ABSTRACT
The transition the countries of Central Europe are undertaking - from command to market economies and from communist to civil societies - is unprecedented. Central European countries constitute an emerging consumer market of 65 million people with an anticipated per capita purchasing power of the same order as Spain within 10–15 years if reforms go well. Ensuring the success of the political and economic transformation of Central Europe constitutes one of the greatest challenges confronting the international community. On the donors’ side, the problems include cumbersome bureaucracies, inappropriate procedures and haphazard coordination. On the recipients’ side, problems include weakness of administrative capacity, erratic in-country coordination and grave deficiencies in infrastructure. The reaction against overspending by the former communist regimes of the region, coupled with sensitivity concerning the misuse of public funds under these regimes, has made the three governments understandably prudent in accepting loans.
