Introduction:

The collapse of the socialist economic system in the countries of Central- and Eastern Europe suggested a rapid transformation of the market economy dominated centrally planned economies hope. But in spite of partial successes in macroeconomic consolidation and microeconomic stabilization, this hope has not met. The expected adjustment crisis and some serious reform existing political instabilities show deficits, the a “own” Form of market economy, the transformation process is to mitigate social, is attributable. Western assistance in the form of government transfer payments should be limited in order to overcome the economic depression. The required investment- innovation and dynamism must come from within. But surely the influx of foreign would private capital, especially in the form of direct investment , and the concomitant transfer of technical knowledge and business performance, strengthen the necessary growth process.

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