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Comments on papers prepared in the World Bank about socialist countries (Inglês)

The first part of the paper analyzes some important common characteristics of socialist economies: chronic shortages in the markets for goods, labor and capital; the limited role of prices and the low price responsiveness of economic units; weak financial discipline and the accountability of State-owned firms; investment and import hunger and forced exports; and the phenomenon of extensive forced growth. The paper gives an assessment of how these characteristics of socialist economies are reflected in the reports prepared by the World Bank. The second part discusses some of the dilemmas which the reform process is facing in socialist countries: the conflict between short-term macro-adjustment and long-term institutional change, and the time-phasing of the reform measures.

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