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The Lessons of Limited Market-Oriented Reform

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  • Thomas A. Wolf

Abstract

The waves of reform and restructuring now engulfing most of Eastern Europe did not begin from the same starting point in each country. While they all share a common economic legacy—the traditional Soviet-type centrally planned economy—some countries had been experimenting with limited forms of market-oriented reform for one or two decades. In particular, Hungary (since 1968) and Poland (since 1981-82) had been flirting with a market-oriented system for years, with programs aimed at achieving an efficient coexistence of plan and market. This paper will first examine the thinking behind the early attempts to combine plan and market. It will then outline some of the key elements of the limited market-oriented reforms undertaken in Hungary and Poland in the 1980s. Finally, it will suggest some of the important lessons from this experience.

Suggested Citation

  • Thomas A. Wolf, 1991. "The Lessons of Limited Market-Oriented Reform," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 45-58, Fall.
    • Handle: RePEc:aea:jecper:v:5:y:1991:i:4:p:45-58
    Note: DOI: 10.1257/jep.5.4.45
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.5.4.45
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    References listed on IDEAS

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    1. Stanislaw Gomulka & Jacek Rostowski, 1984. "The reformed polish economic system 1982–1983," Europe-Asia Studies, Taylor & Francis Journals, vol. 36(3), pages 386-405.
    2. Janusz Zielinski, 1980. "New polish reform proposals," Europe-Asia Studies, Taylor & Francis Journals, vol. 32(1), pages 5-27.
    3. Kornai, Janos, 1986. "The Hungarian Reform Process: Visions, Hopes, and Reality," Journal of Economic Literature, American Economic Association, vol. 24(4), pages 1687-1737, December.
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    Cited by:

    1. Li, Jianglong & Liu, Hongxun & Du, Kerui, 2019. "Does market-oriented reform increase energy rebound effect? Evidence from China's regional development," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    2. Fardmanesh, Mohsen & Tan, Li, 2003. "Wage and price control policies in transition economies," Journal of Development Economics, Elsevier, vol. 70(1), pages 173-200, February.
    3. Shi Li & Yaohui Zhao, 2003. "The Decline of In-kind Wage Payments in Urban China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 1(2), pages 245-258.
    4. John Marangos, 2005. "A Political Economy Approach to the Neoclassical Gradualist Model of Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 19(2), pages 263-293, April.
    5. Fardmanesh, Mohsen & Tan, Li, 1996. "Wage and Price Control Policies in Socialist Transitional Economies," Center Discussion Papers 28515, Yale University, Economic Growth Center.
    6. Johnston, Richard S. & Zhang, Zhengkun, 1998. "A Contribution to the Theory of Price Regulations and Commodity Bundling with an Application to the Case of China," Journal of Comparative Economics, Elsevier, vol. 26(1), pages 142-149, March.

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    More about this item

    JEL classification:

    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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