ESOURCE GUIDE TO DOING BUSINESS IN
CENTRAL AND EASTERN EUROPE
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Source:
U.S. Department of Commerce
+1 (202) 482-1986

United States Department of State, Bureau of Public Affairs

For businesses considering market opportunities in Central and Eastern Europe (CEE), this revised resource guide from the Department of State provides an array of helpful information. Subjects covered include a review of U.S. Government and multilateral initiatives; a section on where to turn for help, which includes lists of U.S. and Foregin Commercial Service District Offices in the United States and abroad, and CEE Trade Development offices in the United States; and a section on private-sector assistance.

The guide also provides country reports on all of the CEE countries, including several of the former Yugoslavia, and a final section offers publications and electronic dissemination services by U.S.

Government agencies and private-sector organizations.

This resource guide is designed to assist U.S. businesses seeking market opportunities in Central and Eastern Europe. It was prepared by Juanita Adams and Jim Pinkelman of the Bureau of Public Affairs in cooperation with the U.S. Department of Commerce and the U.S. Agency for International Development.

The Central and East European (CEE) governments have made significant progress in their transition from communism to democracy; however, they continue to face challenges in developing private sectors. American expertise, products, and technology can help those CEE countries with pressing economic problems and, at the same time, create business opportunities and jobs for the United States.

The CEE countries are pursuing political and economic reforms, expanding trade and investment ties with the West, and diversifying their sources of imports. In the last four years, trade with the West and foreign investment have increased dramatically. As these governments promote private enterprise, the number of local agents, consultants, and other service providers has grown.

Experienced Western trading and consulting companies already established in CEE countries can help U.S. companies enter the regional market. Other businesses use joint ventures and direct investment to market their products and services. Other ways to approach the market include participating in trade fairs and licensing arrangements, advertising, hiring an agent, or forming partnerships with experienced West European firms.

To promote economic growth and open markets in the CEE region, the U.S. Government frequently deals directly with private and non-governmental sectors in addition to host government institutions. The United States provides technical assistance to help train bankers and managers; draft tax, labor, and commercial laws that will permit competition; create financial intermediaries to assist in the privatization process; and remove government regulation which impedes economic development.

The United States emphasizes the transitional nature of assistance to CEE but recognizes that certain countries, such as Albania, may require long-term help in institution-building. Funding in fiscal year (FY) 1993 increased 12% from FY 1992, a total of $400 million for 10 countries.

-- As in the past, democratic initiatives receive about 7.5% of assistance, 17.5% of quality-of-life activities, and 75% of economic restructuring.

-- Poland remains the largest single recipient of assistance, consistent with its size and special relationship with the United States.

-- Enterprise funds quickly and successfully meet the needs of the new private sectors and receive the largest segment of the budget. As evidenced in Poland and Hungary, such funds attract other international donor/private sector support.

-- The United States also supports development of private agriculture and agribusiness.

-- To increase efforts to privatize state-owned enterprises, major programs are underway to support privatization of industry, housing, energy, health, banking, and other key sectors.

Countries of this region wish to integrate their economies with those of the West. Central and Eastern Europe can be a profitable gateway to the Europe of tomorrow for American businesses interested in venturing into the CEE market. In the long run, the impact of U.S. private sector capital, goods, services, and expertise will be much greater on the development of free markets abroad than any assistance government can offer.

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