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Contents

Notice
Task Force on Economies in Transition
Contributors
Acknowledgements

Introduction 1

I Overview

11
Understanding Economic Change 13
Douglass C. North

II Institutional Change, Property Rights, and Corruption

19
Underground Activity and Institutional Change: Productive, Protective, and Predatory Behavior in Transition Economies 21
Edgar L. Feige
1 Property Rights in Transition Economies: A Commentary on What Economists Know35
Alexandra Benham and Lee Benham
2 Rethinking the Theory of Economic Policy: Some Implications of the New Institutionalism61
Thráinn Eggertsson
3 Missed Markets: Implications for Economic Behavior and Institutional Change80
Leonid Polishchuk
4 Fuzzy Property: Rights, Power, and Identity in Transylvania's Decollectivization102
Katherine Verdery
5 Rule Evasion in Transitional Russia118
James Leitzel

III Transforming Management, Labor, and Production

131
Restructuring Production Without Market Infrastructure 133
Judith Thornton
6 Learning in Networks: Enterprise Behavior in the Former Soviet Union and Contemporary Russia156
Yevgeny Kuznetsov
7 Formal Employment and Survival Strategies After Communism177
Simon Johnson, Daniel Kaufman, and Oleg Ustenko
8 Observations on the Speed of Transition in Russia: Prices and Entry203
Daniel Berkowitz and David N. DeJong
9 Social Policy and the Labor Market in Russia During Transition223
Alastair McAuley

IV Social Trends, Household Behavior, and Social-Sector Policies

245
Social Costs, Social-Sector Reforms, and Politics in Post-Communist Transformations 247
Joan M. Nelson
10 Reform of the Welfare Sector in the Post-Communist Countries: A Normative Approach272
János Kornai
11 Social Policy Challenges and Dilemmas in Ex-Socialist Systems299
Zsuzsa Ferge
12 Health Reform in Russia and Central Asia322
Jeni Klugman and George Schieber with Timothy Heleniak
and Vivian Hon
13 Vulnerable Populations in Central Europe351
Barbara Boyle Torrey, Timothy M. Smeeding, and
Debra Bailey
14 Pension Reform in the Post-Communist Transition Economies370
Louise Fox
15 From Safety Nets to Social Policy: Lessons for the Transition Economies from the Developing Countries385
Carol Graham

V Transforming the Role of the State

401
Democracy, Social Change, and Economies in Transition 403
Charles Tilly
16 The State in a Market Economy411
Adam Przeworski
17 The State as an Ensemble of Economic Actors: Some Inferences from China's Trajectory of Change432
Andrew G. Walder
18 Possible Future Directions for Economies in Transition453
Anders Åslund

VI Research Priorities for Post-Communist Economies

471
Research Priorities for Post-Communist Economies 473
Task Force on Economies in Transition
Appendix: Further Reading 491
Index 497