In cases where strong political leadership prevailed and was able to institutionalize concrete steps, constructive reform efforts had a better chance of assuming momentum. Conversely, political liberalization can be used in certain reform contexts to increase the acceptance of basic economic changes. In some cases, however, political liberalization and economic reform are a volatile combination when launched simultaneously. The Soviet Union is an extreme case where the government was unprepared for the consequences of political reform. This resulted in stalled economic reform.
Political corruption remains an obstacle to reform.
In several regions, modern business sectors, labor and government bureaucracies make up the cornerstone of newly-forged social contracts. Paradoxically, newly liberalized markets often require new and different types of rules and regulations. Reforming countries rarely have experience working with monopolies or liberalized financial markets and require external assistance. Sequencing and Reform Choices Countries have the best chance of succeeding if they move forcefully on key fronts. Currency readjustment, liberalization of the trade environment, and an opening up of foreign investment are cornerstones of structural reform.