Eastern bloc in the context of "Transition economy"

⭐ In the context of transition economies, the differing approaches taken by nations within the Eastern Bloc during their shift from planned to market economies primarily concerned…

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⭐ Core Definition: Eastern bloc

The Eastern Bloc, also known as the Communist Bloc (Combloc), the Socialist Bloc, the Workers Bloc, and the Soviet Bloc, was an unofficial coalition of Communist states of Central and Eastern Europe, Asia, Africa, and Latin America that were aligned with the Soviet Union and existed during the Cold War (1947–1991). These states followed the ideology of Marxism–Leninism and various types of socialism, in opposition to the capitalist Western Bloc. The Eastern Bloc was often called the "Second World", whereas the term "First World" referred to the Western Bloc and "Third World" referred to the non-aligned countries that were mainly in Africa, Asia, and Latin America but notably also included former pre-1948 Soviet ally Yugoslavia, which was located in Europe.

In Western Europe, the term Eastern Bloc generally referred to the USSR and Central and Eastern European countries in the Comecon (East Germany, Poland, Czechoslovakia, Hungary, Romania, Bulgaria, and Albania). In Asia, the Eastern Bloc comprised Mongolia, Vietnam, Laos, Kampuchea, North Korea, South Yemen and China. In the Americas, the countries aligned with the Soviet Union included Cuba from 1961 and for limited periods Nicaragua and Grenada.

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👉 Eastern bloc in the context of Transition economy

A transition economy or transitional economy is an economy which is changing from a centrally planned economy to a market economy. Transition economies undergo a set of structural transformations intended to develop market-based institutions. These include economic liberalization, where prices are set by market forces rather than by a central planning organization. In addition to this, trade barriers are removed, there is a push to privatize state-owned enterprises and resources, state and collectively run enterprises are restructured as businesses, and a financial sector is created to facilitate macroeconomic stabilization and the movement of private capital. The process has been applied in China, the former Soviet Union and Eastern bloc countries of Europe and some Third world countries, and detailed work has been undertaken on its economic and social effects.

The transition process is usually characterized by the changing and creating of institutions, particularly private enterprises; changes in the role of the state, thereby, the creation of fundamentally different governmental institutions and the promotion of private-owned enterprises, markets and independent financial institutions. In essence, one transition mode is the functional restructuring of state institutions from being a provider of growth to an enabler, with the private sector its engine. Another transition mode is change the way that economy grows and practice mode. The relationships between these two transition modes are micro and macro, partial and whole. The truly transition economics should include both the micro transition and macro transition. Due to the different initial conditions during the emerging process of the transition from planned economics to market economics, countries uses different transition model. Countries like the People's Republic of China and Vietnam adopted a gradual transition mode, however Russia and some other East-European countries, such as the former Socialist Republic of Yugoslavia, used a more aggressive and quicker paced model of transition.

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Eastern bloc in the context of Securitate

The Department of State Security (Romanian: Departamentul Securității Statului), commonly known as the Securitate (pronounced [sekuriˈtate], lit.'Security'), was the secret police agency of the Socialist Republic of Romania. It was founded on 30 August 1948 from the Siguranța with help and direction from the Soviet MGB.

The Securitate was, in proportion to Romania's population, one of the largest secret police forces in the Eastern bloc. The first budget of the Securitate in 1948 stipulated a number of 4,641 positions, of which 3,549 were filled by February 1949: 64% were workers, 4% peasants, 28% clerks, 2% persons of unspecified origin, and 2% intellectuals. By 1951, the Securitate's staff had increased fivefold, while in January 1956, the Securitate had 25,468 employees. At its height, the Securitate employed some 15,000 agents and almost half a million informants for a country with a population of 23 million by 1989. The Securitate under Nicolae Ceaușescu was one of the most brutal secret police forces in the world, responsible for the arrests, torture, and deaths of thousands of people. Following the Romanian Revolution in 1989, the new authorities assigned the various intelligence tasks of the Securitate to new institutions.

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Eastern bloc in the context of Alexander Dubček

Alexander Dubček (Slovak pronunciation: [ˈaleksander ˈduptʂek]; 27 November 1921 – 7 November 1992) was a Czechoslovak and later Slovak statesman who served as the First Secretary of the Presidium of the Central Committee of the Communist Party of Czechoslovakia (KSČ) (de facto leader of Czechoslovakia) from January 1968 to April 1969 and as Chairman of the Federal Assembly from 1989 to 1992 following the Velvet Revolution. He oversaw significant reforms to the communist system during a period that became known as the Prague Spring, but his reforms were reversed and he was eventually sidelined following the Warsaw Pact invasion in August 1968.

Best known by the slogan, "Socialism with a human face", Dubček led a process that accelerated cultural and economic liberalization in Czechoslovakia. Reforms were opposed by conservatives inside the party who benefited from the Stalinist economy, as well as interests in the neighbouring Soviet-bloc who feared contagion, western subversion, strategic vulnerability, and loss of institutional power. For reasons of institutional interests in the Soviet Union such as those of the military and KGB, false reports, and the growing concern among the Soviet leadership that Dubček was no longer able to maintain control of the country, Czechoslovakia was invaded by half a million Soviet-led Warsaw Pact troops on the night of 20–21 August 1968. This was intended to enable a coup by conservative forces. That coup, however, could not materialize due to lack of a viable pro-Soviet replacement leadership and the unexpected extraordinary popularity of Dubček and the reformist leadership. Soviet intervention ushered in a period of maneuver between conservatives and reformers where conservatives relied on Soviet influence to shift the balance of power, reversing reforms of the Prague Spring.

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