The basic policy changes towards increased market orientation and private sector development in recent years have been necessitated by global economic developments. In the newly independent states (NIS) and the former socialist economies of Eastern and Central Europe, a major shift to market orientation and private-sector development through liberal policies was essential. This became equally necessary for developing countries, because of major global trends towards competitiveness and efficiency. Rapid and revolutionary technological developments in communications and production processes have resulted in globalization of markets and communications, and increased internationalization of production. The Uruguay Round Agreements are expected to result in major liberalization of global trade. At the same time, the emergence of important trading blocks, such as the European Union and NAFTA will inevitably have substantial impact. There is likely to be more intense competition for various goods and services, and competitive technological processes and improved quality standards will need to be ensured, besides compliance with environmental standards. It will be increasingly necessary for developing countries and for transition economies to adapt their industrial structure and their production and marketing mechanisms in order to participate in the mainstream of international trade and investments.