ABSTRACT
The paper looks at the transition to a capitalist market economy from a very specific vantage point. The authors look in the first section of the paper at transition costs that result from time profile of the transition process and resultant problems of incomplete rules and weak enforcement of these rules (weakness of formal constraints). They posit that although these costs will be rather high, the difference of speed between liberalization and institution-building does not answer the question how high these costs will be.
