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147983 1 (1992-01-01)

handle is hein.gao/gaobacwkr0001 and id is 1 raw text is: 










   RESPONDING TO
   THE  FALL OF
COMMUNISM  IN El ROPE

        3


Peter  13v/sina


WHAT EASTERN




EUROPE NEEDS


NOW


      t
-.7


       F:
 r

'N
         N


1


Op-


Involvement by the West is in its own best interests.

But   what   is the best way   to help?


   HEF:UPHORIA RESUlI[NG from the fall  of
        Communism  in Eastern Europe' has
        evolved into the somber realization that a
long, difficult period lies ahead. Conditions left by
the previous regimes will make it hard for the
various countries to make the transformation to a
market economy. Without substantial help from
the West, the gains made thus far may he lost. Yet
the level of help that is needed may be higher than
Western governments are willing to support. The
best long-term hope for the region lies in the
creation of a business climate and infrastructure
that can attract foreign private-sector investment.
   At the moment, the business climate is too
risky and the business infrastructure too inderde-
veloped to attract sufficient foreign participation.
Given these constraints, substantial technical
assistance and advice can provide a low-cost
method of preparing the countries for the needed
foreign investment. In the meantime, greater
access to Western markets and continued financial
assistance would provide some relief to the region.


PE [E R BYLSIA is an evaluator working on lstern
European trade and investment issues in G's   Ar o-
pean Offiei. TAe 'zews he expresser in thie aidmie alr Air
own and do not necessarily trIlea those of GI (.


.1


FALL/WINTER 1992 59

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