The Political Economy of Transition: Coming to Grips with History and Methodology

By Jozef M.Van Brabant | Go to book overview

9

THE EVOLVING ROLE OF THE STATE DURING TRANSFORMATION

The recent near-global interest in “liberalization” policies has fired anew much ideology in riling against the activist state. In some of the more extreme cases, the position taken has slipped into libertarian, quasi-anarchist directions or even anarcho-capitalist dimensions (Buchanan 1987). This movement in market economies found an avidly enthralled, if on the whole naïvely informed, audience upon the transition’s eruption. In rationalizing neoliberalism as a powerful ideology, indeed an instrument to influence events there, it has especially taken the rhetorical form of lambasting the role of the state. Its economic functions in particular have been under constant attack as being predatory, wasteful, rent seeking, too large, klepto-patrimonial, and so on. Efforts were launched from the beginning to compress the role of the state, in some cases with the explicit intention of reducing its economic involvement to that of the night watchman, that is, essentially protecting property rights and creating and maintaining the liberal market framework come what may (Sztompa 1996a).

Yet socioeconomic order without a functioning state is not readily imagined in the real world. Few would contest this position (J. Gray 1989, 1992). The market defects for which state intervention may be needed are perhaps nowhere as blatant as in transition economies (see Chapter 3). At the same time, the capacities of the state in these countries to fulfill roles that it would be accorded even in the more liberal market environment are rather limited, though varying by country. This poses a dilemma for policy making. The new leaders of the European, as distinct from the Asian, reforming countries, have displayed considerable enthusiasm for the market, private ownership, and privatization. This derives in part from the abundant support they have elicited from the most avid “free market” proselytizers in the west. But it stems also from the conjecture that “in economics and politics, as in religion, the new convert is often the most ardent in belief” (Galbraith 1990, p. 51).

In this chapter I examine why and when there could be a broader role for the state in formulating, implementing, monitoring, assessing, and fine-tuning the transformation agenda. This complements the introductory remarks on the role of the state in market formation of Chapter 3 and provides details on the

-343-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
The Political Economy of Transition: Coming to Grips with History and Methodology
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 560

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.