3 
abolition of subsidies on food etc should be delayed as long as 
possible except in the case of energy. 
There is one factor,however, which is absolutely crucial when it 
comes to choose between the two scenarios: The infrastructure.The 
socialist countries have a dilapidated and run down infrastucture 
as well as a heavily damaged environment. To rebuild and modernise 
this infrastructure and to restore the environment to health must, 
for more than one reason, have the highest priority in the 
economic policies of these countries. The first reason is that it 
is very difficult to attract investment from the outside under the 
existing conditions. Indeed,the most essential things are amiss: 
Telecommmunications, railways and other transport, power 
supply.The computer networks which have become commonplace in the 
West are absent and money is carried by hand from one town to the 
other or by courrier abroad. The shortcomings of the distribution 
system and of repair services and the dilapidation of houses also 
are questions of infrastructure in the wider sense. Experience of 
regional policy in our parts of the world has shown that 
management shuns locations which are unsatisfactory with respect 
to infrastructure and environment. It is an open question whether 
enthusiasm and optimism of the concerns outweighs these handicaps. 
There is no doubt that it will take many years to restore 
infrastructure and environment.Politicians who pretend to 
disregard this are evidently in possession of Alladins wonderful 
lamp. 
A second reason for the urgency of building up the infrastructure 
is that this offers the best hope for counteracting the 
unemployment which threatens to arise from the upheaval in 
industry. Some time will be needed,though,before actual work can 
begin, because it would be crazy to approach this task without