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Transformation of Post-Communist Europe

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Bureaucracy in the 21st Century
Vladimir Kramsky
October 8th, 2012

Political and economic development in the Central and Eastern Europe after 1989

The transformations of the former socialist countries in Central and Eastern Europe after 1989 have involved a major change in the political system, from a dictatorial Communist Party rule to democracy. The surge of communist regime collapses after 1989 was quite unexpected from the point of view of outside viewers who failed to foresee such dramatic changes. Theoretically, I believe that the dominant issue of democratic consolidation in post-communist Europe is not lack of modernization or industrialization as it may have been the case for other historical transitions to capitalism. Instead, the changes in Central and Eastern Europe revolve around the establishment and legitimization of institutions that will support a new social order in Central and Eastern Europe based on a democratic political system. In general, the classic reform backlash did not materialize in the former communist countries of Central Europe. Though constituents in the countries such as the Czech Republic, Hungary, Slovakia, or Poland may have rejected radical reforms in early post-communist elections, the reform programs in these countries continued and, in some cases, even strengthened. Political trends in the Central-European economies were not generally characterized by the typical short-term losers of economic transition. We have rarely seen workers on strike, angry former state bureaucrats, penniless retirees, or a significant percentage of unemployed population. Instead of being turned down by the short term losers, political and economic reforms inclined to be disrupted by individuals who gained advantage from the state of economy in which state owned enterprises had been privatized but without anti-trust regulation. The emergence of a group of insiders with the ability to capture the reform process has contributed to an increasing concentration of wealth among the highest income groups.

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