Eastern Europe’s Post-Transitional Integration into Western Economic Relations through Social Labour Recognition

Abstract

Hypothesizing that fostering trade facilitates synergic growth and that convergence can overwhelm initial development differences, eastern nation states abandoned their production modes to become part of the European economic area. Accordingly, this chapter furnishes an answer to the question of whether or not the transition rendered an asset or a liability, concerning newly integrated states. Consequently, the transition process is investigated as the principal engine behind the unequal labour exchange, whereas its success is weighted against the extent of cross-country differences regarding social labour recognition. The study reveals the transition countries have experienced a radical capital intensity increase and suffered from below-equilibrium prices obtained at the commodity markets. It appears that the transition countries are homogenizing and catching-up with Western countries. However, this process is far from over and is hindered by the persisting unequal relations, enabling the west to exploit international inequalities and exercise economic dominance over the east.