Many of the states of the former Soviet Union have experienced a dramatic collapse of output during transition, which has not yet been reversed in a sustainable way. The economics of disorganization, proposed by Blanchard (1997) and tested empirically by Blanchard and Kremer (1997), reasons that...

Section one of this paper discusses the problem of regulatory design in general terms, but with a special focus on economics in transition. Section two reviews problems of adjustment related to the telecommunications industry and the regulatory framework in which they are being addressed....