i. The Passive-Aggressive reaction: occurs mainly when the market players have no access to more legitimate and aggressive venues of reacting to their predicament or when they are predisposed to suppressing of aggression (or when they elect to not express it). The passive-aggressive reactions are "sabotage"-type reactions: slowing down of the work, "working by the book", absenteeism, stealing from the workplace, fostering and maintaining bureaucratic procedures and so on;

j. The inability to postpone satisfaction – The players regress to a child-like state, demanding immediate satisfaction, unable to postpone it and getting frustrated, aggressive and deceiving if they are required to do so by circumstances. They engage in short term activities, some criminal, some dubious, some legitimate: trading and speculation, gambling, short-termism.

The results are, usually, catastrophic: A reduction in economic activity, in the number of interactions and in the field of economic potentials (the product of all possible economic transactions). An erosion of the human capital, its skills and availability. Brain drain – skilled people desert, en masse, the fragmented economic system and move to more sustainable ones. Resort to illegal and to extra-legal activities Social and economic polarization. Interethnic tensions and tensions between the very rich and the very poor tend to erupt and to explode.

And this is where most countries in transition are at right now. To a large extent, it is the fault of their elites. Providing orientation and guidance is supposed to be their function and why society invests in them. But the elites in all countries in transition – tainted by long years of complicity in the unseemly and the criminal – never exerted moral or intellectual authority over their people. At the risk of sounding narcissistic, allow me to quote myself (from "The Poets and the Eclipse"). Replace "intellectuals of the Balkan" with "intellectuals of the countries in transition":

(Article written on October 31, 1999 and published November 15, 1999

in "Central Europe Review" volume 1, issue 21)

[Return]

[The Poets and the Eclipse]

Poets in Somalia hold an inordinate sway over the indigenous population. They sing the praises of war with the same alacrity and vehemence that they invest in glorifying peace. And the population listens and follows these dark skinned pied pipers. Lately, they have been extolling peace and peace prevails in Somaliland and the other state-like enclaves in this tortured shadow of a country.

In the evening we celebrate a birthday party under deciduous trees, in floodlit darkness, somewhere in the Balkans. The voices of industrious crickets, of late chirping birds, of the cesma – the fabled Balkan water fountain – all intermingle to produce an auditory magic. A famous satirist and poet catapults slurred, vitriolic diatribes at a guest from the West that I brought with me. His words ring inebriatedly authentic. He need not learn the language, he exclaims, of people without a spirit and without a mind. He is referring to English. His country – he triumphantly shrills – is the best, an island of civilization among the barbarians at the gates. He enumerates his neighbours and proceeds to describe in vivid, gut wrenching detail what he would do to them all, given the opportunity. "The rotten core of our national apple" – a melancholy contribution from a professor of psychiatry.