Abstract 

V

List of Tables 

IX

List of Figures

XI

1.      Introduction

1

2.      Globalization and Postsocialist Transformation

4

3.      Transitional Recession and the Great Depression of the 1990s

7

4.      Different Paths of Contraction, Recovery, and Growth

16

5.      Policy Response and the Role of Institution-Building

27

6.      Market Imperfections and the New Role of Government

31

7.      Small versus Big Government and the Quest for Equitable Growth

40

8.      External Shocks and the Catching-up Process

51

9.      Passive Scenarios and Active Policies for the Twenty-First Century

59

10.     Policy Conclusions 

80

Statistical Appendix: From Growth Cycles under a Centrally

Planned Economy to Business Cycles under a Market

Economy, 1950–2004

85

References

89

Index 

 94