Growth and political change: Transition duration is critical
Caroline Freund, Melise Jaud 24 January 2013
The Arab world is undergoing a major political transition. The final outcomes of the changes are far from certain. Nevertheless, there have been and will continue to be economic consequences from the moves towards democracy. This column looks at 90 attempts at transition and finds that countries with rapid transitions, irrespective of whether they are successful or failed, experience swift recoveries and a long-run growth dividend of about one percentage point relative to pre-transition growth levels.
The Arab world is undergoing a major political transition. The final outcomes of the changes are far from certain in nations where they have occurred. The geographical spread of the changes is also far from clear at this point. Nevertheless, there have been and will continue to be economic consequences from the moves towards democracy (see Besley and Kudamatsu 2007).
Development Politics and economics
democracy, growth, transition, political change
The fear of being left behind
Erik Berglöf 02 August 2007
The “fear of being left behind” helped initiate and sustain reforms in the earlier phases of transition, but the same fear now jeopardises the sustainability of growth and institutional change in Eastern and Central Europe.
Central and Eastern Europe are catching up with the rest of Europe. Growth rates are higher than ever since transition started. Remarkable improvements over the last 15 years have moved institutions much closer to those of Western Europe. These striking transformations have been propelled by a widely shared desire to come “back to Europe.”
Development Europe's nations and regions
transition, EU accession