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The aim of this paper is to determine the effects of the transition on the standard of living and social inequality in Poland, Hungary, Slovenia and Russia. In order to establish a market economy, these countries started economic and systemic reforms at the end of the 1980s. The goal of the transition was the establishment of a market economy and macroeconomic stability, and to ensure a higher standard of living because (with the exception of Slovenia) the GDP per capita in these countries was significantly lower than the average of the EU countries. Although they applied different approaches in the implementation of the transition, it is characteristic for all countries that in the first phase of the transition (until the mid-1990s), they had the problem of recession and hyperinflation, which, together with the inadequate privatization process, was reflected in the decline of the standard of living (in Slovenia and Russia) and the growth of inequality. Only after establishing institutional reforms and attracting FDI, in the second transition phase (until the end of the 1990s), macroeconomic stability was established, which contributed to the growth of living standards (except for Russia) and the reduction of inequality (except in Poland).

In the 1980s, the neoliberal concept was imposed as an economic-political doctrine based on the claim that the free market efficiently allocated resources and ensured world prosperity and peace. The aim of this paper is to try to provide one of the possible interpretations of neoliberal economy on the basis of the analysis of the development of economic thought. The foundations of liberal economy are defined by classical political economy, and the contribution was made by the neoclassical school of economics, but also other directions in the development of economic thought. Although proponents of the neoliberal economy have advocated liberalization and privatization to improve the general well-being of society, the global economic crisis and the COVID-19 crisis have shown the misconceptions and contradictions of neoliberal results that are not only ineffective in times of crisis but also contribute to global inequality.