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Free trade with the former COMECON countries as unequal exchange

In: A Modern Guide to Uneven Economic Development

Author

Listed:
  • Marta Kuc-Czarnecka
  • Andrea Saltelli
  • Magdalena Olczyk
  • Erik S. Reinert

Abstract

This chapter offers different narratives about the benefit of both free trade and the enlargement of the European Union in 2004-2007 for Central and Eastern European (CEE) countries. We compare old, pre-2004 EU countries against CEE countries that became part of the EU in 2004-2007. We also look at CEE countries that have not become part of the EU: Belarus, Moldova, and Ukraine. Two periods are considered: a first one from the end of the Eastern European Trade zone (COMECOM) in 1991 to the present day, and a second one following the enlargement 2004-2007. Our analysis identifies unfavourable outcomes: the CEE countries that have lost in the process of integration in the economies of both the European Union and the world. We identify a similar pattern of de-industrialisation and migration taking place in Latin America resulting from the free-trade shock that started in the 1970s.

Suggested Citation

  • Marta Kuc-Czarnecka & Andrea Saltelli & Magdalena Olczyk & Erik S. Reinert, 2023. "Free trade with the former COMECON countries as unequal exchange," Chapters, in: Erik S. Reinert & Ingrid H. Kvangraven (ed.), A Modern Guide to Uneven Economic Development, chapter 12, pages 255-276, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18717_12
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    Keywords

    Development Studies; Economics and Finance;

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