Eastern Europe in a Time of Change: Economic and Political Dimensions

This study has discussed the issues of economic reforms, economic development strategies and political changes in Eastern Europe in the 1990s. Undoubtedly, it raises as many questions as it answers. As the Nobel laureate in economics, Robert Solow, states, we economists tend "to answer questions more delicate than our limited understanding of complicated questions will allow. Nobody likes to say "I don't know.' ¹ " The present study has attempted to establish a basis for better understanding of the directions in which economic transformation and political changes in Eastern Europe might be expected to move. There are many issues for further research. For example, what impact will the economic reforms have on domestic political developments? What impact will economic changes have on the ethnic conflicts of the region (since when the economy deteriorates, it is easier to be an emotional nationalist than a rational democrat)? What impact will economic development policy have on resolving the external balance problem? What impact will economic and political changes have on East- West security issues?

The economic transformation in the postcommunist European countries and the political liberalization in the region are processes

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