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Market-oriented Systemic Transformations in Eastern Europe
Problems, Theoretical Issues, and Policy Options
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Socialist economies in Eastern Europe have collapsed and em-§barked upon market-oriented reforms. The causes of the§demise of centrally planned economies are analyzed and thebasic challenges of systemic tranformation discussed.§Negative income and wealth effects as well as distribution§issues make adjustment extremely difficult. The fundamental§roles of privatization and foreign investment are adressed.§Foreign economic liberalization is considered to be of§centralimportance for a growth-oriented adjustment path in§a stage of conflict-prone policy and options.§Politico-economic aspects of the new European developments§in addition to North-South issues are analyzed. Difficult§choices await decison-makers in economic policy and the§business community in Eastern Europe and in leading market§economies.
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