Why Eastern Europe Is Less Developed Than Western?

When discussing the economic development of Europe, it is commonly recognized that there is a divide between Eastern and Western Europe. The reasons why Eastern Europe is less developed than Western are multifaceted and have their roots in historical, political, and economic factors.

Historical Factors

One of the main historical factors that contributed to the economic divide between Eastern and Western Europe is the Soviet Union’s influence on the Eastern Bloc countries during the Cold War. The Soviet Union’s centralized economic policies left these countries with a legacy of inefficiency and underinvestment. Additionally, the region was subjected to communist policies that limited private enterprise and stifled economic growth.

Political Factors

The political upheaval that characterized Eastern Europe after the fall of the Soviet Union also contributed to its economic struggles. The transition from communism to democracy was difficult and often chaotic, leading to economic instability and uncertainty. Corruption and political instability also created a challenging business environment, which made foreign investment less attractive. That’s another reason why Eastern Europe is less developed than Western countries.

Eastern Europe

Economic Factors

Finally, economic factors played a significant role in the development divide between Eastern and Western Europe. Western Europe has historically had a more diverse and advanced economy, while Eastern Europe was mainly focused on heavy industry and agriculture during the communist period. This specialization left the region vulnerable to economic shocks, and it struggled to adapt to a more globalized and service-based economy.


The economic development divide between Eastern and Western Europe is a complex issue with roots in historical, political, and economic factors. While the situation is improving, there is still much work to be done to ensure that all of Europe can benefit from the economic growth and prosperity that the continent has to offer.

Most Developed Countries in Eastern Europe

  • Estonia. With a population of 1.3 million, Estonia has emerged as the most developed country in Eastern Europe. Its economy is characterized by a highly-skilled labor force, openness to foreign investment, and a strong tech sector.
  • Czech Republic. The Czech Republic has a highly diversified economy, with a focus on manufacturing, services, and innovation. Its strategic location in Central Europe has made it an attractive destination for foreign investors.
  • Poland. One of the largest countries in Eastern Europe, with a population of over 38 million. The country has undergone a rapid transformation since the fall of communism, with significant improvements in infrastructure, education, and healthcare.

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