Originally from Journal of Damages in International Arbitration

Preview Page

I.  ABSTRACT

The early stage transition during the 1990’s in the former socialist countries in Central and Eastern Europe (CEEs) has had a major negative impact on the economies of those countries, which witnessed the aggressive experience of an almost sudden destructuring of the previous manufacturing and supply links through quick and massive privatization of enterprises and liberalization of trade, prices, etc. The major distorsion and dismantling of the industrial structure and of trade as well as of the underlying infrastructure (administrative, legal, financial, fiscal, etc.) have led to a most severe decline of output, along with an extremely rapid increase of correlated critical phenomena, such as unemployment and inflation.

A few pertinent questions do arise naturally, and are highlighted by the article, just in a rethoric manner, since true and effective answers could possibly be found only if, and when, international (arbitral) institutions might consent to join efforts for further more in-depth quest. On one hand, these questions refer to the correct evaluation of the range, scale, and amount of the consequent economic and social damages generated in the CEEs by the early stage transition process, and, on the other hand, they address the ways in which these damages could possibly be compensated. From the perspective of large scale damages compensation, these questions do represent indeed most demanding and challenging issues.  Finally, a suggestion is made concerning the possible setting-up of international arbitration tribunals to deal with both potential compensation and its evaluation.