An alternative theoretical framework for the state-economy interactions in transforming economies

ABSTRACT

This paper is built on the premise that frameworks of representation and worldviews are important for reflection and decision in economic policymaking, becoming more important as the stakes are high and the future is uncertain, as in Central and East European countries. There appears to be a growing feeling of discrepancy between the errors that were made, though based on a rather unified body of scientific economic theory, and differing views advocating more pragmatism and less overconfidence in economic analysis. The latter however are scattered and suffer from the absence of a unified theoretical framework although sharing several basic features which are not perceived. This paper attempts to reflect on such alternative.

KEYWORDS:
Structural change; economic development; economic planning