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 the basic 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.
General
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