"Creating Market Economy in Eastern Europe"

Essay by ksenia2005 February 2009

download word file, 39 pages 3.0

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...