Lessons from the Economic Transition: Central and Eastern Europe in the 1990s

An analysis of the main shortcomings and pitfalls in transition policies applied thus far in Central and Eastern Europe. Also included is an attempt to point the way forward to push the transition through to a successful conclusion. The book highlights the complex interrelation between the requirements of the economics of transition and the social and political constraints faced by Central and Eastern European countries (CEECs). The central questions of this book are: what have we learned from CEECs' economic transition to a market-based system? and are there lessons to provide guidance to these countries to improve their policies in the future? The book has four major parts selected for their critical importance in explaining the results achieved to date and in assisting policy-makers in achieving a successful transformation of these economies in the future. These four themes include the overall framework of the transition strategy, the restructuring and development of the enterprise sector, the unemployment problem and social issues, and the integration of CEECs into the world economy. The book presents a set of policy-oriented conclusions at the end of each part, providing the reader with both thoughtful economic analyses and insightful policy conclusions.

Table of Contents:
I — Main successes and failures in the transition strategy.- 1. Transition approaches in retrospect.- 2. The transition in Eastern Europe and the former Soviet Union: some strategic lessons from the experience of 25 countries over six years.- 3. Transition to date: a comparative overview.- 4. From transition to market: evidence and growth prospects.- 5. Lessons to be drawn from main mistakes in the transition strategy.- 6. Adjustment without recession: a case study of Hungarian stabilization.- 7. The interplay between economic and political transition.- 8. Political constraints and the transition experience.- 9. Comments.- 10. General discussion.- 11. Policy conclusions.- II — Enterprise restructuring and private sector development.- 1. Comparing two Great Depressions: 1929-33 to 1989-93.- 2. Restructuring outcomes and the evolution of ownership patterns in Central and Eastern Europe.- 3. Corporate governance and the political effects of privatisation.- 4. Large privatisation, restructuring and foreign direct investment.- 5. The evolution of bank credit quality in Romania since 1991.- 6. Comments.- 7. General discussion.- 8. Policy conclusions.- III — Unemployment and the reform of social policies.- 1. Unemployment, restructuring and the pace of transition.- 2. Transformation as a demographic crisis.- 3. Labour market policy and the reallocation of labour across sectors.- 4. Central and Eastern European labour markets in transition.- 5. Reforming tax and benefit systems in Central Europe: lessons from Hungary.- 6. Comments.- 7. General discussion.- 8. Policy conclusions.- IV — External policies.- 1. Currency convertibility in transforming economies: was it a mistake?.- 2. Exchange rate policies in post-communist economies.- 3. Access to Western markets, andEastern effort levels.- 4. Interrelations between subregional co-operation and EU enlargement.- 5. Foreign direct investment in Eastern Europe and the former Soviet Union: results from a survey of investors.- 6. Comments.- 7. General discussion.- 8. Policy conclusions.