1. “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