Raising Household Energy Prices in Poland: Who Gains? Who Loses?

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the autbors. They do not necessarily represent the view of the World Banke, its Executive Directors, or the countries they represent.

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The Unofficial Economy in Transition

Johnson¹,

Kaufmann²,

Shleifer³

1997

Brookings Papers on Economic Activity

895

683

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The Unofficial Economy in TransitionTHE ECONOMIES of eastern Europe and the former Soviet Union (FSU) escaped communism with a heavy burden. When central planning collapsed, they continued to suffer from widespread political control of economic activity. Such politicization had to be reduced significantly for small business formation and growth to begin. In recent years, some of these countries have succeeded much better than others in replacing political control with functioning market institutions. As this paper shows, they are also the countries that have had the healthiest public finances, the smallest unofficial economies, and the best records of growth.The politicization of economic life can usefully be thought of as the exercise by politicians of control rights over business. ' Such rights may include regulatory powers over privatized and private firms, the ability to regulate and restrict entry, control over the use of land and real estate that private businesses occupy, the determination and collection of taxes For helpful comments, we thank

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Raising Household Energy Prices in Poland: Who Gains? Who Loses?

Cited by 3 publications

References 4 publications

Integrating the Unofficial Economy into the Dynamics of Post-Socialist Economies: A Framework of Analysis and Evidence

Integrating the Unofficial Economy into the Dynamics of Post-Socialist Economies: A Framework of Analysis and Evidence

What Affects the Russian Regional Governments' Propensity to Subsidize?

The Unofficial Economy in Transition

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