Breakdown of the Transitional Model for the Passage from Socialism to Capitalism
Breakdown of the Transitional Model for the Passage from Socialism to Capitalism

Summary/Abstract: The article deals with transitional countries that, after initial successes, found themselves beset by a plethora of predicaments, among which massive foreign loans are only the tip of the iceberg of the exigencies they have to cope with. The author argues that due partly to subjective reasons and partly to inapt advice, there has occurred the deliberate devastation of manufacturing capacities and the indiscriminate capital influx that has on the one hand stimulated economic recovery, but on the other created considerable quandaries, so that the professed achievements are increasingly dubious. The author places the transitional countries’ foreign debts into the context of universal excessive borrowing in the world that exceeds 2,000 billion dollars. The author is trying to shed some light on this global problem by means of the theory of the “third way”, that has been gaining legitimacy in the debates on the future of world industry and society.

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