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This volume offers an applied economics interpretation of the modernization process which followed the collapse of the Soviet empire and of the state socialist experiment. From 1984-1994 a loss of employment and production was recorded in Eastern Europe which exceeded that of the great depression of 1929-1933. This book questions why conventional economic doctrines seem to have failed in some countries but have been more successful in others. In attempting to build a bridge between abstract economic theory and the empirical material available in Eastern Europe, it adopts a broad framework of analysis making use of data and theories drawn from sociology, history and political science.