However, it was realized during the early 1990's that the transition to market economies and democracies was laborious thus causing declines in production and inflation in the region. During the latter half of the decade however, significant changes were visible in countries like the Czech Republic and Slovenia while other states were making steady progress thus providing hope for improvements in the economic and political arena.
During the same period, China underwent several transformations, which included opening up the economy to the west and increasing foreign investment. This helped the economy develop and caused standards of living to improve significantly. The side effects of western influences in the market caused society to seek changes in the political system leading to the cultural- revolution. Even though the desire of the Chinese citizens to end the Communist regime and establish a democracy resulted in the government returning to its conservative roots, the revolution was a wake up call to the west to act against the oppressive acts of the Chinese regime.
Meanwhile, countries in Asia, especially the four tigers were industrializing rapidly as other third world countries like Bangladesh continued to face economic crises. Countries in Africa and Latin America chose to end many of their planned socialism projects and focused on private enterprises. The West's focus on market economies and privatization ultimately influenced other third world countries to abandon their communist and socialist systems and adopt new methods. .
Another remarkable characteristic of this decade was the growing influence of multinational corporations, which was highly influenced by the dynamic trends of globalization and interdependence. Economies from all around the world were now working together to establish new systems of trade and revenue thus causing immense alterations in the economic systems of the involved countries.
