The Road to Economic Reform in Eastern Europe; Economic Transition and Institutional Change

Author: Kong Tianping
Publisher:
Publish Date: 2003-11-01
Features: From an international comparative perspective, the economic reform path in Eastern Europe is very unique. First, the economic restructuring and political restructuring in Eastern Europe are intertwined, differing from the transition economies in Asia. Second, the economic restructuring in Eastern Europe not only aims to achieve macroeconomic stabilization, economic liberalization, and the privatization of state-owned enterprises but also to establish a feasible market economy system, which differs from the economic reforms of developing countries aimed at overcoming crises and correcting distortions. Third, although the economic restructuring in Eastern Europe also incurred certain social costs, the costs paid were smaller than those in Russia and did not lead to the Russian-style "capitalist satire" of a few oligarchs benefiting while most of the population suffered. Finally, the economic restructuring in Eastern Europe is closely related to the changes in the European international order. After the Cold War, Eastern European countries began the process of moving away from Russia and toward Europe, and joining the European Union became a significant incentive for the economic restructuring in Eastern Europe. To some extent, the economic restructuring in Eastern Europe was driven by European economic integration.