Rivers in Central and Eastern Europe are highly polluted as a result of over-industrialization, resource intensive production processes and lax environmental enforcement. At the beginning of the economic transition, great optimism abounded within the region that environmental problems would be dealt with early and that the West would offer significant financial help. It is now clear that achieving significant improvement in environmental quality will require many years and will be largely financed from internal resources. Moreover, the region's goal of joining the European Union dominates the environmental policy agenda. Drawing upon the results of a three year study conducted at the International Institute for Applied Systems Analysis (IIASA), cost-effective strategies for eventually achieving this goal are identified. The paper discusses recommendations for implementing these strategies within the evolving political and economic environment of Central and Eastern Europe.

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