inequality of opportunity was the initial effect of the transition from command to market economies in eastern europe.
inequality of opportunity was the initial effect of the transition from command to market economies in eastern europe.
what was the initial effect of the transition from command to market economies in eastern europe?
inequality of opportunity
inequality of opportunity was higher in the transition economies of central and eastern europe and central asia than in some other developed economies in western europe (except france, where inequality of opportunity was relatively high). the highest inequality of opportunity was found in the balkans and central asia. in terms of legal regulations and access to education and health services, inequality of opportunity related to gender was low in europe and central asia but medium to high in respect of labour practices, employment and entrepreneurship and in access to finance. in central asia women also experienced significant lack of access to health services, as was the case in arab countries. while many transition economies performed well with respect to primary and secondary education, and matched that available in many other developed economies, they were weaker when it came to training and tertiary education.
transition economy
peter a. hall and david soskice argued that modern economies have developed two different forms of capitalism: liberal market economies (or lme) (e.g. the united states, the united kingdom, canada, new zealand and ireland) and coordinated market economies (cme) (e.g. germany, japan, sweden and austria). those two types can be distinguished by the primary way in which firms coordinate with each other and other actors, such as trade unions. in lmes, firms primarily coordinate their endeavors by way of hierarchies and market mechanisms. coordinated market economies more heavily rely on non-market forms of interaction in the coordination of their relationship with other actors (for a detailed description see "varieties of capitalism"). these two forms of capitalisms developed different industrial relations, vocational training and education, corporate governance, inter-firm relations and relations with employees. the existence of these different forms of capitalism has important societal effects, especially in periods of crisis and instability. since the early 2000s, the number of labor market outsiders has rapidly grown in europe, especially among the youth, potentially influencing social and political participation. using varieties of capitalism theory, it is possible to disentangle the different effects on social and political participation that an increase of labor market outsiders has in liberal and coordinated market economies (ferragina et al., 2016). the social and political disaffection, especially among the youth, seems to be more pronounced in liberal than coordinated market economies. this signals an important problem for liberal market economies in a period of crisis. if the market does not provide consistent job opportunities (as it has in previous decades), the shortcomings of liberal social security systems may depress social and political participation even further than in other capitalist economies.
capitalism