Medium-Term Perspectives for East-Central Europe

The transformation from central planning to market economies in East-Central Europe is making good progress, but achievements in privatization have so far been less convincing. Macro-economic stabilization and structural adjustment have led to deep cuts in production. Future integration of Eastern Europe into the world economy will depend on the goods with which these countries will conquer international markets. In this respect, the scope of direct foreign investment from the West and the degree of openness of Western markets will be of crucial importance.