Intermediate Structures and Shock Transition: Squandered Foundations and Capricious Destruction

Issue title: Economic Transformations in Russia and E. Europe

Article type: Research Article

Authors: McIntyre, Robert J.

Affiliations: Economics Department, Bowdoin College, Brunswick, Maine 04011, USA

Abstract: Because of the ‘Rejection of Transplants’ perspective in most Western analyses, both the mixed nature of Soviet-type systems and the special characteristics of production/settlement units have been misunderstood or simple not considered. Orthodox systems-level structural adjustment, marketization and privatization policies are applied without taking account of the special working arrangements of the old system, resulting in largely destructive micro- and mezo-level effects. The destruction they cause is capricious, failing to preserve those aspects of the old system which have future development potential, encouraging a short-term speculative mentality and use of resources, while building up political tensions unlikely to be consistent with continued democratic process. Orthodox ‘reform’ measures have failed to bring to bear developmental wisdom from outside the Anglo-American free market experience to construct a coordinated short-, medium-, and long-run strategy which would permit a non-catastrophic entry into the world market.

Keywords: Privatization, market-failure, ideology, economic policy

DOI: 10.3233/HSM-1993-12408

Journal: Human Systems Management, vol. 12, no. 4, pp. 325-332, 1993