Progress in Eastern Europe: Effects on Austria/Hungary

With the fall of communism came a whole new era of reform and rebuilding in eastern Europe. Countries were no longer divided by ideological competition and the cold war, and as the situation progressed, more and more independent states sprouted up. The transitions from communism to nationalism were tough, but many observers have agreed that Hungary, along with Poland and the Czech Republic, were most successful in the transition. Each of these three countries me the critical challenge of economic reconstruction more successfully than Russia, and each could claim to be the economic leader in easter Europe. The causes for these successes were considerable experience with limited market reforms before 1989, flexibility and lack of dogmatism in government policy, and an enthusiastic embrace of capitalism by a new entrepreneurial class.