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Foreword -- Abstract -- Acknowledgments -- Abbreviations and acronyms -- Executive summary -- 1. Overview of progress in economic transition -- 2. Air pollution -- 3. Water pollution -- 4. The health impacts and costs of environmental damage -- Annexes -- Notes -- References -- Boxes -- Figures -- Tables

The transition to a market economy is expected to lead to environmental as well as economic improvement. In practice, realization of the expected gains may come slowly, especially for countries where economic reform and growth have lagged. This technical paper reviews progress in environmental trends since transition began. It looks at air and water pollution and health indicators in the region over time, in comparison with world-wide trends and in light of the environmental issues identified in the Environmental Action Programme for Central and Eastern Europe. As this study emphasizes, economic reform and commitment to introducing environmental regulations and programs are vital for reaching lasting environmental improvements. The report points to the solid progress achieved in the advanced reform economies and to the less encouraging trends in slower-reforming countries. In the latter group, pressures on the environment decreased somewhat during transition only as a consequence of declining economic activity, while persistent problems remained in environmental " hot spots " around high-polluting industrial centers. The report continues and builds on the World Bank ' s work in analyzing the environmental effects of transition, restructuring, and privatization with a view to identifying priority areas for investment and policy initiatives.