The restructuring process of formerly state-owned enterprises, including dismissal of excess labor, has been slow. Since the recovery of transition economies depends on the restructured sector, a convincing take-off has been delayed. Many arguments have been forwarded to explain the low...

Governments of transition economies are subject to a fiscal constraint (e.g. credit constraints). However, exaggerated fiscal discipline might feed into the structural adjustment process. The government designs and times the privatisation programme yet may find itself in a fiscal squeeze,...

Governments of transition economies are subject to a fiscal constraint (e.g. credit constraints). However, exaggerated fiscal discipline might feed into the structural adjustment process. The government designs and times the privatisation programme yet may find itself in a fiscal squeeze,...