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Western Aid Conditionality and the Post-Communist Transition

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  • Marek Dabrowski

Abstract

The political and economic collapse of communism in the Eastern Europe and the former Soviet Union has created enormous challenge for Western democracies. The challenge has been not that of providing financial developmental aid although it is very important for countries facing the double challenge of transition and development. Its most important dimension has been to provide active policy support to implement reforms dismantling central planning. This in turn includes designing and providing a stimulus to implement a viable transition strategies and establishing market friendly institutions. Thus, the question is the extent to which Western assistance has made a difference in the course of transition from economic systems based on central planning to those based on competitive markets. This paper examines links between the economic transition in the former Soviet bloc countries (including states that emerged from the dissolution of the Soviet Union) and Western assistance. Its main focus is on addressing two specific questions: (i) have the Western governments and international institutions supported the most effective strategy of transition in Eastern Europe and FSU?; and (ii) what kind of aid policy can give the best results in terms of recipient countries commitment to effective transition strategy?

Suggested Citation

  • Marek Dabrowski, 1995. "Western Aid Conditionality and the Post-Communist Transition," CASE Network Studies and Analyses 0037, CASE-Center for Social and Economic Research.
    • Handle: RePEc:sec:cnstan:0037
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    References listed on IDEAS

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    1. Aslund Anders, 1994. "Lessons of the First Four Years of Systemic Change in Eastern Europe," Journal of Comparative Economics, Elsevier, vol. 19(1), pages 22-38, August.
    2. Peter B. Kenen, 1994. "Managing the World Economy: Fifty Years After Bretton Woods," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 48, April.
    3. de Melo, Martha & Denizer, Cevdet & Gelb, Alan, 1996. "From plan to market : patterns of transition," Policy Research Working Paper Series 1564, The World Bank.
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    Cited by:

    1. Andreea Stoian & Filip Iorgulescu, 2016. "The study of public debt: which are the distinctions between the emerging and advanced economies in the European Union?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(1), pages 167-196, February.
    2. Marek Dabrowski, 2001. "Currency Crises in Emerging Markets - Selected Comparative Studies," CASE Network Reports 0041, CASE-Center for Social and Economic Research.
    3. Vladimir Mau, 2012. "Post-communist Country Assistance Programs: Some Approaches to Evaluation of Factors Affecting Their Efficiency," Working Papers 0038, Gaidar Institute for Economic Policy, revised 2012.
    4. Alina-Petronela Haller & Ovidiu Gherasim & Mariana B?lan & Carmen Uzl?u, 2020. "Medium-term forecast of European economic sustainable growth using Markov chains," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 585-618.

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