Shleifer And Treisman Summary

The democratization, economic liberalization, and eventual collapse of the Soviet Union is commonly attributed to Mikhail Gorbachev's Perestroika and Glasnost reforms during the period of 1985-1991. This purpose of these reforms is still a trenchant question as the countries of the old Soviet Union, particular Russia, are being pressured to further liberalize their economies.

The Soviet Union, which was once a world superpower in the 19th century saw itself in chaos going into the 20th century. These chaoses were marked by the new ideas brought in by the new leaders who had emerged eventually into power. Almost every aspect of the Soviet Union was crumbling at this period both politically and socially, as well as the economy. There were underlying reasons for the collapse of communism in the Soviet Union and eventually Eastern Europe. The economy is the most significant aspect of every government. The soviet economy was highly centralized with a “command economy” (p.1. fsmitha.com), which had been broken down due to its complexity and centrally controlled with corruption involved in it. A strong government

While the liberal experienced emotional changes amid the 1970s, the Communist agreement experienced reduced rates of development yet not the sorts of amazing economic rebuilding that happened in the West. These improvements in the 1970s suggested the Cold War's determination in the 1980s. Arranged in similar connection, the changes of the liberal world economy during the 1970s uncovered – an in a few ways improved – the relative backwardness of the Soviet Union's charge economy, with final outcomes for the truth of the Communist administration. Universal fiscal change, in this view, encouraged the ideological and geopolitical improvements that would take the Cold War.

On the other hand we had the USSR and their approach towards rebuilding Eastern Europe. “Modernization of production in the Soviet bloc opened new technical and bureaucratic careers, but economic development in satellite states remained slow because the USSR bought goods from these satellite states at bargain prices and sold to them exorbitant ones. Despite this inequity, peoples livelihoods

The many long-term internal causes of the collapse of the Soviet Union centralized around weaknesses in their economy. They had an inflexible central planning system, the inability to modernize, and the inefficiency in their agriculture production. Sometime around the 1970's the computer and automation revolution had emerged. This revolution took over the West, but practically missed the Soviet Union, except in the military sector (Baylis & Smith, 2001.) Gorbachev's goal in economic restructuring was to create a separation between the economic and the political. The major changes began with the legalization of private farming and business co-operatives, and the allowing of foreign company ownership over Soviet enterprises (Baylis &Smith, 2001) All of Gorbachev's ideas on economic restructuring backfired on him since the price levels were inconsistent, and a sense of social confusion about the future of their state was created.

The collapse of Communism, and the resulting attempts to institute Western-style democracy and markets, brought immense uncertainty to the former Soviet bloc (and non-aligned Yugoslavia). Though the end of communism was welcomed by the vast majority of people, the question of what comes next, and how what has come next is any better, has vexed the former communist countries of Eastern Europe. Each country has adapted to the transition with varying degrees of success. Slavenka Drakulic explores this transition, and the difficulties that have come with it, in A Guided Tour Through the Museum of Communism.

South Central Asia was doing good because of government subsidies before the fall of the Soviet Union, but when those subsidies ended the economy began to collapse. The Soviet Union Government was trying to stabilize

Comparisons between countries and regions before and after the advent of capitalism in Eastern Europe, Russia and Central Europe as well as a comparison of Cuba and the ex-communist countries provide us with an adequate basis to draw some definitive conclusions. Fifteen years of "transition to capitalism" is more than adequate time to judge the performance and impact of capitalist politicians, privatizations, free market policies and other restoration measures on the economy, society and general welfare of the population.

Though loyalty and the military were important components of Communism, there was one thing that the government system had at the core of its existence, control. All of it’s principles tied back to control whether it being the control of its people, other counties, or the whole world. Though, because of its many flaws, it never branched out far; it still used a great

The foreign and domestic policy in Czechoslovakia is something that has undergone radical change since Soviet rule. Under Soviet rule, Czechoslovakia's social institutions were all under one control. Education, healthcare and other institutions were all systematized by one authority. In 2003, massive decentralization reforms changed the administration of the Czech government. The oversight powers of many social institutions, such as education, healthcare, territorial planning and the environment, were transferred to 14 regional governments. This transfer of power

In 2003 the global economic situation was flourishing with growth strengthening up to 3% in 2003 from

In the early 2000s Poland had a tight monetary policy, which ultimately curbed inflation as well as made their transition into the European Union easier. As a newly democratic government Poland was able to grow by 1.5 percent during 2009. This was due to the fact that Poland “embraced market-based economic policies, opened its markets to international trade and foreign investments, and privatized many state-owned businesses” (Hill, 2015, p. 57). Large consumer markets came available to Poland when they joined the European Union which allowed them to become a major exporter, and their exports accounted for 40% of gross domestic product. Poland’s government also kept an eye on public debt, not allowing it to grow during the recession, unlike many other countries. Because of this, investor’s confidence grew and during 2008 to 2009 there were no large outflows of funds. In 2009, Poland also benefited from giving cash grants to people who exchanged their old cars for new cars. Poland had many vehicle plants and was selling a lot of cars and parts to Germany, this was done to increase the demand for German vehicle companies. In making all of these changes, Poland was able to avoid the worst effects of the economic crisis that took over a lot of Europe during 2008 – 2009.

Inflation, crisis, recession, fear, unemployment rise, debt, and depression are some of the commonly used phrases in relation to failing economies. There are many different factors that contribute to the downfall of an economy, whether it be the political structure, the aftermath of a war, or the role of government itself. A failing economy’s severity can vary based on the specific country’s situation. In comparison to the world, there have been a few countries under the European Union that have continually worsened economically through the years: Greece and Spain.

Moreover, the collapsed Bretton Woods system was accompanied by the reemergence of international capital markets and an increase in the activity of international commercial banks. With decreased demand for loan in high-income countries, interest rate decreased and banks sought new borrowers. Meanwhile,in less developing countries growth rates was fairly satisfactory. According to FDIC ( 1997,pp 192), before tho oil price shocks which will explained later, for more than a decade, the real domestic product growth rate of the developing countries averaged 6 percent and for remainder year slowed to 4-5 percent. Such growth generated investment from international banks in these markets.

Countries in Central and Eastern Europe suffered high inflation and major recessions at the first year of the transition. Even though, Hungary and the Czech Republic still successfully established capital markets in the early phase of transition. Hungary represents one of the most successful Eastern European countries that undertook economic transformation. Hungary firstly built an infrastructure and a regulatory framework. Building market infrastructure can improve accounting standards and modernize the tax system based on income