Post-Communism is a name sometimes given to the period of political and economic transformation or "transition" in former Communist states located in parts of Europe and Asia, in which new governments aimed to create free market-oriented capitalist economies with some form of parliamentary democracy.
The policies of most Communist Parties in both Eastern and Western Europe had been governed by the example of the Soviet Union. In most of the countries in Eastern Europe, following the fall of Communist-led governments in 1989, the Communist Party generally split in two factions: a reformist Social Democratic party and a new, less reform-oriented Communist Party. The newly created Social Democratic parties were generally larger and more powerful than the remaining Communist Parties; only in Russia, Moldova, and the Czech Republic did the Communist Party remain a significant force.
The ex-communist social democrats gained increasing popularity when the transition to capitalism began to cause economic problems such as poverty and unemployment. Nearly all of them won national elections in their respective countries at least once in the past 15 years. However, their voters, who were certainly expecting left-wing policies, were very disappointed despite the rapid growth of their respective economies and liberalizing of freedoms such as of speech and a free press: nearly all the ex-communist "social democrats" followed a highly capitalist, neoliberal policy while in power. As a result, many disillusioned left-wing voters have turned to the remaining Communist Parties in recent years.
In western Europe, many of the self-styled communist political parties reacted by changing their policies to a more moderate and less radical course. In countries such as Italy and Germany, post-communism is marked by the increased influence of their existing Social Democrats. The anti-Soviet communist parties in western Europe (for example the Trotskyist parties), who felt that the fall of the Soviet Union vindicated their views and predictions, didn't particularly prosper from it - in fact, some of them became less radical as well.
Several communist states had undergone economic reforms from a command economy towards a more market-oriented economy in the 1980s. The post-communist economic transition was much more abrupt and aimed at creating fully capitalist economies.
All the countries concerned have abandoned the traditional tools of communist economic control, and moved more or less successfully toward free market systems. A summary of the process, containing both economic analysis and anecdotal case studies, can be found in Charles Paul Lewis's How the East Was Won (Palgrave Macmillan, 2005). Although some (including Lewis) stress the beneficial effect of multinational investment, the reforms had important negative consequences that are still unfolding.
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