Chapter 4 paragraph 4: The development of Eastern Europe

• Aardrijkskunde
• Middelbare school
• havo
• Leerjaar 3

At the end of this lesson

you can explain the difference in development in Eastern and Western Europe

The Iron Curtain

Western Europe: capitalist

Capitalist

• Free market economy
• People could decide for themselves what they wanted to produce, mind their own businesses. 
• You could get rich here (but there were also big differences between the rich and the poor)

Eastern Europe: communist

Communist

• Command economy
• Government decided what factories could make
• Disadvantages: does not produce what people want + poor quality
• Generated less wealth, BUT basic needs where provided for (everyone got the same)

Curtain fell in 1989

• Many countries in Eastern Europe joined the European Union
• Companies in Western Europe invested a lot of money in Eastern Europe (good location factors for factories)
• Low-wage economy,  skilled workers (because of education in the communist period). Not only the factories, but also the development of for example cars was moved to Eastern Europe. 
• This gave a boost to the economy (because these factories need supplies also -> more work)

Differences rural-urban

• The cities are blooming, wealthy and have economies of agglomeration
• The rural areas are poor and undeveloped

To work

• Read paragraph 4.4
• Make assignments 1 -14