Elements of the Theory of Reforms

Reform theory is a relatively new branch of economic theory that studies the processes of targeted change in economic institutions. This monograph outlines the range of relevant problems and presents some of the most important results of reform theory. It develops a view of reform as a process of constructing an institutional trajectory that satisfies certain requirements, and proposes methods for constructing promising trajectories. Different reform strategies are compared, the problems of transplanting economic institutions are considered, institutional dysfunctions, the mechanisms of formation and evolution of institutional traps, and the causes of transformational decline are explored.

The processes of price stabilization, privatization, and labor market reform are examined, and the impact of democratization on economic growth is studied. Particular emphasis is placed on examining models describing the transformation of institutions in Russia and other former socialist countries.