The article analyzes why many transitional economies have succeeded by pursuing policies that differed significantly from the radical economic liberalization that was credited for economic success in the countries of Central Europe, while many countries with liberal policies have not succeeded....

Transition economies are going through a process of changing the role of the state, allowing a greater role for the private sector. This is consistent with the market-oriented approach of the WTO. Remaining state agencies and enterprises will need to adapt their ways of doing business, including...