The former socialist countries' transition to market economies is one of themomentous transformations in modern history. The pace and degree of success have varied widely, andthere is increasing divergence in performance, structure, and institutions among the transitioneconomies. These differences are largely determined by country-specific conditions and politicalconfigurations. This book compares the experiences of the countries involved over the first tenyears to determine what has worked and failed, as well as the nature of the challenges that lieahead.After two overviews of the transition process to date, the book presents eleven specificcountry cases: the reunification of East and West Germany; the most successful transition countries,Poland, Hungary, the Czech Republic, Croatia, and Slovenia; the less successful experience ofcountries in the former Soviet Union, namely, Russia, Belarus, and Ukraine; and the dissimilardevelopments in two major Balkan countries, Bulgaria and Romania. The final section summarizes thepolicy lessons of the different experiences. The contributors, who include ministers, governmentofficials, academics, and leaders of international monetary institutions, stress the need forgreater emphasis on institutional building and on the enforcement of contracts.

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Marko Skreb, former Governor at the Croatian National Bank, is Advisor to the Governor of the Bank of Albania.

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