"Creating Market Economy In Eastern Europe"

9546 words - 38 pages

Annual Paperof “World Economies”“Creating Market Economy in Eastern Europe”The SummaryIntroduction1. Meaning of market Economy and Tasks of the Transitions.2. The Emergence of Market Economy in European countries.2.1. The Transition to a Market Economy.2.2.Poland and Hungary as the best example of transition in the East Europe.3.Moldova’s way to an open economy.Conclusion.IntroductionThis paper is oriented toward the problems of transition and creating in countries of Eastern Europe, namely Poland, Hungary, all of which are attempting to make the transition under a democratic, parliamentary form of government.The last new years have witnessed truly extraordinary events in the formally communist societies. Under newly established conditions of free speech and freedom of organization, communist principles of political and economic control have been widely repudiated, and communist governments have been swept aside, replaced by governments committed to democratic principles and a market economy. While in some countries and parts of countries former communist have not been decisively dislodged, in almost all cases communism has lost whatever remaining legitimacy it possessed, and it most of these societies the crucial economic issue has suddenly changed from reforming the socialist planning system by the introduction of market-like elements to moving to a market-economy with private ownership of most of society's assets.There are several reasons why the task of designing this transition is fascinating, especially to economists.First, the problem in new: no country prior to 1989 had ever abandoned the communist political and economic system.Second, the experience to date indicates that countries attempting transition face a number of common problems and difficulties. While there are important differences in the inherited situations and the choices made by governments of these countries, the similarities in the problems they face and the difficulties they are encountering suggest that there is logic to the transition process.Third, the absence of any close historical parallels and the limited experience economics in transition offer an opportunity and a challenge for development of normative transition scenarios. This turn out, however to be extraordinarily difficult to construct.Finally, the problems are not waiting for annalists' solutions; decisions currently being made may lead to an evolution with irreversible consequences.1. Meaning of Market Economy and the Tasks of the Transitions.That economic system which brings together natural resources, labour supply and technology and which is principally privately owned and were government has to some extent always been involved in regulating and guiding the economy, has been referred to as "Market Economy". Yet, despite this history of government intervention, individuals in that country have always been able to choose for whom they will work and what they will buy.Now 3 groups...

Find Another Essay On "Creating Market Economy in Eastern Europe"

The Fall of Communism in Eastern Europe

1982 words - 8 pages . Communism – Glossary of Political Economy Terms. Dept. of Political Science, Auburn University 7 April 2004 <http://www.auburn.edu/~johnspm/gloss/index.htm?http://www.auburn.edu/~joh nspm/gloss/communism.html>. Szostkievicz, Adam “Religion after Communism: Churches stumble in Eastern Europe” Commonweal. 24 Sept. 1999. 7 April 2004. <http://www.findarticles.com/cf_dl s/m1252/1999_Sept_24/56954974/p1/article.jhtml>. Wikipedia Articles. Workhistory.com Bringing History to Life .7 April 2004 <http://www.worldhistory.com/wiki/c/Command-economy.htm>.

Reasons why Communism fails in Eastern Europe.

2478 words - 10 pages Communism in the Eastern Europe was a tragedy. It was condemned because the leaders misused it. It was lack of support from other nations, and there was no efficient solution to save the economy from its downfall. However, it was Gorbachev's reformation that truly brought Communism in Eastern Europe to its end. It proved that Communism in Eastern Europe was just a theory that did not work in reality.Originally, Karl Marx invented the theory of

The establishment of communism in eastern europe

997 words - 4 pages The establishment of communism in Eastern EuropeIn the outcome of the Second World War, Europe was demolished, especially Germany, both the Soviet Union and the United States emerged as the embryonic superpowers. One of the superpowers, United States, concentrated on the rebuilding of Western Europe by setting up democratic governments while the Soviet Union proclaimed their authority over Eastern Europe. The development on both Western and

the establishment of communism in eastern europe

997 words - 4 pages The establishment of communism in Eastern EuropeIn the outcome of the Second World War, Europe was demolished, especially Germany, both the Soviet Union and the United States emerged as the embryonic superpowers. One of the superpowers, United States, concentrated on the rebuilding of Western Europe by setting up democratic governments while the Soviet Union proclaimed their authority over Eastern Europe. The development on both Western and

The Orthodox Tradition in Eastern Europe

963 words - 4 pages The Orthodox Tradition in Eastern Europe After the 4th century when Constantinople emerged as a great capital and church center, tensions sometimes arose between its leaders and the bishop of Rome. After the fall of Rome to Germanic invaders in 476, the Roman pope was the only guardian of Christian universalism in the West. He began more explicitly to attribute his dominance to Rome’s being the burial place of Saint Peter, whom Jesus had

Labour Market Inflexibility in Europe

1196 words - 5 pages Labour market inflexibility in Europe is the main reason why Europe is not as dynamic an economy as the United States” Critically discuss. “Labour market inflexibility in Europe is the main reason why Europe is not as dynamic an economy as the United States” In not more than 2500 words and not less than 1500, critically discuss the above statement. Introduction Today labour markets in Europe and the USA are often compared and

Economy and Society in Europe During 1848

1385 words - 6 pages Economy and Society in Europe During 1848 The revolutionary year of 1848 was an extraordinary period in which popular disturbances brought down the government of many countries. The revolts were very widespread, seriously affecting about fifty countries in Europe.1 It ranged from an enormous area, ranging from the Atlantic to the Ukraine, from the Baltic to the Mediterranean. Factors that contributed to these revolts included: the potato

R. R. Donnelley: Country and Oportunity Analysis in the Eastern Europe

550 words - 2 pages Donnelley normally business. And more when Donnelley only will have 49% of the new business.The Eastern Europe economies are striving to fill the vacuum left by the now-defunct communist regimes, remnants of their policies of central planning continue to haunt the new transitional economies, presenting great challenges for the region's new entrepreneurs as well as foreign investors. They are moving away from a centrally planned economy and

Products, Services, and Prices in the Free Market Economy

1208 words - 5 pages A firm's success in a market economy depends on meeting customer needs by producing the products they want and selling goods and services at prices that meet the competition they face from other businesses. The issue to be addressed is best utilizing producer's inputs to the greatest output value.The first decision to be made in this instance is to decide what the possible size and type of consumer demands. It must be understood that a company

Central Bank's Influence On The Market In The National Economy

1007 words - 4 pages Define the role of the Central Bank and its influence on the market in the national economy. “Monetary policy is the process of supplying nominal money, look after the availability of money and cost of interest rate, which is controlled by the government or central bank, can be rather an expansionary policy, or a contractionary policy.” The expansionary policy is adopted to increase the whole amount of supply of money in the economy, and a

Products, Services, and Prices in the Free Market Economy

1213 words - 5 pages Products, Services, and Prices PAGE \* MERGEFORMAT 1 Running head: PRODUCTS, SERVICES, AND PRICES IN THE FREE MARKETProducts, Services, and Prices in the Free Market EconomyUniversity of PhoenixProducts, Services, and Prices in the Free Market EconomyA free market economy is a market "where buyers and sellers can make the deals they wish to make without any interference, except by the forces of demand and supply" (BusinessDictionary.com, 2009

Similar Essays

You Are Employed By A Uk Publisher To Work With Them On The Launch Of A Magazine. The Magazine Is To Be Launched In Eastern Europe, Including Russia And Will Be Particularly Targeted At The Children’s...

2043 words - 8 pages in global standardization there must be an existence of a global market segment. In contrast, adaptation strategy has Higher costs, higher risk of disparity, advertisement controlling issues.In the case of Eastern Europe, Appendix 4 shows that both Eastern Europe and USA spent the most expenditure on media prints. The most obvious differences between Eastern Europe and USA is the culture, the language, weather, traditions, laws etc.By following

Venture Capitalism In Eastern Europe Essay

2334 words - 9 pages particular, in Eastern Europe countries, where the relevant market is relatively young compared with the venture capital industries of Western Europe. The empirical studies in the literature proceed to test the incidence of various factors on the example of OECD countries (Jeng and Wells, 1998; Romain and van Pottelsberghe, 2004; Clarysse et al., 2009) or, of groups of states of the EU (Cherif and Gazar, 2011; Kelly, 2010) that are characterised by

The Advantages Of Communism In Eastern Europe

895 words - 4 pages The collapse of Communism in Eastern Europe had significant negative effects on crime rates, poverty levels, and civil rights issues, all of which had been kept at bay during the Communist party's rule over Easter Europe. Just as the Berlin Wall crumbled to the ground so did the hopes and dreams of the newly freed citizens of post communist Europe. Crime rates, poverty levels and civil rights violations took a turn for the worst.Shortly after

Soviet Union's Presence In Eastern Europe

3427 words - 14 pages as far as the Soviets were concerned. That the Soviets sent in the military was a sign that ultimately, and particularly in Hungary’s case given its geographical strategic importance, countries in Eastern Europe could not be lost to the west. The alliance could not be risked. The 1968 ‘Prague Spring’ held a similar story for the Soviets. The command economy was having unpopular effects on Czech industry and the