2015

The Three Mistakes of Transition

Start with a failing economy. Throw in a team of inexperienced politicians, people in fact who had spent their careers deliberately avoiding official politics. Add a population with the highest possible expectations. And, as a wild card, introduce an international community that was not offering very much in the way of financial assistance. This was… Continue reading The Three Mistakes of Transition

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Negotiating the Transition in Poland

The great transformations of 1989 began with the announcement early in the year that the Polish government would begin Round Table negotiations with the Solidarity trade union movement. It was an unprecedented move. There had been uprisings from below and crackdowns from above. There had been revolutions from within and interventions from outside. But for… Continue reading Negotiating the Transition in Poland

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2014

Managing the Economic Transition

For most countries in East-Central Europe, capitalism didn’t arrive overnight in 1989 or 1990. Even in the more controlled environments like Romania, people could get a taste of capitalism by buying or trading on the black market. Hungary, on the other hand, was far ahead of its neighbors in this respect. It had been experimenting… Continue reading Managing the Economic Transition

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2013

Slovenia’s Gradualist Transition

When it came to the transition from Communism to capitalism, Poland led the way with its rapid, “shock therapy” approach. This “overnight” strategy was designed to reduce inflation, stabilize the economy, and eliminate opportunities for insiders to make money by taking advantage of large differences between state-subsidized and free-market prices. On the other end of… Continue reading Slovenia’s Gradualist Transition

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Doing Business in Eastern Europe

A typical story of the economic transition in East-Central Europe is of the frustrated manager in a state-owned company under Communism who becomes a rich and successful entrepreneur after 1989. Certainly there were plenty of frustrated managers during the Communist period. And you can read plenty of stories about the new fabulously wealthy business owners… Continue reading Doing Business in Eastern Europe

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