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The Main Problems which Eastern/Central European Countries Have - Essay Example

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This paper talks about the major challenges faced by the Eastern and Central Europe countries, in the process of the transition from the centrally-planned to market economics after the collapse of the Soviet Union. All these countries faced different problems but most of them have emerged stronger…
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The Main Problems which Eastern/Central European Countries Have
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The Main Problems which Eastern/Central European Countries Have

Download file to see previous pages... This paper offers a comprehensive analysis of the economic problems that former Soviet Union countries, as well as Central European and the Balkan countries, faced after the collapse of the Soviet Union. Also, the economic policies of different countries, as their response to systemic crisis, are under consideration.
It argued in the article, that collapse of the Soviet Union in 1991 had serious repercussions for countries in Eastern and Central Europe. Under communism economic activity was centrally planned but now there were being forced to change to market economy very quickly. To understand the challenges of transition in Eastern and Central Europe one has to understand that it is difficult to treat such a diverse set of countries equally. There are three categories of countries and they had different challenges. The first category are those countries that composed the Soviet Union. The FSU countries had all been centrally controlled from Moscow. The removal of that control left them with a vacuum at the top. The old structures of planning and control were disintegrating, creating conditions of economic and political crisis. They had to build administrative capacity and also take control of companies that were also controlled from Moscow. The challenge these countries faced was of a political transition from communism to democracy which was happening at the same time with economic transition. ...Download file to see next pagesRead More
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