East Central Europe: Problems, Prospects and Policy Dilemmas

  • F. Stephen Larrabee


Since the collapse of communism, the countries of East Central Europe have made substantial progress towards the establishment of stable democratic systems and the creation of market economics.1 There are growing signs that the region — especially the three ‘fast track’ countries of Hungary, Poland and the Czech Republic — has begun to emerge from the recession that followed initial efforts to move toward market reform in 1990–1991.2 Growth rates have increased, while inflation has dropped significantly; privatization has also taken root. As of 1996, sixty to seventy per cent of the region’s economy was in private hands. Trade has been reoriented toward the industrial countries of the West. States in the region now conduct over half their trade with the European Union (EU). Foreign direct investment has also risen steadily, with Hungary leading the way.


European Union Common Agricultural Policy East Central European Union Enlargement Acquis Communautaire 
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    See Wojciech Gebicki and Anna Marta Gebicka, ‘Central Europe: A shift to the Left?’, Survival, 37, no. 5 (Autumn 1995) 126–138.CrossRefGoogle Scholar
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© Palgrave Macmillan, a division of Macmillan Publishers Limited 1997

Authors and Affiliations

  • F. Stephen Larrabee

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