## The Transition Economies After Ten Years

_IMF Working Papers, February 1, 2000_

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## Bibliographic details
- Authors: Stanley Fischer, Ratna Sahay
- Published: February 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451844900.001

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### Authors and Publication
- By Stanley Fischer, Ratna Sahay
- February 1, 2000
- IMF Working Papers Series: Working Paper No. 2000/030
- Issue: 030; Volume: 2000; Pages: 44
- DOI: https://doi.org/10.5089/9781451844900.001
- ISBN: 9781451844900
- ISSN: 1018-5941

### Executive summary
- The paper summarizes the macroeconomic performance of the transition economies over their first decade of reform.
- It reviews: initial conditions confronting these economies; the reform strategy proposed a decade earlier; controversies that arose a decade ago.
- It accounts for widely different outcomes across countries by highlighting the role of:
  - exogenous factors, and
  - the macroeconomic and structural policies adopted by the countries.
- Core empirical conclusions:
  - Both stabilization policies and structural reforms, particularly privatization, contribute to growth.
  - The faster is the speed of reforms, the quicker is the recovery and the higher is growth.

### Key findings and analytical themes
- Initial conditions and reform strategy:
  - The paper reviews the diverse initial macroeconomic and structural conditions that transition economies faced.
  - It examines the reform strategy proposed a decade earlier and the controversies surrounding that strategy.
- Drivers of divergent outcomes:
  - Exogenous factors played a significant role in outcomes across countries.
  - The adoption and design of macroeconomic policies and structural reforms explain much of the variation in performance.
- Role of specific policies:
  - Stabilization policies are linked to better macroeconomic performance.
  - Structural reforms, with an emphasis on privatization, are associated with higher growth.
  - Speed of reforms is positively correlated with the speed of recovery and magnitude of growth.

### Policy implications and recommendations
- Pursue stabilization policies to support macroeconomic recovery and growth.
- Implement structural reforms, with priority on privatization where appropriate, to enhance growth prospects.
- Accelerate the pace of reforms where feasible, as faster reform implementation is associated with quicker recoveries and higher growth.

### Subject areas and keywords
- Subject: Economic sectors, Fiscal policy, Fiscal stance, Government debt management, Inflation, Macrostructural analysis, Prices, Privatization, Public financial management (PFM), Structural reforms
- Keywords: Baltics, CEE country, countries in the CEE, exchange rate, Fiscal stance, Government debt management, Inflation, market economy, OFSU country, Privatization, Structural reforms, transition economy, WP

*IMF Working Paper No. 2000/030 — Stanley Fischer and Ratna Sahay, February 1, 2000.*

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## Content in this bundle

- **The Transition Economies After Ten Years - WP/00/30**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-transition-economies-after-ten-years-3463_