Institutions, Human Development and Economic Growth in by Pasquale Tridico (auth.)

By Pasquale Tridico (auth.)

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No models had been tested on this subject before and no policies had been implemented before in countries to allow for such a complex transformation. Markets were created in capitalist countries over a very long period of time, with a combination of public and private institutions, in an environment of genuine attempts towards better living conditions. After the Second World War in particular, these attempts were inspired by Keynesian policies, within a specific institutional framework that was oriented towards social policies and welfare, rather than an environment of cultural and ideological adversity towards the collective good and social policies such as the one prevailing after the fall of the Berlin Wall in many FCEs.

All the free seats were won by the Solidarno´sc´ coalition. In the Senate, all the seats were freely contested and 99 out of 100 were won by the Solidarno´sc´ coalition. After this election, it was clear to everybody in Poland, the Soviet Empire and the West that the communists had lost their consensus. It was likely that they did not command a majority in the countries where they constituted the ruling government. Therefore, such semi-free elections represented a symbol marking the collapse of the communist system in Central and Eastern Europe.

First of all, this is because economists and social scientists in general, unlike engineers, who can build and test a concrete or iron bridge following precise mechanical and physical rules and principles, can rely only on a set of theoretical assumptions that are valid under specific simple stylised facts. Therefore, transition, when perceived as a precise policy prescription which allows for the 36 Institutions and Development in Transition Economies passage through a metaphorical bridge from plans to markets, is a misleading concept.

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