REFORMS IN EASTERN-EUROPE AND THE FORMER SOVIET-UNION IN LIGHT OF THEEAST-ASIAN EXPERIENCE

During the past five years, there has been an important debate over th e differing styles of market reforms in the formerly planned economies in East Asia versus Eastern Europe and the former Soviet Union (EEFSU ). This paper puts forward three related propositions. First, the rapi d growth of East Asia, compared with economic contraction in EEFSU, re flects differences in economic structure and initial conditions, rathe r than differences in economic policymaking. Second, East Asian gradua lism could nor, and did not, work in EEFSU. Third, EEFSU continues to face serious problems with an overextended welfare state inherited fro m the socialist perod. (C) 1995 Academic Press, Inc.