The New Periphery

Abstract

When the Berlin Wall came down in 1989 and the East European countries threw themselves in friendship into the West's embrace, no one wanted to think about the problems and difficulties that lay ahead. A few years later, when the Soviet Union disintegrated and the Russian Federation that rose from its ruins declared a resolute transition to capitalism, everyone already knew that the transformations would be painful. This was evident in the experience of the formerly fraternal countries in Eastern and Central Europe, even as the Soviet economy was undergoing a grave crisis, from which there could be no exit without losses. However, neither in 1989 nor in 1991 did many doubt the correctness of the path chosen or that ultimately the triumph of capitalism was guaranteed. With that triumph would come an effective economy, freedom, and prosperity. Some dissenters ventured to protest, but no one wanted to listen to them.