Privatising the Process of Institutional Change in Eastern Europe

Testo disponibile solo in lingua inglese.
This essay tries to answer two important questions: why do we note differences among Eastern European countries in terms of institutional changes and what are the implications of those changes for efficiency? The author begins by analysing the effects of the various institutional changes on incentives and transaction costs. He goes on to argue that the privatisation of the process of institutional change might be justified on the grounds of economic efficiency. Although the essay is neither a study of the transition process in Russia nor an assessment of the role of organised crime in that country, present conditions there do provide a useful background for analysis of the effects of privatising the process of institutional change.