The growth of Eastern European countries: Why investing is a good idea
Ever since the Iron curtain fell and the eastern European countries re-gained independence, these former communist countries have become a part of the European open market. Almost all countries throughout history that have been controlled by communists are usually met with a harsh and rocky beginning. As the complete reconstruction of society and all that comes with it does not set itself without problems. However, despite this many of the former communist countries have thrived over the years and seem to be on the way to become powerful economic powerhouses of their own.
While all have their own story and reasons behind their success, the eastern European market is still an untapped market with cheap labor, cheap sourcing and highly educated individuals.
With strong economic reforms and a heavy egalitarian focus, the Polish market have been surprisingly steady since the breakout from Soviet influence.
Although they already had a strong economic policy after 1989, they adopted a deep economic reform in 1991 and have been on a trajectory upward in its economy ever since (impressively, Poland was the only country to completely avoid the 2008 crisis).
Another reason for their success is their abolishment of oligarchs. True to their egalitarian ideals, no one have been given oligarch status since its founding and all billionaires in Poland today are market made.
In addition, the egalitarian view of investment and support to all sectors, have made Poland a true swiss army knife when it comes to potential, with a strong (and cheap) education system, making it a hotspot for many Europeans who wants to study medicine.
Hungary is unique in many ways. Despite the rocky start of the country attributed to public unrest regarding unfair property sale conditions and later the economic crisis 2008, Hungary have remained a strong up and coming economy.
By cementing itself as one of the strongest export focused countries in Europe, they have attracted heavy foreign investment that seem to continue for many years to come.
Hungary are also unique in their education regarding IT.
As many IT companies have invested heavily into Hungary and started offices around Budapest, the universities have shown to host a talent group of future IT entrepreneurs and employees.
Lithuania is a curious case of how EU investments can prove to be effective.
Considered one of the easiest countries in the world to do business within, over the years many investors (majority from Sweden) have used Lithuania’s untapped market for their own gain.
Unlike most countries’ from the East bloc, the economic crisis proved to be not as severe for Lithuania, letting them bounce back effortlessly after just half a year.
Since then they have proven to be a strong place of growth and secure investment, with it also hosting many educated peers despite their size.
As their industry is heavily service focused, it shouldn’t be to surprising that they are a reactive market-based economy, that have an easy time cooperating with other countries.
As the iron curtain fell, as mentioned before, many eastern European countries suffered from the difficulties of rebuilding society and the free market. One country however, adapted to the free market faster than any other. That country is the Czech Republic.
But by looking at its history, this might not be that much of a surprise.
As when they were ruled by the Soviet, the Czech Republic in conjunction with Slovakia were the most prosperous country in all the eastern bloc.
With a strong industrial sector, Czech Republic had much of the infrastructure already in place when it regained it’s independence, leading it to be considered one of the most successful Eastern Bloc countries at the time. With a strong focus on heavy steel production and machine manufacturing, they also enjoy high standards of education.
As most other Eastern European countries had to expand these sectors, the Czech Republic already possessed a strong education base for their citizen after the fall of Soviet, a privilege they still enjoy to this day.