An attentive reader embarking on this book might wonder what "the" economic transition to which the title refers might be. In this century almost all countries have gone through periods of economic transition; but which period of economic history can claim to embody the notion or to represent the era of "the" transition? Definitely, no country or group of countries has experienced anything comparable to the economic upheavals that the fall of communism has brought about in a large portion of the world in just three years (1989 to 1991). No other "transition" to date has prompted more interest and more studies among economists, academics and policy-makers than has the transformation of centrally planned economies into market-based systems. It is this transformation that has come to define "the" transition. Early in the transformation process (in November 1990), with the support of the Centre for Co-operation with the Economies in Transition (CCET), I launched a conference to examine the challenges faced by these countries. About six years have gone by and a new economic landscape has emerged in that part of the world. The difficulties in transforming these economies have exceeded all expectations, and economic performances have varied considerably across countries. The time has come, therefore, to make a first evaluation of progress and problems, with a view to extracting useful policy lessons to guide policy-makers in successfully completing the transition in the near future.
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.
