Purpose -The paper investigates the utility of economic theory for post-Communist economic transformation. It serves to explain the main reasons for market reform failure in different post-Communist countries. Design/methodology/approach -A literature review suggests that after the collapse of the Communist system there was no economic theory of transition to market. Whenever one considers the transition of post-Communist economies to a market system (which, in fact, is nothing but post-Communist transition to capitalist economies), it has to be placed on record, as this kind of transition has no precedent in history. Findings -The main mistake of gradualists stems from their overlooking some very important conditions for successful transition: political guarantees and internal assets for reforms. And the success of shock therapy rests on the paradox, "the worse, the better". Originality/value -There is as yet no special economic theory of post-Communist transformation and it is just developing. This paper helps one to understand the main features of shock therapy and gradualism for designing the framework of such a theory. It is geared towards researchers and students interested in the theoretical aspects of the post-Communist economic transition to markets.

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The paper offers a new view of the process of post-Communist transformation of an economy. The collapse of the Communist regime had the result that with rare exceptions all goods produced in these countries were incompatible with international standards due to low quality and/or high prices. The economy of that type can be referred to as``dead'' economy, or`n ecroeconomy''.``Routine'', which has been deeply rooted in the command economy over many decades, is the reproductive base of necroeconomy. The``routine'' which reproduces necroeconomy depends, inter alia, on the behavior of the homo transformaticus, who in the realm of entrepreneurship assumes a title of``post-delets''. The end of necroeconomy is the only true indicator of the end of post-Communist transformation.

According to communist literature socialism has been established in the former Soviet Union and other communist countries. Demonstrates that the system of any of these countries according to Marxist‐Leninist ideology can be classed as state monopolistic feudalism. Among Soviet Communist values egalitarianism holds a very special position, although it is a more general phenomenon and can also be found in a capitalist system. Reveals in post‐communist economic reforms, and particularly in the process of privatization, the idea of egalitarianism is very popular. According to this view the government has to give everyone equal opportunities. Such an approach resulted in inflation, a marked increase in the difference between rich and poor, and the abolition of equal opportunities.

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