“Market Failure” Emphasis “Government Failure” Emphasis Figure 3. Alternative Notions of Rational Post-Socialist Transition: Which Path to Rationality? Which Market Endpoint? “Market Failure” Emphasis “Government Failure” Emphasis The Rational Market Economy (Appropriately Governed by Capable, Extensive, Progressive State) The Rational Market Economy (Laissez Faire System Free of All but Most Minimalist State) Efficiency Efficiency The Malfunctioning Market Economy (Market Failure Due to Insufficient State-Supplied Regulation and Monitoring) The Malfunctioning Market Economy (Government Failure Due to Excessive State Intervention and Over-Regulation) The Planned Economy The Planned Economy Time Time