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Disorganization or Self-Organization : The Emergence of Business Associations in a Transition Economy

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dc.contributor.authorRecanatini, Francesca
dc.contributor.authorRyterman, Randi
dc.date.accessioned2014-08-26T20:02:36Z
dc.date.available2014-08-26T20:02:36Z
dc.date.issued2001-01
dc.description.abstractThe transition from plan to market provides a rare opportunity for insight into the endogenous development of economic institutions. Economic activities under the Soviet regime were coordinated by a central authority. Soviet coordinating mechanisms were disrupted during the transition period, leading to an increase in firms' transactions costs. Blanchard and Kremer (1997), among others, emphasize the negative impact of this "disorganization" on output behavior at the beginning of the transition. Although their argument is correct, the authors believe that their work and similar analyses stop short of fully characterizing the transition by concentrating only on reform's disruptive effects. The authors start where the earlier work ends, examining the business associations that emerged spontaneously in response to the transition's challenges. They provide empirical evidence that institutions that help coordinate production and trade emerge spontaneously in a widely "disorganized" environment. Using a largely unexplored set of firm-level data, they document the emergence of business associations at the beginning of the transition and provide evidence that these new coordinating institutions mitigated the initial decline in output. Building on the growing literature on complexity and transaction costs, they interpret the emergence of these informal institutions as the firms' rational attempt to coordinate activities in a decentralized economy. In other words, the creation of complex organizations such as associations is the spontaneous result of a natural tendency in every system to create order at the edge of chaos. Business associations are more likely to emerge where there is disorder to provide their members with stability, coordination, and the information needed to improve performance.en
dc.identifierhttp://documents.worldbank.org/curated/en/2001/01/891733/disorganization-or-self-organization-emergence-business-associations-transition-economy
dc.identifier.doi10.1596/1813-9450-2539
dc.identifier.urihttps://hdl.handle.net/10986/19713
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 2539
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO INFORMATION
dc.subjectBUSINESS ASSOCIATION
dc.subjectBUSINESS ASSOCIATIONS
dc.subjectCENTRAL PLANNING
dc.subjectCENTRALLY PLANNED ECONOMIES
dc.subjectCONTRACT ENFORCEMENT
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEQUILIBRIUM
dc.subjectEXCESS SUPPLY
dc.subjectGDP
dc.subjectGOVERNMENT INSTITUTIONS
dc.subjectGOVERNMENT SUBSIDIES
dc.subjectINCOME
dc.subjectINNOVATION
dc.subjectINSTITUTIONAL ARRANGEMENTS
dc.subjectINSTITUTIONAL DEVELOPMENT
dc.subjectINTERNATIONAL TRADE
dc.subjectMACROECONOMIC POLICY
dc.subjectMANAGERS
dc.subjectMARKET ECONOMY
dc.subjectNETWORK EXTERNALITIES
dc.subjectORGANIZATIONAL STRUCTURE
dc.subjectPRODUCT MARKETS
dc.subjectPUBLIC SECTOR
dc.subjectSOCIAL ACTIVITIES
dc.subjectSTRATEGIC COMPLEMENTARITIES
dc.subjectTRANSACTION COSTS
dc.titleDisorganization or Self-Organization : The Emergence of Business Associations in a Transition Economyen
dspace.entity.typePublication
okr.crossref.titleDisorganization or Self-Organization? The Emergence of Business Associations in a Transition Economy
okr.date.disclosure2001-01-31
okr.date.doiregistration2025-04-10T09:26:51.692003Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2001/01/891733/disorganization-or-self-organization-emergence-business-associations-transition-economy
okr.globalpracticeGovernance
okr.globalpracticeHealth, Nutrition, and Population
okr.guid719181468757516898
okr.identifier.doi10.1596/1813-9450-2539
okr.identifier.externaldocumentum000094946_01021007442964
okr.identifier.internaldocumentum891733
okr.identifier.reportWPS2539
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/03/01/000094946_01021007442964/Rendered/PDF/multi_page.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryRussian Federation
okr.themeFinancial and private sector development :: Regulation and competition policy
okr.themeFinancial and private sector development :: Other financial and private sector development
okr.topicPublic Institution Analysis and Assessment
okr.topicEconomic Theory and Research
okr.topicHealth Monitoring and Evaluation
okr.topicEnvironmental Economics and Policies
okr.topicGovernance::Governance Indicators
okr.topicHealth, Nutrition and Population
okr.unitPoverty Reduction and Economic Management Sector Unit, Europe and Central Asia Region
okr.volume1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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