ABSTRACT

In the aftermath of the collapse of socialism in Eastern Europe, a mass migration set in which can be compared in direction and magnitude only to the great population movements after the fall of the Roman Empire during the fifth century. People stay where they are or migrate to distant locations for various reasons, one of which is the expected future income attainable at alternative locations. Other things being equal, people will move from lower-to higher-income areas. Hence, migration patterns are highly relevant in any comparative analysis of economic systems. The flight of the people of Eastern Europe is a flight from the impoverishment and total loss of independence from political control created by socialism. The secessionist movements across Eastern Europe are the best possible institutional device for advancing the popular goal of quick economic recovery. Secession, that is political disintegration, is always compatible with economic integration. However, territorial expansion of government power—political integration—may/may not further economic development.