The essays in this volume, first published in 2001, examine fiscal policy-making and providing for social welfare in post-socialist countries.Countries of the former Soviet Union and Eastern Europe are entering the second decade of political transformation and economic reform. The new policy challenges center on the nature of the social contract between citizens and their governments. The essays in this volume focus on two interrelated issues: the making of fiscal policy and the provision of citizens' welfare, particularly regarding pensions and health care. The essays emphasize that there is no single model of a market economy; rather, governments and publics face a range of options for restructuring the socialist welfare state.Countries of the former Soviet Union and Eastern Europe are entering the second decade of political transformation and economic reform. The new policy challenges center on the nature of the social contract between citizens and their governments. The essays in this volume focus on two interrelated issues: the making of fiscal policy and the provision of citizens' welfare, particularly regarding pensions and health care. The essays emphasize that there is no single model of a market economy; rather, governments and publics face a range of options for restructuring the socialist welfare state.Countries of the former Soviet Union and Eastern Europe are entering the second decade of political transformation and economic reform. The new policy challenges center on the nature of the social contract between citizens and their governments. The essays in this volume focus on two interrelated issues: the making of fiscal policy and the provision of citizens' welfare, particularly regarding pensions and health care. The essays emphasize that there is no single model of a market economy; rather, governments and publics face a range of options for restructuring the socialist welfare state.Preface J?nos Kornai; Introduction Stephan Haggard and Robert R. KalÓH