Question

Why are young Eastern European Democracies struggling to establish a free market system?

Answer 1

Answer:

Almost two decades after the fall of communism, the governments of Eastern Europe are all tackling transitions away from a command economy and toward capitalism in different ways. Many of these countries are trying hard to establish stable democracies while simultaneously building a market system. Under previous communist or socialist political systems, equality and full employment were seen as important benefits that offset the restrictions and lack of freedoms.

Explanation:

In a democratic system that embraces capitalism, the significant downside is unemployment and increased income inequality. (Young Eastern European democracies struggle because governments are young and untested and corruption is rampant.)

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Answer 2

The Second War brought complete destruction to that region. Entire cities were leveled by the germans and russians.. If you go to Poland today, for example, what you see in Warsaw and Gdansk are copies. The "medieval" buildings are all or mostly reconstructions, from the rubble left behind by German and Soviet bombs and artillery. After that, the communists imposed central planning on top of a destroyed economic base. It's very hard to regenerate money from nothing, and most of what is produced in eastern Europe went into Warsaw Pact defenses and salaries and privileges for the communist party elite, to keep the system of authority in place. After the fall of communism, the post-Cold War governments inherited another kind of economic decay. They instituted "reform" plams to shock the economies into the free market, leaving in their wake massive unemployment and property.