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Assessment of the transition in Central and Eastern Europe

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As they gave up Communism, the Central European countries and the old people's democracies such as Bulgaria, Hungary, Poland, Slovak Republic, Czech Republic, Romania, and Slovenia or former members of the USSR (Estonia, Latvia, Lithuania), share the principles of the planned socialist economy.

These comprise the official property of the means of production, centralized planning of the economic activity, and state monopoly of the foreign trade among others. Their transition towards the market economy is organized along several axes: liberalization (of the prices, the foreign trade), privatization, and structural reforms (installation of a financial market, recasting of the banking system, reorganization of the right of the property and competition, reorganization of the companies).

Tags: Central European economy, transition in Central and Eastern Europe, market economy in Central and Eastern Europe

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