Joseph Stiglitz looks at different mostly institutional problems that have caused comparatively unsuccessful transition to the market economy in former Soviet states. He tries to explain why on average, these countries are worse off than they were before the transition in 1989. Transition has brought worse standards of living, greater inequality and fall of life expectancy while world life expectancy has risen by two years.1
Stiglitz thinks the success or the speed of transition depends on initial conditions, geography and opportunities every country face. And for example the state rich in its resources not always will be the best on its way to development.…
