The accelerating pace of global change demands that economies must be adaptable. Flexible economies flourish, as in Eastern Asia. Inflexible economies stagnate, as in communist Eastern Europe and Africa. Even though adaptability governs the long-term development of economies, economists have had little to say about the nature and determinants of economic flexibility. This book redresses that situation. The contributors address the key theoretical and empirical issues, using a wide range of country studies.