Eastern Europe In The World Economy
What were once progressive ideas for reforming economic cooperation among the communist countries have been partly fulfilled, partly made obsolete and partly supplanted by new difficulties. Even a thoughtful and well-informed Hungarian economist such as Csaba of the Institute for the World Economy can throw light on only some of the changed issues.
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When France and Germany, with Italy and the three Benelux countries, made it clear that they were really going to form a customs union, they forced the British government to face a decision it had hoped to avoid. Now Britain's decision to join the Common Market, if reasonable terms can be agreed on, requires the United States to make some major decisions of its own. Our action-or the lack of it-will pose new choices for the rest of the world.
The EU agreement to refinance Greece's debt may have calmed the markets, but ongoing austerity measures across Europe are leave open potentially worrying side effect that policymakers have yet to address: the chance for China to buy sensitive assets at fire-sale prices.
War-ravaged Bosnia has come a long way since the 1995 Dayton Accord. But Bosnia's stability rests on the West's large-scale involvement. Integration remains an unfulfilled hope. When foreign aid tapers off, as it soon will, Bosnia's economy will grind to a halt without major reforms. The world should safeguard Dayton's biggest success -- ending Europe's bloodiest war since World War II -- but hand Bosnia's political and economic future back to Bosnians.

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