Authored by: Jeffrey Miller

Handbook of the Economics and Political Economy of Transition

Print publication date:  April  2013
Online publication date:  May  2013

Print ISBN: 9780415591126
eBook ISBN: 9780203067901
Adobe ISBN: 9781135080877


 Download Chapter



A major difference between capitalism and socialism is the ownership of non-labour productive resources. Before the transition began, the state owned most of the non-labour productive inputs in the Communist economies. Since a central feature of capitalism is the private ownership of productive resources, the ownership of these non-labour assets needed to be transferred into private hands. While there were examples where state-owned companies had been privatized in Western capitalist economies before the transition began, there had never been a privatization programme of the magnitude and scope that was required if the former Communist countries were to achieve the transition to capitalism.

Search for more...
Back to top

Use of cookies on this website

We are using cookies to provide statistics that help us give you the best experience of our site. You can find out more in our Privacy Policy. By continuing to use the site you are agreeing to our use of cookies.