2. Free market policies: Western European countries largely adopted free market policies, allowing for private ownership, entrepreneurship, and competition. This encouraged economic growth and innovation. In contrast, Eastern European countries adopted centrally planned economies, which stifled economic development.
3. Access to Western markets: Western European countries had better access to global markets and could tap into international trade, benefiting from increased demand for their goods and services. Eastern European countries had limited access to these markets due to trade restrictions imposed by the Soviet Union.
4. Technological advancements: Western Europe led the way in technological advancements during this period, particularly in industries such as manufacturing, transportation, and communication. These advancements increased productivity and economic efficiency. Eastern European countries lagged behind in technology adoption.
5. Human capital development: Western European countries invested heavily in education and skill development, resulting in a highly skilled workforce. This contributed to higher productivity and competitiveness in the global market. Eastern European countries faced challenges in education and human capital development.
6. Political stability: Western European countries enjoyed relative political stability, which provided a conducive environment for economic growth. In contrast, Eastern European countries experienced political instability, with changes in regimes and policies that undermined long-term economic planning.
These factors combined to result in faster economic growth in Western Europe compared to Eastern Europe after World War 2. The subsequent integration of Western European countries through the European Economic Community (EEC) further accelerated economic growth and strengthened ties among European nations.