Transcript Eastern Europe

Eastern Europe
Sydney Wilson
Human Development Index
• 1990- Eastern Europe’s just behind the
HDIs of Western Europe and AngloAmerica
• Has currently slipped to level of Latin
America
• That’s the level of developing country
Communist Rule
• Iron Curtain
• Bolshevik Revolution (1917)- Communist
rule over Russia and Eastern Europe
• Rapid development was achieved in
1950s & 60s under Communist rule
• GDP increased
Theories & Reality
• Karl Marx & Freidrich Engels
• Theories based on developed,
industrialized countries
• Eastern Europe had an agricultural
economy
Plans, Plans, Plans
• Promoted development through economic
activities produced by the government rather
than private citizens
• National planning committee (Gosplan)
developed 5 year plans
• Gave production goals for sectors of country
• 1st plan: promoted heavy industry (iron, steel,
locomotives, etc.)
• 2nd plan: dispersed production facilities from
Europe section of Soviet Union to Asian sections
• 3rd plan: facilities near raw materials
Problems with the PLAN
• Scarce funds were used to meet production
targets rather than for improvements
• Eastern Europe had to import food from Western
Europe
• Orders were not implemented when sent
• Targets impossible to hit
• Environmental pollution
• The PLANs focused on industry rather than
necessities
• Housing shortages
Solutions
• Czech Republic, Hungary, & Slovenia moved
toward the Western European market economy
• With the fall of Communism in East Europe,
people are starting to move on and regain the
comfort they once had.
• But, closing the inefficient businesses from the
Communist era has created unemployment in
Russia.
Not So Bad
• Break-ups of the countries has led to poor
conditions for some and great for others
(the gangsters & people in large cities)
• It’s all about connections and the change
in the economies
• The sharp economics that are shown
today look worse due to the inflated
economy of the Soviet Union
Long Lasting Friction
• The multiple countries are now free to
bicker among themselves
• But regardless, they are recovering and
working towards a common goal.
Question
What is the reason behind
Eastern Europe’s decline in
the Human Development
Index?