I. The situation

A. Eastern Europe wanted to embrace capitalism and free elections

B. But, how do you go from communism to capitalism?

C. Eastern Europe might have desired capitalism even more so than welfare-minded western nations

D. West opposed unemployment/downsizing, reduction of unions, reductions of social programs

E. Francis Fukuyama – “end of history”

F. End of communism spawns independence/nationalism

II. Russia

A. Yeltsin’s “shock therapy”/ ruble voucher

B. Ineffective and leads to rapid inflation, decline in production

C. New capitalistic class emerges

D. New class in abject poverty also emerges

E. Most struggle in the middle

F. Yeltsin wrangles with communist holdovers in parliament who feed off economic falterings

G. Yeltsin wins 58%; calls army to blast holdovers

H. Moral of the story – free elections and determination to move to capitalism

III. Eastern Europe

A. Poland, Czech, Hungary – do relatively well largely due to western traditions they’d laid early

B. Slovakia, Bulgaria, and Romania – lag far behind with no western traditions

IV. Yugoslavia

A. A. Serb President Slobodan Milosovic’s vision of “greater Serbia” starts civil war

B. Ethnic mosaic of Yugoslavia erupts in ethnic warfare for independence

C. International society/NATO/UN eventually turns against Serbia as the “bad guy” and forces Serbia to compliance

D. Bottom line – Yugoslavia Balkanizes into puzzle pieces loosely arranged around ethnic lines