Eastern Europe: from state socialism to post-socialist depression

Abstract

The experience of systemic transformation in eastern Europe since 1989 presents several sobering conclusions and despite their provisional nature, they are worth noting: The role of the state in managing the transition cannot be wished away. The use of 'shock therapy', while admissible in terms of achieving macro-economic stabilisation, can be disastrous if it is conceived in terms of structural transformation. And the element of speed has little to do with the success of the transition.