Globalisation and Equity Issues in Post-socialist Transition Economies

Equity issues in policymaking are difficult to resolve because they are linked not only to the economic situation but also to social constraints and political conflicts within a country. This is even more true in the case of post-socialist economies during their transition to a market system in the era of globalisation. The historical and irreversible process of liberalisation and integration of capital, goods and services, and labour markets into one world market, as well as the gradual construction of new institutions and the process of privatisation cause a significant shift in the income pattern of post-socialist emerging markets. Contrary to expectations, inequality increases affecting the standard of living and long-term growth. While globalisation contributes to the long-term acceleration of economic growth and offers a chance for many countries and regions to catch up with more advanced economies, it results in growing inequality both between the countries and within them. On average, the standard of living increases, but so does the gap between the rich and the poor. Therefore, equality issues should always be of concern to policymakers, especially in the early years of the change of regime in post-socialist transition economies