Transition of central and eastern european countries from planned to market economy and the helps of European Union

iiiTRANSITION OF CENTRAL AND EASTERN EUROPEAN COUNTRIES FROMPLANNED TO MARKET ECONOMY AND THE HELPS OF EUROPEAN UNIONABSTRACTSocialist system collapsed in the early 1990s and 26 new states emerged. All of thosenew states experienced transition from planned to market economy. Not only Central andEastern European countries (CEECs) but also Commonwealth of Independent States (CIS) arecalled as transition economies.Each of the transition country has different geographical, economical, culturalbackgrounds and habits. The differences in the initial conditions still valid after more than 15years in the transition process. CEECs have more advantages than CIS in terms ofgeographical nearness, cultural and historical ties with European Union (EU) countries.The transition from socialism to capitalism is a process that experiences of othercountries can not be copied. Some countries launched shock therapy and some gradualism. Inthe first phases of transition, countries faced with serious problems in unemployment,inflation and growth rates.In the first part, the basis of economical systems and the collapse of communism willbe examined. The second part will deal with the mechanisms and transition phases. An effortsand reforms to access EU, agreements between EU and CEECs, the helps and pre-accessioninstruments of EU are the subjects of the third part.