Creating Market Economy in Eastern Europe
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- Finally, the former East Germany occupies a special place, amongst the transforming countries. On the one hand, reunification with former West Germany has ensured that the conditions for political and economic transformation are now absolutely secure. On the other hand, the fact that income levels for those in employment have been rapidly catching up with those in the west has also crated considerable growth and employment problems. In the real world, the transformation process has proceeded very differently in the three furthest advanced countries of Poland, Hungary and Czechoslovakia.
In Poland and Hungary, the planned economy system had gradually been shot through with various holes during the past ten years, in stark contrast to Czechoslovakia and East Germany.
1. Clague Christpher : The Emergence of Market Economics in Eastern
Europe, 1992
2. Blanchard O., Layard R. : Economic Change in Poland, 1990
3. Kornai I. : The Road to a free Economy
4. Rausser G.C. : A Noncooperative Model of Multilateral Bargaining
5. Schumpeter I.A. : The Theory of Economic Development
6. World Bank : World Development Report, 1990
7. Giersch H. : Tawards a Market Economy in Central and Eastern
Europe, Berlin 1991
8. Kahtzenbach Erhard : Problems of Reconstructuring in Eastern Europe
9. Gregory P.R., Streart R.C. : Comparative Economic Systems
10. Hartmats R: Making markets: Economic transformation in Eastern
Europe and the Post Soviet States.
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Micro
- Prices
- Wages and Safety Net
- Enterprise Guidance
Macro
- Money
- Budget
- Incomes
- Trade
Privatization Emphasis:
Markets and Infrastructure
n
Short Term — Small
Firms
Long Term — Large
Firms
Problems: Valuation, Identifying New Owners, Updated Capacity, Loss Making
Transition Policies Emphasis: Stabilization
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