Chapter Twenty-one: Module Intro -- Transition Economies
Transition economies are those undertaking the transformation from socialism to capitalism. This chapter analyzes such economies and explains the fundamental issues that countries must face for transition to be successful. We examine the experience of East Germany in its reunification with West Germany and the transition experiences of Russia and Poland. The prognosis for many transition economies, including Russia, is unclear. Although economists have some concrete suggestions for reform, political realities may prevent some of these reforms from occurring. In other words, it is much easier for a doctor to prescribe treatment than to force the patient to follow it, and often times the doctor does not even know the correct treatment to prescribe.
We recommend that you read the lecture notes first, then take the online quiz and read the summary to reinforce your knowledge. Enjoy your exploration.