Question

Do you think reform could have worked in the Communist world, while still remaining Communist? How?

Answer 1

Yes, I think the economic reforms alter the benefits and costs of political action in communist countries. Although the rapid reformers faces a shorter recessions but are recovered much earlier compared to the gradual reformers. It can also result to higher incomes and more political freedom. Also the reformers receive high foreign direct investment, which stimulates more employment and growth. Moreover causes lower poverty rates and lower rates of income inequality in the Communist world. When political elites who are committed to liberalization in economy are also committed to subsequent institutional development the reforms can being improvement in the country