Overview

In the early years following the break-up of the Communist system, people living in the Europe and Central Asia (ECA) region experienced large-scale and swift economic and political changes.  These changes affected all levels of social life: society as a whole (societal level), social groups and social organizations; families and social networks; and individuals.  Throughout the region, these changes led to increased poverty, inequality, and vulnerability - and damaged the traditional means by which families and communities helped each other cope with adverse conditions.

Since the end of the 1990s, growth has rebounded in response to reforms, particularly in the countries where the EU accession has acted as a powerful catalyst for institutional change.  Many of these countries have demonstrated encouraging progress; populations now enjoy greater personal and political freedom, and space for economic innovation and growth has opened.  In many of the CIS countries, however, incomplete reforms have worsened the impact of poverty and inequality, and fostered increased corruption.  For example, market reforms, including agricultural enterprise restructuring remain incomplete (except for Kyrgyz Republic) in Central Asia, while many CIS governments continue to restrict the freedom of citizens to form interest groups or parties.

Given the systemic and profound nature of the political, institutional, and economic changes, achieving stability and prosperity depends on establishing sound economic policies along with accountable, well-functioning institutions that enjoy sufficient social support to implement those policies.  The social support depends on the inclusiveness and responsiveness of institutions that can negotiate differences and generate a sense of shared societal goals.  Particular attention to social inclusion and social cohesion is important in societies at risk of, or having experienced, civic and/or ethnic conflict, either of which can entirely destroy the benefits of economic growth.