[Transformation from the centrally planned economy to a market economy: definitions, tasks, strategies]
1996
Goetz, R. (Bundesinstitut fuer ostwissenschaftliche und internationale Studien, Koeln (Germany))
Transformation is a social change, which is not following an evolutionary but a guided path. The transformation of the post-socialist societies includes changes in economy as well as in society contrary to historic predecessors. The aim of economic transformation is the establishment of a market economy. Transformation concentrates on the transition of existing or creation of new formal institutions, which constitute the heart of the economic system. Hereby the state has to take over the initiative, but at the same moment has to retreat from steering the economy in the old way. During the transformation of the economic system, many interdependencies and contradictions will emerge, which can be solved only by way of compromise. In an ideal transformation, a democratically elected government follows a well devised plan and is supported by an unselfishly acting bureaucracy. In reality national movements, the occupation of the national wealth by established elites and structural moves in the economy frustrate the ideal model.
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