Economic Transformation in Eastern Europe: Its Genesis,Adjustment Process,and Impact on Developing Countries

ABSTRACT Increasing strains on self-sufficiency within the block of East European command economies resulted in the dramatic decision to change over to an economic system largely based on market forces. The painfulness of the ensuing transformation process will be mitigated somewhat by supportive economic policies of the West, including the European Community which is itself aiming at complete economic integration by the end of 1992. The consequences for the developing countries of these far-reaching policy changes in East and West are likely to be negative, at least in the immediate future. This is true for the volume of development assistance given by East and West, as well as for the export prospects of developing countries. Favourable effects might at best be expected in the longer run.