by Nemat Shafik
Central, Eastern and Southeastern Europe has been through a lot. In two short decades, the region moved from a communist planned system to a market economy, and living standards have converged towards those in the West.
It has also weathered major crises: first the break-up of the old Soviet system in the early 1990s, then the Russian financial crisis in 1998, and finally the recent global economic crisis. How did these countries do it?
From the Baltic to the Balkans, the region’s resilience and flexibility are the result of hard work and adaptability. But more than anything, it is the strong institutions built over the last two decades that have enhanced the region’s ability to deal with the momentous challenges of the past, the present—and those to come.
Filed under: Economic Crisis, Emerging Markets, Europe, Financial Crisis, IMF, International Monetary Fund, Multilateral Cooperation | Tagged: capacity building, communism, eastern Europe, Estonia, euro zone, global economic crisis, governance, grwoth, Hungary, IMF, International Monetary Fund, Joint Vienna Institute, Latvia, living standards, Nemat Shafik, Poland, privatization, Romania, technical assistance, trade liberalization, Ukraine, Vienna Initiative | Leave a Comment »