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The Transition in Eastern Europe: The Case for Industrial Policy

In: The Transformation of the Communist Economies

Author

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  • Michael A. Landesmann
  • Istvan Abel

Abstract

Since the beginning of the dramatic recent wave of economic reforms in 1989, it has been difficult to hold a rational economic discussion about the specific role which industrial policy can play in the current context of the transformation in Eastern Europe. The notion of industrial policy was too highly charged with associations of past planning experiences in communist countries; hence it was seen as an anathema in any transition towards a Western-style market economy. In this atmosphere people overlooked the fact that industrial policies form an integral part of the set of policy instruments used in Western economies and that, more recently, economic theory has developed rigorous foundations for such policies. They also featured prominently in the experiences of countries which embarked upon successful catching-up processes.

Suggested Citation

  • Michael A. Landesmann & Istvan Abel, 1995. "The Transition in Eastern Europe: The Case for Industrial Policy," Palgrave Macmillan Books, in: Ha-Joon Chang & Peter Nolan (ed.), The Transformation of the Communist Economies, chapter 5, pages 136-161, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-23916-0_5
    DOI: 10.1007/978-1-349-23916-0_5
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    Cited by:

    1. Rachel Epstein, 2003. "The Internationalization of Finance and Defense in Postcommunist Poland," EUI-RSCAS Working Papers 2, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).

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