Fred Witthans on Svetozar (Steve) Pejovich's Understanding the Transaction Costs of Transition : It's the Culture Stupid

By Witthans, Fred

Book Id: WPLBN0000685606
Format Type: PDF eBook
File Size: 205,954 KB.
Reproduction Date: 2005

Title:	Fred Witthans on Svetozar (Steve) Pejovich's Understanding the Transaction Costs of Transition : It's the Culture Stupid
Author:	Witthans, Fred
Volume:
Language:	English
Subject:	United Nations., United Nations. Centre for Economic and Social Information, AID project impact evaluation report
Collections:	United Nations Library International Aid and Funding Collection
Historic Publication Date:
Publisher:	United Nations Library International Aid and Funding


Citation APA MLA Chicago Witthans, F. (n.d.). Fred Witthans on Svetozar (Steve) Pejovich's Understanding the Transaction Costs of Transition : It's the Culture Stupid. Retrieved from http://gutenberg.cc/

Description
Excerpt: As Professor Wagner so eloquently stated in his comments, Professor Pejovich's paper is an important contribution for understanding the difference in progress that nations are making in the transition from socialism to capitalism. In transition states, the prevailing culture favors collectivism, egalitarianism, emphasis on extended family, and shared values. Such a culture supports an activist, paternalistic state. In contrast, a capitalist economy requires a culture of individualism that encourages the behavior based on the principles of self-interest, self-determination, self-responsibility and free market competition. In moving away from socialism and towards capitalism some states have incurred greater transaction costs than others due to the gap between informal institutions (culture) and formal institutions of capitalism. Hence some countries have made more progress than others have in the transition. Professor Pejovich's examination of Central and Eastern European countries supports his thesis.