Negative Effects of Globalization -- Expropriation of National Capital in Eastern European Countries

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Features: The transition from Eastern Europe to market capitalism occurred at lightning speed, but it also triggered disasters at the same lightning speed. The disaster initially manifested as a truly devastating economic recession, with a level of destruction unmatched in contemporary history. Subsequently, the disaster took the form of self-destruction, almost for free, transferring most of its state-owned fixed assets to the Chinese. This book does not view economic transformation as a process of replacing the state with the market. The stance of this book is that economic transformation requires reforming both the state and the market simultaneously. Fundamentally, this means that during the period of economic transformation, the state apparatus must be reorganized, adopting more indirect economic control measures, or abandoning direct economic control measures; at the same time, the market must be institutionalized, transforming its actors from informal, power-based behavior patterns to formalized, legally regulated practices. Therefore, the ultimate outcome of economic transformation will depend on the success of reforms implemented on these two tracks of a country's economic system.