Reforming the Economies of Central and Eastern Europe [antikvár]

I. Introduction and SummaryThe revolutionary developments during 1989 in the former Soviet satellites in central and eastern Europe generated much optimism about both the global geopolitical situation and prospects for the region. In the USSR itself, the direction of policies in both political and economic spheres has appeared to shift on several occasions but the balance of forces appeared to be pointing toward liberalisation even before the attempted coup d'état in August. With the failure of the coup and the subsequent collapse of the Communist Party it is unclear whether the USSR will survive as a single entity or, if it does, what the nature of the relationship will be between those constituent republics which remain part of the Union. However, it appears likely that the trend toward political liberalisation will be reinforced and that at least some of the republics will commit themselves to making transitions to a market economy.During the pjsjj^ar, the scale of the task which countries in the region face in buildingjTiarket institutions^ adapting attitudes aiid hehaYiQur to them, and integrating themselves into the international economy has led to an increasingly sober assessment.-Sharp falls in output have been experienced throughout the region.-The prospects for catch-up in living standards._with developed market economies are now discussed jn terms of. decades rather than^years.-Examples of successful radical transformation of distorted economies (Chile, whose usefulness as a model is limited by its poor record with respect to human rights, and, to a lesser degree, Spain), as_c^j;)sedjp successful rebuilding or development, are jglat^rvely_jmej_ex^^ stagnation or deterioration where weak governments fail to peiseyere with structural reform while losing macroeconomic control (various countries in Latin America and Yugoslavia), are common.