The Perilous Road to the Market

From: Rakesh Bhandari (rakeshb@STANFORD.EDU)
Date: Sun Jun 29 2003 - 20:00:54 EDT


very helpful, fact-filled overview. controversial.
rb

The Perilous Road to the Market
Prem Shankar Jha

Product Details:
ISBN: 0745318517
Format: Paperback, 256pp
Pub. Date: May 2002 Publisher: Pluto Press


ABOUT THE BOOK

  From the Publisher
This book examines the economic transformation three of the largest
countries in the world - Russia, China and India - and explores the
very different strategies adopted by them. Jha argues that the
process of transformation is highly unpredictable, and traces the
problems each country has faced to its economic history and the
political system it inherited. Conventional analyses of economic
transition are all based upon a single macro-economic model developed
by the World Bank and IMF, dubbed the Washington consensus. The
premise of the Washington consensus is that markets are a natural
extension of man's propensity to ' truck and barter', and that one
has only to remove the state from the sphere of the economy for a
market economy to emerge full-blown in a very short time. / This book
argues that the model is excessively simplistic because a market is
not a natural but a man-made institution. Both in Russia and less
obviously in China, the pace of reforms outstripped the creation of
the market economy. India, by contrast, had the shortest way to go
but, for lack of political will, is taking the longest time to get
there. Jha concludes that the strategy countries adopt, and the speed
at which they attempt to make the transition, depends upon the
position they occupy at the start of the transformation from
non-market to market economies. There can be no single strategy or
set time frame for economic transition, and the state has a crucial
role to play in calibrating the transition.


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