You are browsing the archive for 2019 November 09.

Avatar of admin

by admin

Three Decades After the Fall of the Berlin Wall

November 9, 2019 in Economics

By Tanja Porčnik

Tanja Porčnik

The fall of the Berlin Wall on 9 November 1989 was not only the beginning of the reunification of the Germans as the people of Berlin brought down a monstrous physical barrier that cut through their city since 1961, it was also one of several events that in the months and years to come would have more than 100 million people turn their back to communism, also because of their fortitude to steer their economies out of socialism toward the market, writes Tanja Porčnik is a Senior Fellow of the Fraser Institute specialising in economic and human freedom studies.


Prior to the fall of the Iron Curtain, the former socialist economies — to the East of the now infamous barrier dividing Europe — varied considerably in their degree of openness, soundness of their institutions, economic growth and the development process. Similarly, these countries opted for different paths of market liberalisation, some of them moving rapidly and with great strides to reform and liberalise their economies, while others were only undertaking gradual and few transitional steps.

Today, thirty years later, unsurprisingly, public policies and political institutions of the former socialist economies do not equally support economic freedom. However, notably, they support it to a greater extent than they did before the 1990s.


A high pace of economic liberalisation


Providing a quantitative assessment of the degree of market liberalism, the Fraser Institute Economic Freedom of the World index displays that the highest levels of economic freedom in Eastern Europe, Caucasus and Central Asia in 2017, the most recent data available, were in Georgia, Estonia, Lithuania, the Czech Republic and Latvia, while the lowest levels of economic freedom were in Ukraine, Tajikistan, Azerbaijan, Belarus and Moldova.




As the data show, …read more

Source: OP-EDS