Partly developed countries, like all countries, are seeking to grow their economies. Discuss at least one example of a country that tries a rapid transition to a market political economy and one that transitioned slowly, and what methods they took.

Question

What will be an ideal response?

Answer 1

An ideal answer should include:
1. Rapid transitioning countries include: Turkey (rapid transition to a market political economy, with the strong support of the IMF and World Bank; implemented neoliberal economic reforms, such as reducing or eliminating subsidies for certain key sectors (such as agriculture), ending import substitution policies, and focusing on export promotion and free markets), Albania, Poland, and Russia (in these countries, central planning was abandoned, and most state-owned enterprises were sold to private actors (privatized) or shut down).
2. Slowly transitioning countries include: Malaysia, Chile, and China. The strategy to achieve prosperity was to move their economies slowly in the direction of neoliberal economic policies, such as: investing in education and technology development, growing public-sector employment, and investing in entrepreneurial training, as well as selling off state enterprises, privatization of government services, and deregulation.