One of the main obstacles for successful economic development is the formation of institutional traps, inefficient yet stable norms of behaviour. Domination of barter exchange, arrears, corruption and black market activities are examples of institutional traps that have hampered reforms in...

Two myths have harmed many economies throughout the world. One is the theory of absolute advantage of central planning over the market mechanism, and the other is the belief that efficient markets develop spontaneously and quickly enough if appropriate economic legislation is established....

The Theory of Reform is a comparatively new branch of economic theory that studies processes of purposeful change of economic institutions. In the paper, we outline corresponding problems, and present some of the most important results of the Theory of Reform. Sources of reform costs as well as...

This study explores a problem of elaboration of a Manual For Reformers to facilitate planning and realization of efficient transformations of economic institutions. The first attempt to create such a manual, so called «Washington Consensus», is analyzed in detail. An alternative system of...