Journal Article
Transition and Long-Term Growth

Contrary to widespread optimistlc expectations, the transition to the market economy has brought about an unexpected, large and lasting recession in most of Eastern Europe and the former Soviet Union. The transition has also been characterized by considerable cross-country variations in both policy approaches and outcomes. In this paper we discuss the causes of these differences in outcomes, prospects for long-term growth for groups of economies in transition. and possible policy responses for the future.