Andrei Shleifer of Harvard draws his list of lessons learnt from transition:
- The main lesson of this experience is for reformers not to count on an immediate return to growth. Economic transformation takes time.
- have faith – capitalism really does work.
- a reformer should fear not populism but capture of politics by the new elites.
- do not over-plan the move to markets, but, more importantly, do not delay in the hope of having a tidier reform later.
- you cannot teach an old dog new tricks, even with incentives.
- This experience bears a profound lesson for reformers, who are always intimidated by the international financial community: do not panic about crises; they blow over fast.
- middle-income countries eventually slouch toward democracy, but not nearly in as direct or consistent a way as they move toward capitalism.