- What effect did the restructuring that followed the revolutions have on eastern European economies? - The whole region was shaped in the interests of Western capitalism. In 1990 large institutions, such as the IMF and World Bank, advocated “shock therapy” to restructure capitalism. In reality, this meant all “shock” and no “therapy”. Through privatisation and foreign investment they bought up the most profitable firms and the rest were left to sink or swim. In the period after 1990 factories closed down, while unemployment rose and workers’ wages were held down. This also meant that the former Eastern Bloc ended up being more on the periphery of production.
Posted on: Thu, 06 Nov 2014 10:39:05 +0000
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