This paper provides lessons for industrial relations reform efforts in the new nations emerging from the former Soviet Union and Eastern Bloc. Our purpose is to identify the basic industrial-relations practices that enable the advanced industrial countries to compete in world markets. The paper does not provide a detailed descriptive account of the existing industrial-relations institutions in the formerly communist countries, nor does it assess the likely short-run consequences of the economic restructuring under way across the new nations. Rather, our focus is on the experiences in the advanced economies and the lessons those experiences contain regarding successful industrial-relations practice.