chapter  2
26 Pages

Economic restructuring and employment change

ByMichael Dunford, Adrian Smith

Since 1989 the societies of east central Europe (ECE) and the former Soviet Union (FSU) have embarked on a series of transitions involving the replacement of the political and economic structures of Communism with those characteristic of democratic, capitalist market economies. At the same time, these domestic transitions entail the integration of the former Communist economies and societies into a new international political and economic order characterised, on the one hand, by the increasing influence of a number of global institutions, closely dependent on the United States, and, on the other, a subdivision of the world into a small number of powerful and competing economic blocs in North America, Europe and East Asia. Integration into this evolving international order has, in turn, implied an opening up of their economies to foreign investment and their closer integration into a rapidly changing international division of labour.