The Neoliberal Revolution in Eastern Europe

The Neoliberal Revolution in Eastern Europe

Economic Ideas in the Transition from Communism

New Thinking in Political Economy series

Paul Dragos Aligica and Anthony J. Evans

This unique book develops two different but related research agendas: the study of the spread of ‘neoliberalism’ – as seen from the perspective of Eastern European post-communist evolutions; and the study of Eastern European transition – as seen from an ideas-centred perspective. It challenges a series of misunderstandings and myths about the spread of neoliberal economic ideas in Eastern Europe and offers a clearer understanding of progress since market reform began.

Chapter 1: Economic Ideas: Demarcations and Schools of Thought

Paul Dragos Aligica and Anthony J. Evans

Subjects: economics and finance, austrian economics


Many discussions of the profound transformation taking place in Western Europe, Latin America and Eastern Europe use implicitly or explicitly models, conjectures and theories in which ‘neoliberalism’ represents a key variable. Sometimes seen as an independent variable, sometimes as a dependent one, sometimes introduced as a ‘key variable’ and sometimes as part of an analysis of the facilitating conditions, the recourse to the ‘neoliberal’ factor is more often than not a significant theme. Yet, the visibility of the concept is misleading. In reality its use hinders rather than helps the analytical effort: despite its salience, it remains an under-conceptualized and under-operationalized notion. As Ray, Denzau and Willett (2007, p. 21) put it, neoliberalism ‘is a term often used in political economy very broadly and vaguely to refer to market-oriented policy ideas and strategies in the second half of the twentieth century’. But besides that, ambiguity and confusion reign. Indeed something called ‘neoliberalism’ is invoked in many studies, but especially when it comes to Eastern Europe, somehow manages in most cases to slip and escape a clear conceptualization. The unit of observation and the specification of the phenomenon in question vary from author to author. Authors sometimes employ it to refer to theories and schools of thought (such as ‘neoclassical economics’, ‘Washington consensus’) and sometimes they add an ideological overtone (as in ‘market ideology’, ‘market fundamentalism’); in some cases they focus their approach on specific policies or public policies (‘privatization’, ‘deregulation’, ‘stabilization’), while in other cases they...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information