Abstract

The relationship between state enterprise reform and macroeconomic policies forms the crux of the most important issues relating to the economies that are trying to move from centrally planned to market-based systems. I will talk about this relationship mainly in the context of the countries of Eastern Europe and the former Soviet Union (FSU). The topic is of considerable interest in this setting, because the problems of state enterprises in countries where the state sector dominates the productive processes differ from the problems of state enterprises in countries where the state sector plays a lesser role. The linkages between enterprise reform and macroeconomic policies in an economy with some two hundred thousand enterprises that account for 95–99 percent of its economic output likewise differ from the linkages in an economy where several dozen enterprises account for 20–40 percent of output.

Proceedings of the Seminar Coordination of Structural Reform and Macroeconomic Stabilization, Washington, D.C., June 17-26, 1993