Stiglitz, Joseph E. (1999). Quis Custodiei Ipsos Custodes?. Challenge, 42(6)
The former Soviet Union and other Eastern European countries' transition to market economies is ambiguous. With only one exception, the countries under question have done more poorly since the transition to the market economy than before. Incomes and standards of living have, at best, stagnated in most countries, if not fallen; popular confidence in market processes and the optimism of transition have been eroded in many if not most of these countries. Any strategy going forward must deal with these facts. In many countries, a strict interpretation of the rules of a market economy would lead quickly to government takeover of large proportions of existing assets that have been privatized in the past decade. There is a 2nd chance for government to go about the reprivatization of these assets in ways that take greater recognition of the problems of corporate governance and other issues. As important as restructuring existing assets and enterprises is the creation of new ones; job creation and entrepreneurship need to be put at the center of discussions. The high and growing levels of corruption and perceived problems of governance are both cause and consequence of the failure of the economic transition.
Stiglitz, Joseph E.