Business Development Policy of the Post-Socialist States of Central and Eastern Europe

4666 Words 19 Pages
Business Development Policy of the Post-Socialist States of Central and Eastern Europe

DISSERTATION PROPOSAL

1. Title of Dissertation:
Small & Medium Business Development Policy of the Post-Socialist States of Central and Eastern Europe in their Transition to an Open Market Economy: Lessons and Applications for Cuba.
2. Aim of Dissertation & Motivation for Research:
The objective of this dissertation is to study the small and medium business policies developed in Central and Eastern Europe (CEE) as a result of their transition to an open market economy. The experience gained from the extraordinary process of transition, still under way in CEE and in the former Soviet Union (FSU), is rich with lessons that could guide policy
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The major objective of transition, at the national level, has been to develop an economic and political system that stimulates sustainable economic development and increased national wellbeing, in a context of political freedom. The move toward a private sector based economy operating in a market context has been a key aspect of transition. Another equally important aspect has been the move toward representative democracy.
The modus operandi of the former socialist countries in their transformation has required a number of key policy changes. To successfully divest the state of the elements used to control and to increase efficiency, most of the region's countries undertook programs of liberalization to free prices, privatization and distribution of the ownership of the means of production into private hands. In addition, the countries initiated stabilization programs that called for monetary and fiscal discipline. These stabilization programs provided the foundation for the development of financial systems that worked in market prices, and dealt with productive enterprises on the basis of their creditworthiness rather than by public subsidization. The introduction of hard budget constraints and the privatization of large firms have been, in fact, two of the most

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