Norbert Wunner presents an analysis of the main factors which have contributed to the slow and painful structural adjustment process and to the delay of economic reforms in transition countries from a political economy perspective.

1 Introduction.- 1.1 Objective.- 1.2 Facets of transition.- 1.3 On the economics of transition.- 1.4 Structure.- I The economics of transition.- 2 Stylised facts.- 3 Transition in Eastern Europe.- 4 Economic theory and transition.- II Economic restructuring, international trade and factor markets.- 5 Labour re-allocation.- 6 Capital markets and transition.- 7 Conclusions.- References.

Dr. Norbert Wunner war wissenschaftlicher Mitarbeiter von Prof. Albert Schweinberger, Ph.D., am Lehrstuhl für Internationale Wirtschaftsbeziehungen der Universität Konstanz. Heute ist er DAAD Fachlektor in Deutscher Politischer Ökonomie an der London School of Economics and Political Science.