Divergence Among Eastern European Countries in Economic Performance Essay

Divergence Among Eastern European Countries in Economic Performance - Essay Example This essay provides a thorough analysis of the different economic growth patterns in the Eastern European countries with evaluation of the impact of different factors on the economic development of that countries. Eastern European countries include Serbia, Kosovo, Russia, Czech Republic, Albania, Croatia and several others. These countries are popularly known for their unity in the historical era of communism and due to their locations and political history. Russia was the mainland for the communism and among the Eastern European countries. Communism was a set of governance that dominated the East in comparison to the West which was the USA that employed capitalism. After the world war two, the capitalism and communism ideologies of economic governance emerged. It is due to these two ideologies that the countries in Eastern Europe merged to campaign for the spread of communism in the other parts of the world. One of the reasons that explain the divergence in economic performance in Eastern Europe was the cold war disparities where some countries remained neutral and thus lost no economic bonds with neither of the two superpowers, USA and USSR. Following the loss of resources to other countries, the communists suffered an economic recession after the cold war especially small countries that depended on the great Russia for wealth and funding. However for the countries that remained neutral during the war, they escaped the recession as they would still acquire funds and conduct investments with the allies of USSR. In addition, the government of the Serbians who were the most neutral members of Eastern Europe continued with a stable running of their economic, social and political systems. The Serbians, with help of USA achieved greater heights of economic success compared to the other countries in the East hence the huge difference in the economic performance of the communists and the Serbians. The USSR being a superpower was now inferior to the US after losing the fight over the two ideologies. However, the USSR did not suffer greatly economically as the inferior nations since it still had influence and remnants of resources that were not incorporated in the campaign for communism. Therefore, the USSR and Serbia were at an average situation and the economic recession did not hit them as hard as the other small countries. An additional factor that caused the rift in the economic performance of the Eastern Europe countries is the health systems of the countries. This is a social factor that con tributed greatly of the disparities in economies in that a huge amount of money was invested in the health sector leading to instabilities of the other sectors of the economy. The economy of USSR supported the health and well being of its citizens and those of neighboring countries and consequently funds were shifted and the recession took tall in the country. The diseases of the patients require more medicine and resources in to the health industry which the government could not manage at that instance. Furthermore the smaller countries like Croatia and Kosovo did not handle the Health