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4 - Economic Reforms and the Burdens of Transition

from Part Two - Issues

Published online by Cambridge University Press:  16 September 2019

Sabrina P. Ramet
Affiliation:
Norwegian University of Science and Technology, Trondheim
Christine M. Hassenstab
Affiliation:
Norwegian University of Science and Technology, Trondheim
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Summary

Starting from remarkable divergences and similarities of pathways into market liberalism, the chapter investigates progress and setbacks of economic reforms. The first section indicates key factors for divergences and similarities, the second section discusses the divergence of pathways of post-socialist capitalisms, the third, similarities, the fourth the results of economic reform paths until 2008, and the fifth the preliminary setback of the Eurozone crisis and its aftermath. As the title indicates, the necessary economic reforms in many countries of the region could be carried out only by measures that constituted a temporary burden for the population, such as unemployment, significant setback of household income, insecurities regarding pension provision, and labor migration. But the illusion of a better life, especially for the children, after a phase of hardship kept the ball rolling. In the first decade of the 2000s economic reforms showed positive results – not only in countries which became European Union member states but also in disadvantaged countries such as the West Balkan ones. The economic crisis caused by the Euro-American banking system in 2008 and after hit the countries of Central, Eastern, and Southeastern Europe comparatively hard. Paradoxically, the West Balkan states, chronic losers from transition, were harmed less – due to their low integration into the global economy.

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Publisher: Cambridge University Press
Print publication year: 2019

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References

Further Reading

Aligică, Paul Dragoș and Evans, Anthony John J.. The Neoliberal Revolution in Eastern Europe: Economic ideas in the transition from communism (Cheltenham: Edward Elgar, 2009).Google Scholar
Åslund, Anders. How Capitalism Was Built: The transformation of Central and Eastern Europe, Russia, and Central Asia (Cambridge: Cambridge University Press, 2007).Google Scholar
Bartlett, Will and Prica, Ivana. The Variable Impact of the Global Economic Crisis in South East Europe, LSE Research Online Documents on Economics 48037 (London: LSE, 2012).Google Scholar
Connolly, Richard. “The Determinants of the Economic Crisis in Post-Socialist Europe,” in Europe–Asia Studies, 64(1) (2012), pp. 3567.Google Scholar
Lorentzen, Anne and Rostgaard, Marianne (eds.). The Aftermath of “Real Existing Socialism” in Eastern Europe, Volume 2: People and technology in the process of transition (Basingstoke: Macmillan, 1997).Google Scholar
Mitra, Pradeep. Innovation, Inclusion and Integration: From transition to convergence in Eastern Europe and the former Soviet Union (Washington, DC: World Bank, 2008).Google Scholar
Popov, Vladimir. “Shock Therapy versus Gradualism Reconsidered: Lessons from transition economies after 15 years of reforms,” in Comparative Economic Studies, 49 (2007), pp. 131.Google Scholar
Smith, , Adrian and Adam Swain. “The Global Economic Crisis, Eastern Europe, and the Former Soviet Union: Models of development and the contradictions of internationalization,” in Eurasian Geography and Economics, 51(1) (2013), pp. 134.CrossRefGoogle Scholar

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