The year 1991 witnessed events of historic importance for the world economy. World output declined for the first time since the World War. Dramatic political events brought about the dissolution of the Soviet Union and catapulted the economies of the successor republics into transition to the market system. The Persian Gulf war left deep marks on a number of economies. Many countries continued to stagnate. The World Economic Survey 1992, examines these and related developments and major issues in the world economy.