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What factors determine the success of economic transition, development and growth? This book examines the contrast between the two diametrically different cases of the East German shock therapy in the early 1990s and Hungary's gradualism that had begun in the 1960s prior to the collapse of the communist regime. Methodologically, the analysis uses the experience from the East German case of full and immediate integration to generate a set of generalisable necessary conditions of catch-up development which are subsequently reflected against the most recent developments in Hungary. The assumption that economic development in post-socialist economies could best be promoted by their full and immediate integration proved to be misconceived in the East German case, and thereby highlights the danger of premature integration for Hungary. This authoritative comparison between two paradigmatic experiences of transition and true policy recommendations offered make this book of interest to all scholars and policy-makers interested in the economics of transition.