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This study attempts to contrast the recent experience of economic development in Eastern Germany and the Czech Republic. It provides a comparative account assessing the transition from central planning to a free market economy. The book aims to highlight the different paths that the two economies have taken, illustrating the strengths and weaknesses of these two different strategies, addressing the key question as to whether the relative success of the two economies can point to a special policy regime wich might aid economic transition in other former communist countries.