From Triumph to Crisis: Neoliberal Economic Reform in Postcommunist Countries

"Competing for Capital How Neoliberalism Prevailed in Post-Communist Countries The post-Communist countries were amongst the most fervent and committed adopters of neoliberal economic reforms. Not only did they manage to overcome the anticipated domestic opposition to 'shock therapy' and Washington Consensus reforms, but many fulfilled the membership requirements of the European Union and even adopted avant-garde neoliberal reforms like the flat tax and pension privatisation. Neoliberalism in the post-Communist countries went farther and lasted longer than expected, but why? Unlike pre-existing theories based on domestic political- economic struggles, this book focuses on the imperatives of re- insertion into the international economy. Appel and Orenstein show how countries engaged in "competitive signalling," enacting reforms in order to attract foreign investment.