Why have the neoliberal economic programmes aimed at transforming Eastern Europe to a market economy and democracy since 1989, not only experienced unanticipated difficulties but more importantly failed to achieve their expected progress? Dr Ladislav Rusmich and Dr Stephen M. Sachs offer a comprehensive and critical study that examines this specific question and concludes that the cultural and institutional conditions created by communism must be overcome in order to critique previous policies and propose a better direction. Drawing on the experiences of Dr Rusmich, who for many years was an important participant in the communist economic apparatus, and who is also among the leaders attempting to reform it during the Prague Spring of 1968, this work corrects common misconceptions among mainstream economists about the workings of communist economies. This is a first-hand expert account providing useful economic lessons applicable to the first world, concerning such topics as the role of power in the economy, monopoly, bureaucracy, market culture and ethics to name but a few. INDICE A costly experience What was it that failed and why? The case of Czechoslovakia Where it has ended up concerning the economy The world wide lessons from the failure The sources of knowledge The behavior of economic subjects The market and ownership Economy and power Market culture and ethics The prospects for development of the economic system The economic transformation of European postcommunist countries The legacy of communism and the beginning of its economic transformation The course and problems of the transformation process What to do?.