Abstract
It is widely argued that the collapse of communism in Eastern Europe and the Soviet Union also marks the end of the third way, as an alternative to both capitalism and communism. S.M. Lipset and Ralf Dahrendorf, among others, have proclaimed that there is no third way, that 1989 marks the victory of liberalism and capitalism.1 Adam Przeworski notes that the third in any case has to be renamed the second way with the collapse of communism, and that if it develops in Central and Eastern Europe, it will be mainly by default based on the inherent difficulties of developing a capitalist free market economy in poor countries. He concludes:
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