Written by Tahsin Mahtab (Department of Sociology, University of Dhaka)
Into the Context
We are all too often in denial of the importance of political economy to humanity. For many, markets and economics are a secondary consideration when it comes to issues of social and environmental justice. Each day we go about our everyday lives, hardly giving a thought to what is happening economically beyond the job market and what has been achieved by governments and companies on economic wealth generation. This is why a look at some of the more controversial but also unheralded changes since the fall of communism across Europe is so important: not because they will bring us closer together by reducing differences between rich and poor, but instead because they can help us understand how economies work in order to then make informed decisions about how to change them for the better.
“Rises of every kind — economic crises more frequently, but not only these — in their turn increase very considerably the tendency towards concentration and monopoly.”
-Vladimir Lenin, Imperialism: The Highest Stage of Capitalism
Central and Eastern Europeans Approve of Shift to a Multiparity System and a Free Market Economy
The long-term political, economic and social transformation of Central and Eastern Europe has been one of the most dramatic in modern history. The region, once known as the “Iron
Curtain,” has moved from communism to free markets and democracy.
Central and Eastern Europe is not a homogeneous group. In fact, as we will see below, it is more like a collection of separate countries within one bloc. The process of transition started with the collapse of the Soviet Union in 1991 and continued until today.
In 1990 there were 31 countries in Central and Eastern Europe; today there are 43.
In 1990 there was one communist party in Central and Eastern Europe; today there are three (Hungary, Poland, Romania).
In 1990 there was one communist trade union; today there are five (Czech Republic, Estonia, Hungary, Latvia, Lithuania).
The fall of communism has been accompanied by a shift from one-party states to multiparty systems (in most cases) and from centrally planned economies to free markets (in some cases
The fall of communism in Eastern Europe and the former Soviet Union has been a long time coming. Yet it is still a shock to many Westerners to realize that, for most of those countries, it was a very recent event. In fact, only one-third of those surveyed say they remember when communism ended in their country.
In contrast, we can see that young people are more likely to approve of movement to a Capitalist economy than older generations. This could be because younger people have never lived under communism or because they were born after the fall of communism was complete. Either way, it is clear that younger people are more open to capitalism than older generations across Europe.
In a luxury tone: In the years since the fall of communism, people with more education have been shifting more towards a market economy. This is especially true in East and Central Europe: in most countries, only those with at least some college education are likely to work in a company with more than 500 employees. But in some countries, such as Hungary and Poland, the share of people with a university degree or higher is much higher than in other countries.
This shift may be related to two factors: first, it has become easier for workers to find jobs with companies that operate in a market economy; second, some people who would otherwise have preferred a job in a state-owned company now see no alternative but to work for private companies that operate as free agents.
In addition to this shift towards market economies among educated individuals, there has also been an increase in the number of “self-employed” workers (those who are self-employed by choice rather than necessity). This trend seems especially pronounced among younger workers and those with only secondary education or less.
There is a mixed view on whether the economic situation changed for the better after the end of communism. Some people argue that it changed for the worse and some argue that it changed for the better.
The arguments in favor of this statement are that there was more freedom to do what one wants and less government control over personal finances. The arguments against this statement are that there was not enough food, electricity, or money to provide a good life.
In the time period after the end of communism, many people believed that the economic situation had improved. However, there are also some who believe that it did not change for better.
This is because while some countries in Eastern Europe have done well economically in this time period, other countries have been struggling with poverty and unemployment. This means that there is a general opinion that the economic situation has not changed for better but it depends on which country you are looking at.
Most Russians Characterize End of USSR as Great Misfortune
The end of the Soviet Union had a huge impact on Russian society. The majority of Russians, approximately 73% according to a recent poll by the Levada Center, characterized it as a great misfortune.
This section will be about how the collapse of the Soviet Union impacted Russian society and why so many people in Russia are opposed to it.
The end of the Soviet Union is seen as a great misfortune by many Russians. The dissolution of the USSR led to economic and political chaos, which was followed by a deep and long-lasting crisis.
In 1990, the Russian economy had declined more than 50% from its 1989 level and it did not start recovering until 1994. Russia’s GDP was only about $200 billion in 1994, about half of what it had been in 1989.
Germans View Unification Positively But Feel the East Has Been Left Behind Economically
The reunification of Germany after the fall of the Berlin Wall in 1989 was a cause for much celebration. The majority of Germans viewed it as a positive event and believed that it would improve their country economically. However, many citizens from Eastern Germany felt left behind economically and resented the West for taking advantage of them. This resentment led to a rise in extremism and violence, which culminated in the terrorist attack on German parliament in 2016.
There are many reasons why East Germans feel resentful towards West Germans. The most important ones are:
-West Germans had more opportunities to find jobs than East Germans did because they were more educated -West German companies took advantage of East German workers by paying them less than they’re worth
-East Germans felt like they were not given enough time to adjust to life after reunification
The section gives a detailed account of how the Germans view unification. They feel that the East has been left behind economically and they are not getting the same opportunities as people in West Germany.
In 1990, when the Berlin Wall fell, East Germany was in a state of economic collapse. The unemployment rate was at an all-time high and people were living in poverty. The East had to go through extensive reforms to get back on track and it is still struggling with its economic situation which is one of the reasons why many Germans feel that unification has not been successful.
This section is about how Germans view unification positively but feel that East Germany has been left behind economically.
Politicians and Business People Seen as Gaining from Changes Since the End of Communism, More So than Ordinary People
For instance, the changes seen in the Polish economy since the end of communism can be attributed to a number of factors.
The first is that politicians and business people have gained more from these changes than ordinary people. This is because they are able to take advantage of their connections and knowledge to create wealth for themselves while the majority of Poles are left struggling on low wages.
Furthermore, there has been a rise in inequality with many Poles living in poverty. The unemployment rate has also risen with many young people not able to find work, which has caused frustration among many Poles who are struggling financially.
The rise of capitalism and the fall of communism have had a significant impact on the lives of ordinary people in Eastern Europe. Many politicians and businesspeople in Eastern Europe are seen as gaining from this change, more so than ordinary people.
In the early 1990s, when communism collapsed in Eastern Europe, many politicians and businesspeople were able to take advantage of the situation. They were able to use their connections with communist party officials to get access to state property at very low cost.
Central and Eastern Europeans Say Post-communist Era Has Had Both Positive and Negative Effects on Society
When questioned if the modifications since 1989 and 1991 have been advantageous in the post- communist time, people usually assert that education, the standard of living, and pride in their nation have been improved.
Although, they observe the negative aspects too and there are prominent discrepancies between countries concerning the overall benefits of these alterations. For instance, a majority of Poles, Lithuanians, and Germans believe that the changes have had a favorable affect in every category being questioned including education, standard of living, pride in their country, spiritual values, law and order, health care, and family values.
On the other hand, roughly half or fewer Bulgarians, Ukrainians, and Russians think that the changes have had a good influence concerning the different issues, apart from the impact on pride in their nation among Russians (54%) and Ukrainians (52%).
Opinions in Slovakia, the Czech Republic, and Hungary are more balanced, with people normally observing the merits of the changing standard of living.
The changes in Germany have been a major factor in the rise of the conservative Christian parties. The Christian Democrats (CDU) and their allies, the Christian Social Union (CSU), are now the largest political parties with about 40 percent of seats in parliament. They are also the biggest party in state legislatures and governorships.
The CDU has long been seen as one of Germany’s most important political parties, but its growth since 1989 has been rapid. In recent years it has become more popular among younger voters and is now considered to be a credible alternative to other parties such as Chancellor Angela Merkel’s Christian Democratic Union (CDU). The CSU is also gaining popularity among younger voters, especially those who support immigration and integration into German society.
In addition to these two main parties, there are several smaller ones that have gained ground recently: Alternative for Germany (AfD), which was founded by several former members of the AfD; Die Linke, which is led by former SPD member Frauke Petry; and Die Grünen, led by Martin Schulz.
The AfD is an extreme right-wing group that has gained some traction among young people due to its strong anti-immigration stance. It was founded by far right politician Alexander Gauland who was expelled from his university teaching position after he called for “the death
penalty” on immigrants. This group also supports banning Muslims from entering Germany or banning all refugees altogether.
References
Richard Wike, Jacob Pousher, Laura Silver, Kat Devlin
Pew Research Center, October 14, 2019
European public opinion three decades after The fall of communism