Economic Transformation and Development in Central and Eastern European Countries
Edition: Lublin 2016
The beginning of the economic transformation process in Central and Eastern European countries was a result of the collapse of socialism. In the early 1990s international structures of economic cooperation with the dominant role of the former Soviet Union collapsed. In most countries of Central and Eastern Europe economic reforms were introduced and formed on the model of the programme referred to as the Washington Consensus, which suggested the solution alluding to the assumptions of neoliberal policies. To assess these phenomena, the paper attempts to answer two questions: what was the process of economic transformation in the countries of Central and Eastern Europe and how the rate of economic reforms resulted in their economic growth and development. The analysis includes 21 countries of Central and Eastern Europe. The results of the study indicate that in the years 1991-2014 there was a systematic progress of transformation in countries of Central and Eastern Europe. In most cases, reforms and liberalization were carried out much faster in countries with systems of new political forces. Also, Spearman’s rank correlation coefficients between GDP per capita and the rate of economic transformation indicate that the economic transformation had a significant impact on economic growth in CEE21 countries. All correlation coefficients are positive, which means that higher ranks of a rate of economic transformation correspond to higher ranks of economic development measured by GDP per capita.