Globalization and catching-up: from recession to growth in transition economies

The transitional recession in countries of Eastern Europe and the former So viet Union has lasted much longer than expected. The legacy of the past and recent policy mistakes have both contributed to the slow progress. As stru ctural reforms and gradual institution building have taken hold, the post-s ocialist economies have started to recover, with some leading countries bui lding momentum toward faster growth. There is a possibility that in the wid er context of globalization several of these emerging market economies will be able to catch up with the more advanced industrial economies in a matte r of one or two generations. (C) 2001 Published by Elsevier Science Ltd on behalf of The Regents of the University of California.