4 - Economic Reforms and the Burdens of Transition

Summary

Starting from remarkable divergences and similarities of pathways into market liberalism, the chapter investigates progress and setbacks of economic reforms. The first section indicates key factors for divergences and similarities, the second section discusses the divergence of pathways of post-socialist capitalisms, the third, similarities, the fourth the results of economic reform paths until 2008, and the fifth the preliminary setback of the Eurozone crisis and its aftermath. As the title indicates, the necessary economic reforms in many countries of the region could be carried out only by measures that constituted a temporary burden for the population, such as unemployment, significant setback of household income, insecurities regarding pension provision, and labor migration. But the illusion of a better life, especially for the children, after a phase of hardship kept the ball rolling. In the first decade of the 2000s economic reforms showed positive results – not only in countries which became European Union member states but also in disadvantaged countries such as the West Balkan ones. The economic crisis caused by the Euro-American banking system in 2008 and after hit the countries of Central, Eastern, and Southeastern Europe comparatively hard. Paradoxically, the West Balkan states, chronic losers from transition, were harmed less – due to their low integration into the global economy.