This paper examines the transition of economies of Albania and the Czech Republic, noting that their relative failure and success could have been predicted by academic literature. Financial intermediation theory predicted the rise of independently created mutual funds in the Czech Republic, while similar intermediation literature related to monitoring (or the lack thereof) predicted the develop...

Workers in Transition Theoutlookisbrightfor transition economies that are fully embracing market-based Michal Rutkowski reform, including appropriate, coherently applied labor policies. In other transition economies, a mix of patemalism and populism could produce partial, timid reform that makes them increasingly unproductive and corrupt. Workers will suffer tremendously in countries without cr...