Review article
https://doi.org/10.31337/oz.71.4.7
The Transition and its Results – Why the Transition from the Communist to the Democratic System of a Market Economy did not Meet Expectations
Predrag Haramija
orcid.org/0000-0002-1675-4996
; The Zagreb School of Economics and Management, Zagreb, Croatia
Đuro Njavro
; The Zagreb School of Economics and Management, Zagreb, Croatia
Abstract
The failure of the transition from the Communist to the Democratic political system to bring desired results in the economic domain was cause by five factors: (1) the inherited economic structure, i.e., the influence of politics on the economy; (2) the institutional heritage of Communism (huge and ineffective administration, bureaucratized approach, excessive norming and corruption; (3) poorly implemented privatization; (4) insufficient aid from the West, i.e., stereotyped approach by international organizations; (5) non-developmental aims of foreign investors in transition countries. Though many consider the transition to be complete with the entrance of Croatia into the European Union, Croatia has yet to create an economy based on real competition - a true free entrepreneurship balanced with social sensitivity.
Keywords
transition; economy; Communism; Democracy; market
Hrčak ID:
171031
URI
Publication date:
19.12.2016.
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