Transition to the Market: Some Implications for Human Resource Development

Abstract

The transition from central planning to market forms of co-ordination can be expected to have some positive implications for human development.¹ In particular, it can be expected to liberate individual initiative and to foster entrepreneurship through the provision of new incentives and the opening up of new opportunities. It also promises more flexibility in the allocation and reallocation of human resources to the most productive uses; and more regard for efficiency and quality in production. This obviously has positive implications for international competitiveness. The transition is also widely expected to provide a good foundation for democratic rights by promoting decentralization of decision-making. and reducing the role of the state.²