The majority of people living through the transition from planned, state-run economies to market economies say they are not living better now than in 1989, research by the EBRD and World Bank showed on Sunday.
Reuters reports on the new World Bank survey, highlighting the attitudes towards transitions in 29 countries. The full survey is available for free here.
As Eric Berglof notes in the foreword,
Ultimately, for transition to be declared a success, it should lead to a measurable improvement in people’s lives, with the principles of democracy, pluralism and the market economy deeply embedded in societies.
Has transition been a success in the region? The authors of the report note that there is definitely some nostalgia for the past, as only 30% believe that their household lives better today than in 1989. Yet, looking into the future, when asked whether their children will have a better life, 54% agreed that they will.
While the survey shows some support for values of democracy and market economy, the authors still note that
The results show that many people remain unconvinced by the virtues of markets and democracy. Around 10 per cent of respondents support a combination of a planned economy and authoritarian government, and 20 per cent of people believe that the form of political and economic system does not matter for them.
Education and health care remain two of the more underinvested public sectors, according to the survey. There is a strong sense of distrust in political institutions across the region, including the government, parliaments, and political parties. And, not surprisingly, corruption remains one of the priority issues – the one people often feel hopeless about.
The worst region in terms of its experience with the transition process? Looking at many references throughout the report it seems to be South-Eastern Europe.
Yet, despite some discouraging findings, the authors note that many young people remain optimistic about democracy and growth prospects. Eric Berglof:
I believe the most important positive message in the results presented here is the sense of optimism for the future, particularly among younger people. It is true that many people suffered severe hardship, especially during the early years of transition when most economies went through a deep recession. But despite this, only a minority of people, usually among the older and poorer members of society, would like to return to an authoritarian political system and a planned economy.
Still, I would like to see a follow up survey that takes a closer look at what do people actually understand by “the values of democracy and market economy.” Would it be unreasonable to expect some rather strong disagreements between the young people in many of these 29 countries?
Published Date: May 21, 2007