ABSTRACT
The Central and Eastern European economies, i.e. those of Poland, Hungary, Czechoslovakia, Romania, Bulgaria, former East Germany and the Comunity of Independent States, the CIS or former Soviet Union, (referred to as Eastern European countries in this chapter) seek transition from socialism. This entails a change in the domestic economic system, but also integration with Western market economies through international trade. Access to Western markets is important, firstly, because of the collapse of the system of trade and payments between the former members of the Council of Mutual Economic Assistance (CMEA) which has disrupted traditional trading patterns. Secondly, it is important because of the former CMEA countries’ recurrent hard currency shortage and the need to meet debt service obligations. Exports are also the means of financing the technology transfer required by the former socialist countries.
