Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212508 
Authors: 
Year of Publication: 
2002
Series/Report no.: 
BOFIT Discussion Papers No. 10/2002
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
This study compares transition processes in countries of Central and Eastern Europe, the former Soviet Union (FSU) and sub-Saharan Africa.By widening the scope from most- to least-developed transition economies, the study establishes the importance of a strong state with evolved institutional capacity to protect citizens, enforce property rights and generate social capital.The evidence presented further argues that enforceable, credible property rights with associated market discipline are among the best antidotes to corruption, shadow economies, criminal injustice and poverty.The presence of accountable institutions also influences economic growth and the ability of a country to attract trade and foreign direct investment.Consequently, when institutions of FSU and sub-Saharan countries develop to the point they become attractive to traders and investors from rich countries, their governments need to focus on abolition of barriers to trade, investment and capital.The author commends the recent reorientation of the international donor community towards encouraging recipient governments to commit credibly to increasing capacities of their state institutions with a view to supporting property-based rule of law and social order.
Subjects: 
sub-Saharan Africa
former Soviet Union
property rights
institutions
growth
international trade
development assistance
Persistent Identifier of the first edition: 
ISBN: 
951-686-836-3
Document Type: 
Working Paper

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