What can encourage a formerly centrally planned economy as part of liberalization?

WTO membership plays a significant role in encouraging a formerly centrally planned economy to engage in liberalization. Joining the World Trade Organization promotes free trade principles and encourages countries to reduce tariffs and non-tariff barriers, thus integrating them into the global market. This integration is crucial for economies transitioning from central planning, as it exposes them to competitive forces, fosters innovation, and encourages efficiency within domestic industries. Membership can provide access to international markets and facilitate foreign investment, which are essential for economic reform and development.

In contrast, while supporting UN efforts and engaging with the International Monetary Fund can also contribute to economic reforms, they do not specifically focus on trade liberalization as directly as WTO membership does. NATO pressure is primarily related to security and military alliances rather than economic liberalization, making it less relevant in the context of encouraging economic transformation. Therefore, WTO membership stands out as the most effective means of promoting liberalization in a formerly centrally planned economy.