Market-oriented Systemic Transformations in Eastern Europe

Socialist economies in Eastern Europe have collapsed and em- barked upon market-oriented reforms. The causes of the demise of centrally planned economies are analyzed and the basic challenges of systemic tranformation discussed. Negative income and wealth effects as well as distribution issues make adjustment extremely difficult. The fundamental roles of privatization and foreign investment are adressed. Foreign economic liberalization is considered to be of centralimportance for a growth-oriented adjustment path in a stage of conflict-prone policy and options. Politico-economic aspects of the new European developments in addition to North-South issues are analyzed. Difficult choices await decison-makers in economic policy and the business community in Eastern Europe and in leading market economies.

Autorentext
Paul J. J. Welfens, geb. 1957 in Düren, Studium der Volkswirtschaftslehre in Wuppertal, Duisburg und Paris, Promotion 1985, Habilitation1989. Inhaber des Lehrstuhls für Volkswirtschaftslehre - Schwerpunkt Makroökonomische Theorie und Politik an der Bergischen Universität Wuppertal; Präsident des Europäischen Instituts für Internationale Wirtschaftsbeziehungen (EIIW); Jean-Monnet-Professor für Europäische Wirtschaftsintegration; zuvor Distinguished Research Fellow am AICGS/The Johns Hopkins University, Professor an der Universität Münster bzw. Potsdam, Visiting Alfred Grosser Professor Sciences Po, Paris.

Inhalt
A: Characteristics of the Centrally Planned Economy and Systemic Collapse.- 1. The Rise and Fall of Marxist Theory and Socialism.- 2. Distortions of Socialist Economics.- 3. Stagnation and Collapse.- 4. Dramatic Changes in Eastern Europe.- Appendix Al: Quality Gaps in Socialism Modelled in a SALOP-SALANT Approach.- B: Inefficiency, Instability, and Restricted Options.- 1. Introduction.- 2. The Scope of Transformation and the Sequencing Issue.- 3. Restricted Options in Transforming Socialist Economics.- C: Privatization and Foreign Investment in Eastern Europe.- 1. In Search of Private Owners and Entrepreneurship.- 2. Privatization and Resistance to Systemic Change.- 3. Economic Challenges of Foreign Direct Investment in Eastern Europe.- 4. Normative Conclusions for Policy Concepts.- Appendix C1: Competition and Prices in Systemic Transition.- D: Foreign Economic Liberalization in Eastern Europe.- 1. The Challenge of Foreign Economic Liberalization.- 2. Strategic Role of Foreign Economic Liberalization.- 3. Liberalization and Economic Integration.- 4. Role of a New Marshall Plan.- Appendix D1: Ratio of Consumer Surplus to Producer Surplus.- Appendix D2: A New Supply-augmented IS-LM Model.- Appendix D3: Exports to European A Partners as a Percentage of Total Exports.- E: East-West Problems in Europe and North-South Conflicts.- 1. The New Europe.- 2. Economic Aspects of Instability and Conflict in Europe.- 3. North-South Conflicts and Global Aspects.