Lessons from the Economic Transition

An attentive reader embarking on this book might wonder what "the" economic transition to which the title refers might be. 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. 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.