Liberalization Process Research Articles

Political Reform as Regime Survival Strategy in the Hashemite Kingdom of Jordan After the Arab Uprisings

Jordan has recently celebrated its centennial in a volatile region. The Jordanian regime has an experience in dealing with mass protests; however, the recent decade with a surmounting socio-economic challenge aggravated by the mass influx of Syrian refugees has pushed the Kingdom towards a “boiling point.” The narrative of political reform has been dominated the daily political life of the monarchy; however, citizens have disillusioned with the pace of political liberalization in the Kingdom. Constitutional amendments mainly empowered the King authority with new rights, and the new election law adopted in 2016 failed to meet with the demands of the protesters. Jordan is not a country in political transition as the regime has remained intact from a genuine structural reform aimed at reaching a constitutional democracy. The introduction of economic liberalization process as well as the austerity measures dictated by the International Monetary Fund has led to an eroding social base of the monarchy. The rise of the new businessmen elite and the growing socio-economic problems in the tribal South made the society restructured in a way, which provoked more protest waves. Until now Jordan has managed to tackle with all difficulties; however, the pandemic and the shifting regional order have been aggravating the situation. The reforms mainly serve as a regime survival strategy; however, the ones launched in 2021 show that the monarch understands the situation. It has yet to be seen whether the new reforms will last and satisfy the citizens.

A Bridge Too Far: Africa’s Food Security and the WTO Agreement on Agriculture

Food and agriculture were largely treated as exceptions from the GATT disciplines. The GATT Uruguay Round Agreement on Agriculture (AoA) initiated a long-term process of trade liberalisation in agriculture. Food security is among the objectives of the AoA. Trade liberalisation in agriculture, the removal of protectionism, and tariffs in agricultural trade are envisioned as food security enhancing. However, although African countries embraced the WTO AoA, they have failed to liberalise their agricultural trade in line with the disciplines of the AoA. African countries have missed out on the benefits of agricultural liberalisation, among them being food security. As a result, Africa’s agricultural trade is anaemic and, coupled with her low agricultural productivity, Africa is plagued by hunger.

A sectoral analysis of a developing country's exports in the context of trade integration: Evidence from Colombia

The research delves into the effectiveness of Colombia's trade liberalisation process in boosting its exports at the industrial level. Based on an empirical workhorse approach to international trade, the gravity model, we evaluate the effect of trade openness on Colombian exports at the industrial level following the SITC4 categorisation. For this purpose, panel data on Colombian exports to all its trading partners between 2007 and 2020 were used. The results establish that Colombia's trade openness has boosted the exports of most of its industries, except for exports of the mineral fuels, lubricants and related materials group, which is a group of goods that represents the country's largest exports. Furthermore, the research also confirms the prominent impact of labour productivity in boosting Colombian exports of most product groups. Consequently, Colombian policymakers should support a re-composition of the Colombian export basket in order to take proper advantage of trade integration formulas, within a global energy transition framework.

The Role of EU Transport Market Liberalization in Shaping Directions of Rail Energy Consumption Rationalization in Relation to the Export of Goods: The Case of Poland

This article discusses the impact of rail market liberalization on the energy intensity of rail in relation to the export of goods, as well as the identification of multidimensional cause-and-effect relationships between rail energy intensity and the importing country’s economic condition, transport performance, and transport distance. Three research questions were formulated: (1) Does the liberalization of the EU transport market and the implementation of a sustainable transport policy contribute to minimizing the energy consumption of rail transport? (2) Does the pursuit of economic growth allow for reducing the energy intensity of goods exported by rail transport in global trade? (3) Is there a justified paradigm for shifting long-distance freight transport from roads to rail? This study concerned 21 directions of the export of goods transported by rail from Poland to partner countries (worldwide) in 2010–2020. A panel model of rail transport energy consumption with random effects was constructed. As a result of rail market liberalization, the export of goods transported by rail across great distances occurs without harming economic development and leads to a reduction in energy intensity. On this basis, key strategies were formulated to promote rail transport in reducing the energy intensity of the transport sector. The authors filled the research gap by identifying the relationship between the energy intensity of exports of goods by rail transport in value terms, depending on the European transport market’s liberalization process, the importing countries’ economic situation, transport volume, and distance. The presented approach is innovative and can be adapted to the analysis of other modes of transport, including road transport, and other countries (and their structure and export directions).

Indian Economy: Performance, Policies, Politics, and Prospects and Challenges

The paper begins with a bird's‐eye view of growth, showing that the Indian economy grew slowly during 1951–1988, faster during 1988–2003, and the fastest during 2003–2023. India's first prime minister, Jawaharlal Nehru, sought to establish a self‐sufficient and socialist economy. Accordingly, he focused upfront on heavy industries, with the public sector leading the way. Employment and production of consumer goods were left to tiny household enterprises. The result was a highly controlled formal sector with nearly all capital and a swath of the informal sector with nearly all labor. Slow growth was the inevitable outcome. Some ad hoc liberalization began in the 1980s and became more systematic in the 1990s. However, socialism remained entrenched, resulting in a stop‐go process of liberalization. With reforms accumulating, the paper predicts a bright future, though the migration of the vast workforce from agriculture to industry and services is likely to remain a challenge.

The Impact of China’s Capital Account Liberalization on the Direction of Cross-border Capital Flows

Objective: This article aims to investigate the impact of China’s capital account openness (OPEN) on cross-border capital flows (CCF). Methods: The research utilizes the ARDL-ECM model for empirical analysis. It begins by summarizing existing literature on the topic and then proceeds to analyze the data spanning from 1998 to 2023. The study explores the long-term cointegration relationship between OPEN and CCF. Additionally, it investigates the correlation between the direction of openness and its effect on CCF. Notably, the research introduces the concept of the volatility of OPEN as an explanatory variable to understand its impact on various types of capital flows. Results: The findings reveal a significant long-term cointegration relationship between OPEN and CCF. This relationship is significantly influenced by the direction of openness. Moreover, the study identifies that the volatility of OPEN notably affects different categories of capital flows. Furthermore, it observes that structural changes in net foreign securities investment are comparatively higher than those in net foreign direct investment. Conclusion: This study underscores several recommendations for the ongoing process of capital account liberalization in China. Firstly, adjust OPEN flexibly to promote or restrict specific types of capital flows. Adopt elastic capital control measures for different types of capital flows to balance the stability of domestic capital markets and the activity of international capital flows. Secondly, careful adjust capital outflow openness to maintain economic environmental stability and prevent capital flight. Lastly, encourage long-term investment, particularly in the real economy and infrastructure sectors, and provide incentives for investors committed to long-term investment.

Anything is possible: Word of Life and utopian thinking during the revolutionary processes in Estonia, 1987–1991

ABSTRACT The late 1980s was a chaotic period in Soviet Estonia. The liberalization process of the Soviet Union brought about a sense of freedom and the possibility that Estonian people would finally have a say in the future of Estonia. This unexpected feeling of freedom formed the basis for various attempts to narrate a better society, including religious visions of a new Estonia. Several of the new religious movements that emerged during this period developed their own ideas about the future of Estonia, with some incorporating utopian perspectives. Although these movements had distinct views on the identity and independence of Estonia, their ideas have not yet been thoroughly researched. The aim of this article is to show how one of the movements, Word of Life, addressed these times of change, and to elaborate on what kind of utopias about Estonia are construed in the discourses.

Compressed development, decompression, and diverging convergence in South Korea: which varieties of capitalism in contemporary Korea?

South Korea has achieved compressed growth and convergence of its income level to that of typical advanced economies. This paper adopts a narrow definition of compressed development as a form of late development that lacks political democracy and open markets, and then defines decompression as the process of democratization and economic liberalization. This paper applies this framework of “compressed development, decompression, and diverging convergence” to analyze the dynamics of Korean capitalism since the 1980s after the death of the modernizer-dictator, President Park. First, the middle class emerged in Korea in the 1980s as a result of compressed growth since the 1960s and served as a key intermediary in linking economic growth to democratization. The process of political decompression, or democratization, was peaceful because it was demanded and led not by the working class but by the middle class. Second, an ill-managed first wave of economic decompression (liberalization) led to a financial crisis, and then, the post-crisis reforms (the second, more radical decompression) imposed by the IMF planted the institutional seeds for convergence with Anglo-American capitalism. Third, Korea is experiencing the end of the East Asian miracle, as evidenced by slowing growth and rising inequality, and is undergoing a multifaceted convergence toward different varieties of capitalism. In terms of life expectancy and crime rates, Korea joins Japan, Italy, and Spain in the “safe capitalism” group, while it is an extreme outlier in terms of its large gender wage gap and long working hours. In terms of unemployment and long-term employment rates, Korea is closer to the Anglo-American model, but closer to Europe in terms of the degree of active (or passive) labor market policies and legal protection against layoffs. Korea seems to be realizing “divergent convergence” as it remains distinct from any particular form of Western capitalism.

Financial Liberalization and Banking Risks in the Waemu Zone: Do Fintechs Matter?

This study aims to examine the role of fintech development in the relationship between financial liberalization and banking risks in WAEMU countries. To do this, we used macroeconomic data from WAEMU countries, except of Guinea Bissau, due to lack of data, over the period 2011-2021. Methodologically, we use the PCSE (Panel-Corrected Standard Error) method of Beck and Katz (1995). The results revealed that fintechs amplify the banking risk reduction effect of financial liberalization. In terms of economic policy implications, the study suggests that the authorities should step up the process of financial liberalization and pay particular attention to adequate regulation of fintechs.

Assertive China After the Rise of Xi Jinping

In terms of China's internationalisation and economic policy, the Chinese economic miracle, which supports visions of China as a global hegemon, would correspond to a coherent long-term grand strategy. First, we analyse the key drivers along China's partial liberalisation processes. Second, the focus will shift to recent political developments in the West, as a late reaction to a more assertive China and its 'wolf diplomacy', taking into account the weakness of the free world in the face of the China threat, given the apparent strengths identified in the examination of China's strategy. Finally, a brief section will be devoted to general conclusions integrating the results of the two perspectives.

Adapting to the market: leftist ideological justifications of liberal economic policies, 1977–1986

ABSTRACT Why do leftist forces accept, support and adopt free-market policies? To answer this question, we carry out a comparative study of left-wing groups (both parties and trade unions) in France, Italy and Spain during the late 1970s and the early 1980s. This period is widely acknowledged in international political economy to have represented a paradigm shift from post-war Keynesianism to neoliberal policy-making. We employ in-depth content analysis of memoirs, interviews to the press, opinion articles and policy-papers to explain actors’ positions on landmark policies implemented during such transition. In alignment with a developing literature in political economy (e.g. Mudge 2018), we find a proactive role of progressives in developing the ideological justification for the resort to liberal policies. However, we emphasise that widespread consensus among so-called progressives, rather than a leading role of technocrats or party experts, best explains such shifts. In this way, the paper casts doubts on interpretations of the liberalisation process that place excessive emphasis on the role of external constraints as well as on elite power. Drawing on Hall (1993), we argue that left-wing forces in the early 1980s have enacted a ‘second order change’, whereby policymakers use new instruments to meet existing policy objectives.

The Cultural Consequences of Market Transition: An Empirical Examination of Rising Materialism in Twenty-First-Century China

This study examines how markets affect personal culture in the context of postsocialist China. Drawing on several bodies of literature, I argue that China’s transition to a market economy promotes materialist values via two causal pathways. First, market transition entails a process of economic liberalization, which accentuates economic incentives and exacerbates existential insecurity. Second, market transition also entails a process of commodification that, by immersing individuals in market relations, crowds out intrinsic motives and normalizes the pursuit of material self-interests. My empirical analysis uses repeated cross-sectional data from a large-scale national survey to demonstrate the effect of market transition through the lens of work values. Taking advantage of China’s regional variations in the pace of institutional change, I show that, between 2005 and 2015, provinces where market transition had made greater progress tended to experience a sharper rise in materialist work values. Additional analyses reveal significant differences in work values between state-sector employees and workers in the market sector, and that the relationship between market transition and materialist values extends beyond the work domain. These findings contribute to the theoretical literature on the cultural consequences of markets and the empirical knowledge on cultural change in contemporary China.

Socialism and the Modernization Hypothesis

In Europe, people from post-Soviet countries tend to hold more negative attitudes toward immigration than people from Western societies. This pattern is also evident in the former East and West Germany. In line with the modernization hypothesis, previous research shows that worldviews have become more liberal across generations in Western societies over the last century. This study examines whether such processes of liberalization have taken place at a different pace in Western societies and in post-Soviet societies. To this end, I assess whether changes in attitudes toward immigration across birth cohorts differ between residents of post-Soviet countries and inhabitants of other types of welfare states. Using data from the European Social Survey, the German Socio-Economic Panel Study, and the German General Social Survey, this study shows that the pattern of later-born cohorts holding more liberal attitudes toward immigration is less pronounced in post-Soviet states than in other types of welfare states. These findings have implications for research on attitude change over time and the long-term persistence of communist practices, behaviors, values, and norms.

Impact of liberalization and globalization on economic growth: Empirical evidence from Türkiye

Globalization, as the process of integration of the world economy, increases international trade, capital movements, and technology transfer. This study examines the relationship between globalization and economic growth in the 1974-2022 period in Türkiye. In this study, the ARDL Bound method was used for cointegration analysis and the DCC-EGARCH model was used to capture time-varying relationships. The results of the ARDL-Bound model show a positive and long-term correlation between globalization and economic growth in Türkiye. According to the results of the DCC model, there has been a generally positive relationship between economic growth and the globalization index since 1984. Türkiye's economy has generally been positively influenced by economic liberalization processes and globalization. However, the export-oriented growth strategy seems to have lost its effect after 2005. Moreover, the globalization benefits of foreign direct investment were only evident between 2000 and 2009, after which the positive relationship decreased. In the interest of attracting FDI and promoting sustainable economic growth, Türkiye should review its investment-friendly policies and develop strategies aimed at long-term benefits.

Analysis of the Effects of the Economic Crises and Pandemic on Foreign Trade in 1994-2022 with RALS-LM Structural Break Unit Root Test Method: The Case of Türkiye

Türkiye commenced adopting export-led growth model by 1980. Via policies prioritizing the increase in export revenues, such as tax refunds, export credits, tax exemptions, and other subsidies, Türkiye targeted economic development by engaging in international trade and becoming a global economic agent. On the other hand, Türkiye gradually liberalized its financial markets starting in 1983 and completed the process of full liberalization of capital movements in 1989. However, adopting those liberal policies, Türkiye suffered many economic crises (1994, 2001, the 2008 global financial crises), paving the way to a sudden downturn in GDP, a decline in real income per capita, and employment. Also, the 2016 coup attempt, the 2018 Pastor Brunson crisis with the United States, and the COVID-19 pandemic in 2020, which created a severe global economic slowdown, negatively affected Türkiye’s economy. In this respect, within this paper, we aim to evaluate the impacts of those financial crises and the COVID-19 pandemic between the years 1994-2022 on Türkiye’s foreign trade and to find out if the effects of those crises on Türkiye’s foreign trade are temporary or permanent.
 For this reason, we utilized the RALS-LM Structural Break Unit Root Test Method. The results underline that the 2008 global financial crisis substantially affected Türkiye’s exports and imports. However, the results also underline that the effects of the 2008 global financial crisis on Türkiye’s foreign trade were temporary.

Indian cricket, popular culture and “national Thing”: Reflections from sport‐induced nationalism

AbstractCricket in India has evolved much beyond its fundamental definition as a game or form of entertainment in the present century. The liberalization process in the 1990s, followed by the drastic social changes in the country, impacted the game, leading it to acquire new meanings as cultural text. Currently, Indian cricket forms part of collective enjoyment, forming people's habitus and playing a central ideological role in the politics of ethnonationalism. This article attempts to analyze Indian Cricket using Slavoj Zizek's concept of “national Thing,” to critically understand its potential to evoke hyper‐nationalism in the Indian polity. The concept of “national Thing,” proposed by Zizek, postulates that the recourse to nationalism can cause a pleasure‐in‐pain situation and evoke extreme “enjoyment” (jouissance), which functions on the idea of sudden sense of loss. Drawing insights from this, this paper theoretically investigates sport‐induced nationalism in cricket in the backdrop of escalating neo‐nationalist sentiments in India. Additionally, the article expounds on how cricket becomes a “lost Thing” in Indian popular culture by critically analyzing the Indian film Kai Po Che (2013), in which cricket emerges as a social and political entity, intervening with the lives of ordinary youths in India.

‘We need the activists to be more entrepreneurial’: Global versus local modes of thought on the development of social enterprise support systems in transitioning economies

AbstractAs the processes of market liberalization and globalization increase the confidence of international actors involved in national third sectors, there exists a cosmopolitan tension between ‘mobile elites’ and ‘locked in’ nationals. This paper explores the impact of these tensions on the social enterprise ecosystem in the Republic of Poland and the Socialist Republic of Vietnam. Focused on the internationalized mechanisms of support, the relationship between the social enterprise incubators and international stakeholders, and power distance inherent to the global versus local debate, the findings suggest that normative isomorphic pressures are causing a fundamental ecosystem shift. The monopolization of support and terms of reference have led to entrepreneurs detrimentally being treated as ‘organizational heroes’ risking burnout, the primacy of international voices within the local context, and the transference of nationals from being ‘locked in’ to national processes to being ‘locked out’ of national support. The research suggests the cosmopolitan‐led transformation of activists into entrepreneurs needs to be more carefully considered, to ensure that enforced alignment to international system does not alienate them from other sources and means of sustainability.

Comparison of the Process of Public Tender and Direct Award in Rail Passenger Transport in Slovakia

European member states have been opening to competition in passenger rail transport in recent years, while others are still on the road to liberalization. The European Commission has decided to address the significant decline in rail transport performance through its competitiveness and sustainable development policy. The most important can be considered the removal of barriers, harmonization, and harmonization of standards. Finally, it is a process of liberalization, the aim of which is to ensure non-discriminatory access to the railway network for other carriers (national and private) from any member state, as well as to make the functioning of the existing monopoly more accessible. railway companies more efficiently. The article is focused on a comparison of the form of concluding contracts for transport performance in the public interest in railway passenger transport in the Slovak Republic. The article describes the process of concluding contracts for transport services in the public interest in the form of direct assignment and in the form of a public tender. The comparison of the public tender process and direct submission is applied for the line Bratislava - Dunajská Streda - Komárno. The requirements of direct awarding and public tendering are compared, as well as their advantages and disadvantages, as well as the criteria for evaluating bids in public tendering or in the case of direct awarding. Four indicators that influence this process are also compared.

Economic integration processes in East Asia - results, opportunities and challenges

The East Asian region is a major global economic player, given its economic size and potential. As such, regional economic integration of East Asia could be considered as an important building bloc towards integration of the Asia Pacific region. East Asia has made significant progress in creating institutions for closer cooperation and integration. East Asian regional production networks are the most integrated in the world, and regional financial initiatives have taken off. Gripped by this wave of regionalism, the East Asian economies have expedited further liberalization process and have started unmarked trade liberalization strategies, enhanced economic cooperation, and negotiating on currency un-ion. Since 1997, East Asian regionalism seems to have progressed and an East Asian Community is just around the corner. This paper is a study which presents the realities that East Asian regionalism is still lap-sided: economic regionalism is highly developed, while other key components (regional financial integration, education collaboration, and a regional political framework) are developing at a slower rate, stagnating, and/or regressing. It aims to present the reality of East Asian regionalism, provoke awareness of false perspectives, and present a recommendation towards a balanced and more sustainable East Asian integration.

Globalisation and Pace of Economic Growth in Nepal

Nepal faced serious economic crisis during mid 1980s. Overall balance of payment of the country turned negative in 1982/83 and it remained in the same pattern for three consecutive years. Nepal approached the IMF and the World Bank for their support in solving the economic crises that were being experienced at that time. In response to Nepal's approach these institutions helped Nepal with financial assistance with conditions in order to tide over the external imbalance. These institutions made reformation policies and Nepal had to implement these policies. Nepal entered into the new era of international economic order termed as 'Globalisation'. Nepal formulated and implemented many economic reformation policies compatible with the process of globalisation, liberalisation and privatisation in order to accelerate the process of economic globalisation. This paper aims at studying and analyzing effects of globalisation of Nepalese economy on GDP growth rate and its composition during last three decades starting from 1991/92. The study finds that the globalisation of Nepalese economy has not been able to accelerate the pace of economic growth at desired level.