Competition, entrepreneurship and institutional change in transition

Více o knize

“I believe that dangers await only those who do not react to life. Anyone who seizes the impulses and realities of life, and forms his policies accordingly, should fear no difficulties.” These words from Mikhail Gorbachev, spoken before the fall of the Iron Curtain, reflect his realization that political decisions must align with societal developments. This understanding, however, was not effectively implemented, as evidenced by the historical attempts to reshape Eastern Europe through forceful policies. The book explores whether a market economy can be designed and what fosters competition and entrepreneurship. It examines the varied pace of dismantling socialist institutions across different societies, focusing on the transitions in the Baltic states and the post-Yugoslav countries: Croatia, Bosnia and Herzegovina, and Serbia. Grounded in the Austrian School of Economics, particularly Friedrich August von Hayek's theory of spontaneous orders, it argues that successful reforms arise organically from a society’s traditions and culture. By analyzing the political and economic histories of these nations, along with their cultural contexts, the book elucidates why the Baltic countries experienced smoother transitions compared to their post-Yugoslav counterparts, emphasizing the lessons of 1989 that have been overlooked.