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A post Keynesian critique of privatization policies in transition economies
Author(s) -
Marangos John
Publication year - 2002
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.909
Subject(s) - economics , incentive , inflation (cosmology) , language change , unemployment , transition (genetics) , capitalism , market economy , competition (biology) , property rights , economic system , macroeconomics , keynesian economics , microeconomics , politics , art , ecology , biochemistry , chemistry , physics , literature , theoretical physics , gene , political science , biology , law
The privatization policies implemented in transition economies were based on the neoclassical principles of economic thought. The neoclassical privatization policies contributed to the well‐known results of a large reduction in output, high unemployment and inflation and a breakdown of institutional norms resulting in corruption and illegal activities. For the post Keynesians, there could have been a transition to a market economy without a substantial change in property ownership. This was because ownership, as such, was less important than competition, the incentive structure and the nature of regulatory policies. Consequently, post Keynesian policies of privatization would had resulted in a substantially smaller social cost of transition. Copyright © 2002 John Wiley & Sons, Ltd.