“The fundamental growth model for the region remains intact. However, the crisis has highlighted weaknesses. There are lessons to be learnt. It is clear that the way to address these pitfalls [uncovered in the economic models by the crisis] is to extend the transition agenda, not to replace it,” said Erik Berglof, Chief Economist of EBRD.
The 30 emerging economies in Central and Eastern Europe and Central Asia, where EBRD has developed investment programs, are facing the most severe recession after abandoning the socialist model, of a state-controlled market. Of all emerging regions of the world economy, Central and Eastern Europe is most affected by the current global recession.
