Reforms in the Transitional Economies of Asia
Virtually all the world's formerly planned economies have recently undertaken systematic reforms with the ultimate objective of replacing central planning with reliance on market mechanisms. The proposed reforms have been fundamental and have had significant impact on all sectors of the economy. Implementing these reforms has proved difficult for a number of reasons, including the lack of historical precedents from which to derive lessons. The People's Republic of China, Lao People's Democratic Republic, and Viet Nam have reached a stage in their reform process where a failure to move expeditiously on macroeconomic reform could place at risk the successes achieved so far in the microeconomic areas. The most urgent need is fiscal reform, followed by improvements in the finance, foreign exchange, and commercial sectors. Specific recommendations and policy agenda which could be considered by the transitional economies of Asia are summarized in the paper.
- Comparative Economic Performance: TEAs vs. Eastern Europe
- Initial Conditions
- Sequencing of Policy Reforms
- Design of Policy Reforms
- Lessons and Agenda for Reform