This chapter considers the role of international agencies in fostering and supporting particular reform projects. The principal financial institutions are the International Monetary Fund (IMF) and the World Bank, and it is these institutions which form the core of the analysis in this chapter. The functions of this chapter are fivefold: to consider the role of international financial institutions in Eastern Europe; to analyse the transference of the neo-liberal model and the mechanisms by which it is imposed; to investigate the strategic choices of governments and the role of international financial institutions as shadow partner; to look at the economic alternatives to neo-liberalism; and to examine the implication for labour relations.
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