ABSTRACT
This chapter describes the practical functioning of the communist system as well as its insidious legacy. It argues the application of communist precepts varied from country to country, it had a damaging impact both on the work-place and the economy across the entire region. The chapter discusses the course and effects of the transformation processes, with special emphasis being placed on the controversies surrounding privatization one of the key constituents of the Eastern European reforms. It argues that even though ex-communist countries have made considerable socio-economic progress, they still lag behind their Western counterparts in terms of most socio-economic indicators. The chapter has demonstrated that some of them most notably Estonia is more business friendly and technologically savvy than such traditional European powers as France or Italy. Poland, faring comparatively badly in international rankings of business friendliness and technological advancement is unprepared to face the challenges of a new knowledge-based era.
