The market meets its match

Under free-market shock therapy, the economies of Eastern Europe have plunged into crisis. Shortages may have disappeared, but so have social services, a living wage, and equitable income distribution. Political unrest increases apace as output plummets. The questions as to why so much stagnation, inflation and de-industrialization have occured, and what can be done to turn this risky state of affairs around, must be addressed. In this critique of the free-market economic policies that have shocked Eastern Europe, such questions are examined in detail. The authors also propose a more sensible approach to reform, including a restructuring of the state itself so that it can play a more positive role in this difficult transition.