Question

In: Economics

What was the effect of 1989 on Central and Eastern Europe?

What was the effect of 1989 on Central and Eastern Europe?

Solutions

Expert Solution

The year of miracles in Central and Eastern Europe, when communist regimes seemingly overthrew as dominoes – it's easy to focus on the Western perspective: the end of the Iron Curtain. Images of the fall of the Berlin Wall on 9 November 1989 and of thousands of pro-democracy demonstrators blocking the streets of cities like Warsaw, Prague and Budapest that year have since been celebrated in the West as icons of the region's downfall of communism. But often missed by those who haven't lived through it is the economic chaos that preceded the revolutions – and the winding political and social directions that many Eastern Bloc countries have taken in their search of democratic and economic stability

Among the older generations of the country, memories of the rising pains of the 1990s remain, coloring not only their memories of the post-communist transition but also their views of Western institutions such as the International Monetary Fund, which ostensibly sought to promote the transformation of the Eastern Bloc but left many Eastern Europeans feeling unable to dictate the terms of their duties In the 1990's, economies across the world fell into recession. Efforts to privatize and open economies have contributed to a increase in unemployment and a growing inequality.

Most political frontiers in Eastern Europe represent ethnic boundaries. Every area had once looked like nation-states. Romania is set aside for Romanians in theory, Hungary for Hungarians etc. Because of the ethnic groups within their boundaries, none are true nation-states, but the countries retained their shared heritage during the Communist period. Cultural movements have put together people in most Eastern European countries to openly embrace the drive to unite and hold onto a history that is as old as Europe itself.

Eastern Europe has moved away from the old Soviet Union toward democratic states, free market economies, private ownership and the EU.
Countries with stable regimes and economic potential have been admitted into the EU, and economies have grown. Many countries that did not meet the degree of economic growth or democratic changes were not admitted into the EU. The transition from former Soviet republics to capitalist regimes, including unemployment, inflation, corruption and crime, and poverty, has not been without difficulties.


Related Solutions

Describe market conditions and the 'state of entrepreneurship' in Central and Eastern Europe (CEE).
Describe market conditions and the 'state of entrepreneurship' in Central and Eastern Europe (CEE).
Describe market conditions and the 'state of entrepreneurship' in Central and Eastern Europe (CEE).
Describe market conditions and the 'state of entrepreneurship' in Central and Eastern Europe (CEE).
what reasoning was behind the drawing of borders in eastern europe by stalin?
what reasoning was behind the drawing of borders in eastern europe by stalin?
Read about the country context (Eastern Europe and Central Asia) and write about the laws/policies, stigma/discrimination,...
Read about the country context (Eastern Europe and Central Asia) and write about the laws/policies, stigma/discrimination, violence, expenditure, prevention of HIV/AIDS
5. a. Western Europe is capital abundant, Eastern Europe is labor abundant; manufacturing is capital intensive...
5. a. Western Europe is capital abundant, Eastern Europe is labor abundant; manufacturing is capital intensive (X) and agriculture (Y) is labor intensive.  Assume also that tastes in Western and Eastern Europe is unbaised and that labor and capital is mobile between manufacturing and agriculture within each region.  Illustrate everything on the trade diagram for both regions with pre trade, post trade price ratios! Write down the pre trade and post trade production and consumption points and the pattern of trade as...
If inflation is high in Europe relative to the US, what effect will it have on...
If inflation is high in Europe relative to the US, what effect will it have on the value of the US dollar as compared to the Euro? Why?
In ABCT, what is the effect of a credit expansion by the central bank? Using the...
In ABCT, what is the effect of a credit expansion by the central bank? Using the ABCT framework, show the effect of a credit expansion on the macroeconomy (use the ppf, stages of production and loanable funds market graphs to show your answer graphically). (Be sure to explain verbally what you depict graphically).
Vincey, Inc., is a U.S.-based MNC that has been aggressively pursuing business in Eastern Europe since...
Vincey, Inc., is a U.S.-based MNC that has been aggressively pursuing business in Eastern Europe since the Iron Curtain was lifted in 1989. Poland has allowed its currency’s value to be market determined. The spot rate of the Polish zloty is $.40. Poland also has begun to allow investments by foreign investors, as a method of attracting funds to help build its economy. Its interest rate on one-year securities issued by the federal government is 14 percent, which is substantially...
Background: Morris Saldov conducted a study in Eastern and Central Newfoundland in 1988 to examine public...
Background: Morris Saldov conducted a study in Eastern and Central Newfoundland in 1988 to examine public attitudes towards social spending. In particular, the study tried to determine if knowing someone on public assistance (yes, no) affected one's views on social spending (too little, about right, too much). The data from the study is summarized in the table below. Yes No Total Too little 38 7 45 About right 17 13 30 Too much 8 7 15 Total 63 27 90...
Background: Morris Saldov conducted a study in Eastern and Central Newfoundland in 1988 to examine public...
Background: Morris Saldov conducted a study in Eastern and Central Newfoundland in 1988 to examine public attitudes towards social spending. In particular, the study tried to determine if knowing someone on public assistance (yes, no) affected one's views on social spending (too little, about right, too much). The data from the study is summarized in the table below. Yes No Total Too little 40 8 48 About right 15 14 29 Too much 10 6 16 Total 65 28 93...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT