This is the second part of the work on how economic policy of a developing country should change as it approaches the level of developed economies in terms of welfare (GDP per capita) and the quality of institutions. We focus on the impact of several policies to promote the catch up development:...

The realization of investments into the long-run growth rate of GDP requires the institutions of industrial policy, which would ensure search and implementation of its effective recipes. Such institutions and recipes are discussed in the article. Principles of effective governance for...

Failure of reforms is typical, and a success is extremely rare. This article analyzes the causes of this phenomenon. Many reform proposals are based on mistakable postulates concerning, in particular, interconnections of economic and political institutions. Reform often used as a tool for rent...

Efficiency of privatization depends on the transformation cost and the quality of the state as well as the quality of the market. An analysis of these and some other factors allows to explain diversity of privatization outcomes in different countries and to formulate general principles of the...

This paper compares various mechanisms of resource curse leading to a potentially inefficient use of resources; it is demonstrated that each of these mechanisms is associated with market imperfections and can be «corrected» with appropriate government policies. Empirical evidence seems to...

The paper argues that introduction of сontractual savings for housing (CSH) - bausparkassen and building and loan cooperatives - is an essential institutional stage in the process of mass mortgage market formation. An attempt to skip over it is a costly mistake and almost doomed to failure....

The article develops the innovation pause hypothesis. According to this hypothesis, the current crisis can be explained by the exhaustion of possibilities of existing general purpose technologies and by the delay of new ones, combined with overoptimistic expectations due to a long period of...