ABSTRACT
This chapter deals with the causes of the economic decline. It discusses the impact of the economic crisis on the thinking of the East European rulers. The chapter examines that many citizens of the East European countries believed that they faced an economic crisis. It presents a possible Marxian framework for interpreting technology's role. The chapter examines the evidence for the forces-of-production view. It explains that all surveys taken under the period of Communist rule underestimate the degree of dissatisfaction. The chapter examines that a majority of the population in Hungary and Poland was unhappy with the economic situation actually indicates a high level of deprivation. Within the former Communist leadership, there is widespread agreement that the country faced economic problems, although there are differing opinions on the extent of the crisis. The chapter concludes that the changes in technology were the most important factor explaining the economic downturn that began in the mid-1970s.
