Alice Amsden

Recent Articles

Beyond Shock Therapy: Why Eastern Europe's Recovery Starts in Washington

Laissez faire was planned.
Karl Polanyi, The Great Transformation,1944

The collapse of Communism in Eastern Europe demonstrated the failure of a command economy. The subsequent crash in output and employment induced by "shock therapy" has suggested the limits of laissez faire. Rather than replace the excesses of communism with excesses of capitalism, it is time to lay extreme ideology aside and begin the practical work of economic reconstruction. Even more than in the West, which was viable capitalist institutions, this enterprise requries a mixed economy.

East Asia's Challenge  to Standard Economics

Have successful developing countries thrived by conforming to the laws of the free market, or have they prospered by defying them?