Figure 3. Alternative Notions of Rational Post-Socialist Transition: Which Path to Rationality? Which Market Endpoint?

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Figure 3. Alternative Notions of Rational
Post-Socialist Transition Which Path to
Rationality? Which Market Endpoint?
Market Failure Emphasis
Government Failure Emphasis
The Rational Market Economy (Appropriately
Governed by Capable, Extensive, Progressive State)
The Rational Market Economy (Laissez Faire System
Free of All but Most Minimalist State)
Efficiency
Efficiency
The Malfunctioning Market Economy (Market Failure
Due to Insufficient State-Supplied Regulation and
Monitoring)
The Malfunctioning Market Economy (Government
Failure Due to Excessive State Intervention and
Over-Regulation)
The Planned Economy
The Planned Economy
Time
Time