What major shift occurred in the global economy after the fall of the Berlin Wall?

The transition from communism to capitalism in Eastern Europe represents a significant transformation in the global economy following the fall of the Berlin Wall in 1989. This event symbolized the end of the Cold War and marked the beginning of profound political and economic changes across Eastern and Central Europe. Countries such as Poland, Hungary, and the former Czechoslovakia moved away from state-controlled economies toward market-oriented reforms, embracing private ownership and foreign investment. This shift not only changed the economic landscape in these countries but also influenced global trade patterns and economic policies, promoting capitalism as a dominant ideology worldwide.

The fall of the Berlin Wall energized movements for reform across Eastern Europe, leading to the dismantling of the Soviet Union and the liberalization of former communist states. As these countries transitioned, they began integrating more fully into the global economy, which laid the groundwork for future collaborations and alignments, such as their eventual inclusion in the European Union. This marked a critical phase in the evolution of the modern world economy, wherein the principles of free-market capitalism gained widespread acceptance and encouraged greater economic interdependence among nations.