THE ESCAPE FROM SOVIET MARXISM TO FREE MARKETS
Vilnius, Lithuania. The capital of this Baltic state seems very much like a normal European city these days, as do those of other Eastern and Central European countries.
In retrospect, this simple fact is remarkable, because a mere quarter-century ago Estonia, Latvia and Lithuania were part of the Soviet Union, while Poland, the current Czech Republic and Slovakia, as well as Hungary, Romania and Bulgaria were still communist states controlled by the Soviets. Back in the mid-1980s, most people, including the establishment in the West, thought that these countries would remain communist dictatorships for the foreseeable future.
A few visionaries, such as Ronald Reagan and Margaret Thatcher, thought differently and were widely ridiculed. Others who also thought that the Soviet empire could be rolled back were mocked.
Once the communist yoke had been thrown off, few thought that the newly independent countries could evolve into functioning free-market democracies in a short period of time without major strife and loss of life. Yet it happened, and now the citizens of these countries enjoy both freedom and a much higher standard of living.
As can be seen in the chart below, real per-capita gross domestic product (GDP) has risen sharply in all of the Eastern and Central European countries over the past two decades.