Lessons Learned from Post-Communist Transitions

 

The collapse of communism in the former Soviet bloc created a unique and unprecedented momentum for political and economic reform. While the overall policy prescription offered by the Western countries and international organizations was unanimous – democratize and introduce free markets – the details of how those broad guidelines were implemented varied. So did the outcomes.

 

Little or no prior democratic experience and traditions, the lack of effective mechanisms for transparency and accountability, and the absence of market institutions were some of the key issues those countries had to grapple with at the outset of reforms. The most common lingering problems in transition countries have been weak governance, inefficient judicial systems, large informal sector, corruption, and persisting barriers to entrepreneurship.

 

Today, the outcomes in transition countries vary from success stories (new EU member countries), challenges (Ukraine or the former Yugoslavia) to the cases of backsliding on democratic reforms (Russia). What are the lessons learned and what is the relevance of post-communist transitions to the challenges faced by other countries around the world trying to implement democratic and market reforms?