Radosevic, S; (1997) Strategic policies for growth in post-socialism: theory and evidence based on the case of Baltic states. Economic Systems , 21 (2) 165 - 196.

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Abstract

While the `market failure' argument is an insu cient theoretical and practical ratio- nale for policy intervention in post-socialism, the notion of strategic polices for growth is more suitable to capture the policy context of post-socialist economies. A crucial element of this notion is the strategic technology policy which contains three important aspects outside the mainstream policy perspective. First, it departs from the policies based on the notion of market failure. Second, it identi es weak administrative capa- bilities in post-socialist economies and tries to conceptualize a policy approach which takes such weaknesses into account. Third, it recognizes the importance of di erences between industrial sectors, thus denying the usefulness of across-the-board policy solu- tions. Based on the above-introduced concept of strategic technology policy, the paper develops a policy framework which addresses the issues of industry and technology restructuring in post-socialist economies and applies it to the Baltic countries.

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