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 9: Neoclassical Economics, New Institutionalism and the Eastern European Economic Reform Experience

Paul Dragos Aligica and Anthony J. Evans

Subjects: economics and finance, austrian economics

Extract

The image of an Eastern European landscape of economic ideas homogenized, stalled and held up under the spell of Western economics has a twin: the image of a rigid and unchanged Western dominant paradigm – the notion of an unmovable, Olympian neoclassical economics, that has reached a stage of mature invulnerability and scientific rectitude. Yet, a closer look at the conceptual and theoretical dynamics set into motion by the encounter between the neoclassical paradigm and the Eastern Europe reform experience after 1989 tells a different story. The limits of policies and approaches inspired by neoclassical economics seem to have invited a challenge from new perspectives. The most influential of them was the so-called ‘new institutionalism’. And it may be the case that the rise to preeminence of the new institutionalism as a potential challenger to the supremacy of the neoclassical paradigm both in East and West could be in the end the most significant epistemic outcome of the reform experience. A very notable episode in the history of economic thought may thus be taking shape: After replacing Marxism in Eastern Europe, neoclassical economics comes to face a paradigm challenge mounted from a perspective that was reinforced and inspired by the accumulated lessons drawn from the encounter between the neoclassical views and the realities of transition. This chapter explores this neglected but intriguing facet of the Eastern European social and intellectual experience. The fact that Western neoclassical economics ideas were able to take over rapidly in Eastern Europe,...

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