Annual Paper of "World Economies" "Creating Market Economy in Eastern Europe" ПРИМЕЧАНИЕ: Раздел 3 данной курсовой работы и имеет отношение только к нашей республике, просьба обратить на это внимание и для каждого конкретного случая его необходимо переделывать под свой регион. Carried out By nd year student The Summary
    Introduction
     1. Meaning of market Economy and Tasks of the Transitions. 2. The Emergence of Market Economy in European countries. 2.1 . The Transition to a Market Economy. 2.2. Poland and Hungary as the best example of transition in the East Europe. 3. Moldova's way to an open economy. Conclusion.
     Introduction
    This paper is oriented toward the problems of transition and creating in countries of Eastern Europe, namely Poland, Hungary, all of which are attempting to make the transition under a democratic, parliamentary form of government.
    The last new years have witnessed truly extraordinary events in the formally communist societies. Under newly established conditions of free speech and freedom of organization, communist principles of political and economic control have been widely repudiated, and communist governments have been swept aside, replaced by governments committed to democratic principles and a market economy. While in some countries and parts of countries former communist have not been decisively dislodged, in almost all cases communism has lost whatever remaining legitimacy it possessed, and it most of these societies the crucial economic issue has suddenly changed from reforming the socialist planning system by the introduction of market-like elements to moving to a market-economy with private ownership of most of society's assets.
    There are several reasons why the task of designing this transition is fascinating, especially to economists.
    First, the problem in new: no country prior to 1989 had ever abandoned the communist political and economic system.
    Second, the experience to date indicates that countries attempting transition face a number of common problems and difficulties. While there are important differences in the inherited situations and the choices made by governments of these countries, the similarities in the problems they face and the difficulties they are encountering suggest that there is logic to the transition process.
    Third, the absence of any close historical parallels and the limited experience economics in transition offer an opportunity and a challenge for development of normative transition scenarios. This turn out, however to be extraordinarily difficult to construct.
    Finally, the problems are not waiting for annalists' solutions; decisions currently being made may lead to an evolution with irreversible consequences.
    
    
    
    
     1. Meaning of Market Economy and the Tasks of the Transitions.
    
    That economic system which brings together natural resources, labour supply and technology and which is principally privately owned and were government has to some extent always been involved in regulating and guiding the economy, has been referred to as "Market Economy". Yet, despite this history of government intervention, individuals in that country have always been able to choose for whom they will work and what they will buy.
    Now 3 groups make decisions and it is their dynamic interaction that makes the economy operate. Consumers, producers and government make economic decisions on a daily basis, the primary force being between producers and consumers; hence, the market economy designation.
    Consumers look for the best values for what they spend while producers seek the best price and profit from what they have to sell.
    Government, at state and local levels, seeks to promote the public safety, provides social safety-net, ensures fair competition and also provides a range of services believed to be better performed by public rather include education, health service, the postal service road and railway system, social statistical reporting and, of course, national defense.
    In this market economy system, economic forces are unfettered, supply and demands build up the price of goods and services. Entrepreneurs are free to develop their business unless they can provide goods or services of a quality and price to complete with others; they are driven from the market.
    By and large, there are three kinds of business:
    1) those started and managed personally by single entrepreneurs;
    2) the partnership where two or more people share the risks and rewards of a business;
    3) the corporation, there stock holders as owners can by or sell their shares at any time on the open market; this latter structure permits the amassing of large sums of money by combining investment, making possible large-scale enterprise.
    
    Innovations in economic theory in the last two decades undoubtedly affect the way economists look at the transition problem and have probably made them more pessimistic about the ease with which it can be accomplished. Developments in transaction cost economics, the economics of information, the new institutional economics, and evolutionary approaches to economics have sensitized economists to the vital role that institutions play in economic process. ............