After the fall of the Soviet Union, former communist bloc countries had a choice, transition into capitalism slowly or rapidly.
Marian Tupy writes:
True enough, “big-bang” reforms were often chaotic and led to an increase in corruption. But, after 25 years, it is obvious that countries, which adopted extensive reforms early on, performed much better than countries that adopted a more gradual approach. The former grew richer and more democratic, while, at the same time, experiencing less impoverishment and a smaller increase in income inequality.
The latter performed worse in all relevant measures of economic, social and democratic performance. That is because post-communist governments were captured by special interests that were interested in rent-seeking, not economic and political reforms. These findings are crucial, because of the continued misperception that rapid transition from communism to capitalism has caused untold human suffering in ex-communist countries. They might also be of benefit to future reformers in countries from Cuba and Venezuela to Zimbabwe and North Korea.
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