It is by now more than a decade ago that the formally centrally planned economies in Central and Eastern Europe have started to transform into market economies when the collapse of the Soviet system was confirmed in 1989. In fact, they constitute a unique historical example with a large set of economies undergoing this extremely drastic systemic change within a very short period of time. The adoption of a new model based on free market economy supports the rebuilding of one Europe which will benefit from high economic and social growth potential as well as political stability and security.
One essential characteristic of a free market economy is a high proportion of services. Realizing this quality in the transition economies signifies a great challenge as their service sector was extremely underdeveloped in the planned economies.
In this paper, the development of the service sector in the transition economies of Central and Eastern Europe are depicted on the background of the economic characteristics of their socialist past. In this portrayal, both domestic growth and international trade of services will be accounted for. Finally, it will be discussed in which way the service sector represents a strong impetus in the fight against unemployment and hence contributes to a sustainable development in the future.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Background
- Services - A definition of the tertiary sector in developed market economies
- Economic features of planned economies and the relevance of services
- The Development of Services in the Domestic and International Trade of Transition Economies
- The growth of the service sector since 1990
- Trade in Services
- Contribution to Development Sustainability
- Resume and Future Outlook
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to analyze the development of the service sector in transition economies, specifically focusing on Central and Eastern Europe. It explores the historical context of these economies' transition from centrally planned systems to market economies, examining how the service sector has evolved within this dynamic shift. The paper also examines the role of services in driving economic growth and contributing to sustainable development in these regions.
- The development and characteristics of the service sector in transition economies
- The impact of economic transition on the service sector
- The role of services in driving economic growth and job creation
- The contribution of the service sector to sustainable development
- The challenges and opportunities faced by the service sector in transition economies
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the topic of service sector development in transition economies, providing background information on the transition process and its implications for the service sector. It also highlights the importance of services in a market economy and the challenges faced by transition economies in developing their service sectors.
The second chapter delves into the definition of services in developed market economies and explores the unique features of the service sector. It contrasts the characteristics of services with those of goods and highlights the role of services in economic growth and productivity. The chapter also discusses the importance of strategic business services and the role of organizational services in shaping economic development.
The third chapter examines the economic features of planned economies and the relevance of services within this context. It explores the historical development of planned economies and the reasons for the underdeveloped service sector in these systems. The chapter also outlines the challenges and opportunities associated with transitioning from a planned economy to a market economy, highlighting the crucial role of the service sector in this transformation.
Schlüsselwörter (Keywords)
Transition economies, service sector, economic development, market economy, planned economy, industrial restructuring, sustainable development, strategic business services, organizational services, trade in services.
- Quote paper
- Master of International Business Administration Carolin Wobben (Author), 2003, The development of services in transition economies, Munich, GRIN Verlag, https://www.grin.com/document/20679
