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The European Journal of Comparative Economics Vol. 3, n. 2, pp. 263-288 ISSN 1824-2979 Government-Business Relations and Catching Up Reforms in the CIS Alexander Libman 1 Institute of Economics of the Russian Academy of Sciences Abstract The paper addresses the problem of similarities and divergence of transition paths at the later stage of transition in the countries of the Commonwealth of Independent States. The main aim is to clarify the influence of specifics of government-business relations on economic reforms carried out at the later stage of transition in countries, which have been relatively less successful during the earlier transition. The paper discusses potential channels of influence of institutional organization of government-business relations on economic reforms and compares government-business relation models and paths of transition in Russia, Kazakhstan and Ukraine. JEL classification: D72, P26, P30. Keywords: Post-Soviet economies, catching up reforms, institutional trap, government-business relations 1. Introduction An evident result of the past fifteen years of economic transition of the former Socialist countries is a strong divergence of paths of institutional development of the Central and Eastern Europe (CEE), including the Baltic countries, and other former Soviet republics, which are currently members of the Commonwealth of Independent States (CIS). While the EU enlargement in 2004 documents significant success of the majority of the first group, the second group generally failed to establish stable market economies. Although most CIS states created the formal framework for markets (including private property, corporate and contract law and similar institutions) and therefore completed the basic tasks of system transformation (Colombatto, 2002), there are still important problems with both completeness and consistence of these formal norms and, more important, with their implementation and enforcement, as well as with corruption, deficit of trust and low quality of governance.
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