy. In a comprehensive critique of socialist economy reform, Kornai explains how the system's ideological and political attributes deny the idea of market socialism. Kornai provides examples of Hungary's economoc stabilization and conditions for its sustainable growth.

Building a Trustworthy State in Post-Socialist Transition considers the problems and prospects for creating trustworthy and reliable public institutions in the aftermath of the transition from socialism in Central and Eastern Europe. The volume draws on the experience of those who have lived through and studied the transition and contrasts their insights with those of generalist scholars who study government accountability and democracy. The contributions originated in the Collegium Budapest project on Honesty and Trust: Theory and Experience in the Light of the Post-Socialist Transition,...

Beneficial social and economic exchange relies on a certain level of trust. But trust is a delicate matter, not least in the former socialist countries where illegitimate behaviour by governments made distrust a habit. The chapters in this volume analyze the causes and the effects of the lack of social trust in post-socialist countries. The contributions originated in the Collegium Budapest project on Honesty and Trust: Theory and Experience in the Light of the Post-Socialist Transition. A second volume entitled, Building a Trustworthy State in Post-Socialist Transition, is being published...

Capitalism has a history of several hundred years, while the socialist regime existed only for a few decades. But this pair of opposites was central to the history of the twentieth century. This book covers topics such as socialism, capitalism, democracy, and change of system.

Reform of the welfare sector is an important yet difficult challenge for countries in transition from socialist central planning to market-oriented democracies. Here a scholar of the economics of socialism and post-socialist transition, and a health economist take on this challenge. They offer health sector reform recommendations for ten countries of Eastern Europe, drawn from nine guiding principles. The authors conclude that policymakers need to achieve a balance, both assuring social solidarity through universal access to basic health services and expanding individual choice and...

Reform of the welfare sector is an important yet difficult challenge for countries in transition from socialist central planning to market-oriented democracies. Here a scholar of the economics of socialism and post-socialist transition, and a health economist take on this challenge. They offer health sector reform recommendations for ten countries of Eastern Europe, drawn from nine guiding principles. The authors conclude that policymakers need to achieve a balance, both assuring social solidarity through universal access to basic health services and expanding individual choice and...

In Dynamism, Rivalry, and the Surplus Economy, Janos Kornai examines capitalism as an economic system and in comparison to socialism. Kornai explains his view of capitalism as an economy of surplus--a chronic excess of supply of goods and labor. This environment breeds rivalry among producers, which in turn encourages innovation. Socialism, on the other hand, is defined by a shortage of goods and labor and excess of demand. Whereas socialism is slothful and imitative, capitalism is dynamic and progressive. The two essays of this book will explore these differing ideologies on macro...