This book is divided into six chapters, each addressing a significant aspect of the economic, political, and social transition in Central and Eastern Europe over the last several decades. We integrate historical data with the most recent political and economic reporting in our analysis, including our assessments, opinions, and experience (where appropriate) as scholars, researchers, consultants, and global citizens.
Chapter 1 provides the reader with an introduction to the historical context for European integration, including the political structures and economic relationships forged in the post-World War II period. We pay close attention to the impact of nationalist histories and geography on the politics of integration, and include brief introductions to each country included in later chapters of this publication.
Chapter 2 focuses more specifically on the relationship between the European Union and the economies of states in Central and Eastern Europe. We examine the political, economic, and security considerations that complicated the federalist relationship in each state, and end with a brief discussion of the adoption of the euro.
Chapter 3 provides an overview of these Eastern European countries in transition from a state-centered economy to a free-market, decentralized one. We provide an overview of the geopolitical and economic challenges of both, the Central and Eastern European bloc and the Commonwealth of Independent States blocs. We also discuss the economic challenges faced by these economies regionally, as well as in consequence of external forces brought by advanced economies, such as the global financial contagion resulted of the economic crisis that started in 2007, as well as currency wars and its consequences to local and global economies.
Chapter 4 discusses the economic impact of integration of CEE countries as they attempt to make their economic transition and to integrate with the European Union and other free-market economies. We look at the economic growth and challenges these countries face, as well as how the indebtedness of the advanced economies are impacting these economies and prompting them to launch economic countermeasure to protect their own economies.
Chapter 5 discusses the many challenges for foreign investors and multinational corporations (MNCs) in entering Eastern European markets, from skill mismatches and educational systems, to the impact of economic restructuring, legal framework, and trading policies. This chapter also provides an overview as to the main reasons why MNCs fail in Eastern Europe markets.
Chapter 6 introduces multiple frameworks for the study of political risk, and provides an overview of this important field for the reader. The chapter proceeds with country-based case studies that include Freedom House scores, electoral results, and in-depth political analysis to assess the potential risk created by stable or reforming political institutions in each CEE state.
Extensive, user-friendly appendixes that provide additional country-specific case studies and analysis for the reader follow these chapters. Our hope is that this work will provide an introduction to the historical and political context of the culturally rich, vibrant, and rapidly changing region of Central and Eastern Europe. We have balanced this introduction with breadth and depth for the international business professional who desires to engage in the significant opportunities available to those willing to explore this very important region in transition.