Countries of the former Soviet Union and Eastern Europe are entering the second decade of political transformation and economic reform. The new policy challenges center on the nature of the social contract between citizens and their governments. The essays in this volume focus on two interrelated issues: the making of fiscal policy and the provision of citizens' welfare, particularly regarding pensions and health care. The essays emphasize that there is no single model of a market economy; rather, governments and publics face a range of options for restructuring the socialist welfare state.