The West’s Experience and the East
This chapter focuses on private sources of western assistance that may render the planned economy in transition (PET) increasingly capable of operating a full-fledged market economy and explains the situation in the three Central European countries and the former Soviet Union. It identifies the private sources of such assistance, which will stem mostly from transnational corporation (TNC). Concerning the institutional environment of management; the west may provide experience for setting up employers’ organizations. Generally speaking, management is obviously a major area, where the PETs can benefit from the west’s experience. The west’s experience may be of some help in developing all services linked to domestic trade, even though retailing will need to emerge from petty privatization and new capital formation in the PETs themselves. The chapter aims to sketch the type of TNC that is most likely to be involved in passing on various aspects of western experience to the PETs and transforming their economic environment.