Transition In Eastern Europe Research Articles

Localities, Natural Resources and Transition in Eastern Europe

This paper develops the claim that an emergent 'transition model of development' is resulting in the (re)marginalization of rural localities in post-communist countries. The specific case study of local development in a rural Bulgarian locality, since 1989, illustrates some of the ways in which this new model of development is combining elements of the communist and pre-communist development models alongside incipient market-capitalist relations. Careful attention to issues of'path dependence' (cf. Stark, 1992; Smith and Swain, 1998) proves quite useful for conceptual elaboration of the 'transition model of development'. The important role of the natural environment as the stage for local protest generated by this transition model of development and as the ultimate source of economic surplus is also discussed. In the conclusion some of the broader implications of these findings for the study of post-communist transition are explored.

Modemisation Theory, Income Evaluation, and the Transition in Eastern Europe

Modemisation Theory, Income Evaluation, and the Transition in Eastern Europe

Modernisation theory, income evaluation and the transition in Eastern Europe

This paper investigates perceptions and evaluations of the distribution of income in Eastern Europe before (1987) and after (1992) the velvet revolutions of 1989. These are compared to perceptions and evaluations in the West over the same period. Following suggestions in the recent literature that the transformation process in Eastern Europe can best be interpreted as a process of ongoing modernisation, modernisation theory is adopted as the theoretical framework. Hypotheses derived from modernisation theory are tested using data stemming from the International Social Survey Programme.

東欧の体制移行と対外環境

東欧の体制移行と対外環境

Second Thoughts from the Second World: Interpreting Aid in Post-Communist Eastern Europe

While some aspects of the socialist past made aid essential to political and economic transition in eastern Europe after 1989, other socialist legacies seemed to undermine aid programs. As a result, aid ended up actually reproducing characteristics of socialist practice that it was intended to redress. This article accounts for such an outcome by outlining the special problems of aid in the post-communist context. It then draws on case studies of aid in Bulgaria and Russia to illustrate these suggestions. Attention to the east European case also suggests broader lessons for aid providers, notably the need to pay greater attention to local interpretations of the idiom of aid in the post-Cold War era, when competing spheres of influence no longer motivate aid efforts.

The Czech and Slovak Clearing Agreement: a post-mortem

This paper examines the bilateral clearing agreement established in response to the separation of Czechoslovakia. The theoretical characteristics of bilateral clearing systems are identified and a model is applied to the agreement's netting, valuation and credit mechanisms. For each country, the utility of the bilateral arrangement depended on its ability to (1) maintain bilateral imports and (2) preserve convertible currency resources. Because adherence to the Czech and Slovak Clearing Agreement (CSCA) was asymmetric, the ability of bilateral arrangements to deter unilateral measures is questionable. The CSCA experience may also explain the lack of a wider use of bilateralism to deal with the transition in eastern Europe.

Poverty in transition in eastern Europe and the Commonwealth of Independent States: conceptual issues and some findings

Data from the UNDP-sponsored national human development reports is used to assess the extent of poverty in countries in transition in eastern Europe and the CIS. In order to do so, however, it has been necessary to clarify some of the conceptual issues, issues that have tended to become confused in recent years. These are in particular: (i) income-related poverty vs. welfare more broadly; (ii) poverty measurement at respectively the macro (national) vs. the micro (house­ hold) levels. It is a conclusion ofthe paper that poverty especially in the countries of the CIS is very different in kind from poverty elsewhere, requiring different forms of analysis and eventually differ­ ent forms of intervention.

Lessons from the Economic Transition: Central and Eastern Europe in the 1990s

Preface. Abbreviations. Introduction. Part I: Main Successes and Failures in the Transition Strategy. 1. Transition Approaches in Retrospect S. Zecchini. 2. The Transition in Eastern Europe and the Former Soviet Union: Some Strategic Lessons from the Experience of 25 Countries over Six Years N. Stern. 3. Transition to Date: A Comparative Overview M. de Melo, A. Gelb. 4. From Transition to Market: Evidence and Growth Prospects S. Fischer, et al. 5. Lessons to be Drawn from Main Mistakes in the Transition Strategy K. Laski, A. Bhaduri. 6. Adjustment Without Recession: A Case Study of Hungarian Stabilization J. Kornai. 7. The Interplay Between Economic and Political Transition L. Balcerowicz. 8. Political Constraints and the Transition Experience G. Roland. 9. Comments. 10. General Discussion. 11. Policy Conclusions. Part II: Enterprise Restructuring and Private Sector Development. 1. Comparing Two Great Depressions: 1929-33 to 1989-93 J. Rostowski. 2. Restructuring Outcomes and the Evolution of Ownership Patterns in Central and Eastern Europe P. Aghion, W. Carlin. 3. Corporate Governance and the Political Effects of Privatisation R. Frydman, A. Rapaczynski. 4. Large Privatisation, Restructuring and Foreign Direct Investment G. Hunya. 5. The Evolution of Bank Credit Quality in Romania Since 1991 O.V. Carare, E. Perotti. 6. Comments. 7. General Discussion. 8. Policy Conclusions. Part III:Unemployment and the Reform of Social Policies. 1. Unemployment, Restructuring and the Pace of Transition S. Commander, A. Tolstopiatenko. 2. Transformation as a Demographic Crisis M. Ellman. 3. Labour Market Policy and the Reallocation of Labour Across Sectors R. Jackman, C. Pauna. 4. Central and Eastern European Labour Markets in Transition M. Gora. 5. Reforming Tax and Benefit Systems in Central Europe: Lessons from Hungary D.M. Newbery. 6. Comments. 7. General Discussion. 8. Policy Conclusions. Part IV: External Policies. 1. Currency Convertibility in Transforming Economies: Was it a Mistake? R.N. Cooper. 2. Exchange Rate Policies in Post-Communist Economies D. Rostai. 3. Access to Western Markets, and Eastern Effort Levels E.E. Leamer. 4. Interrelations Between Subregional Co-Operation and EU Enlargement A. Inotai. 5. Foreign Direct Investment in Eastern Europe and the Former Soviet Union: Results from a Survey of Investors H.-P. Lankes, A.J. Venables. 6. Comments. 7. General Discussion. 8. Policy Conclusions.

BOOK REVIEWS

Book reviewed in this article:ARGUMENTS ABOUT ABORIGINES: Australia and the Evolution of Social Anthropology By L. R. Watt.ABORIGINAL SOVEREIGNTY: Reflections on Race, State and Nation By Henry Reynolds.OBSERVATIONS MADE DURING A VOYAGE ROUND THE WORLD Johann Reinhol Forster.PEOPLE, PLACES AND POLICES: Aspects of Queensland Administration 1859–1920 Edited by Kay Cohen and Kenneth Wiltshire.AN AUSTRALIAN DEMOCRAT: The Life, Work and Consequences of Andrew Inglis Clark Edited by Marcus Howard and James Warden.WITH LANE IN PARAGUAY: Harry Taylor of The Murray Pioneer 1873–1932 Edited, with a biographical sketch, by Don Gobbett and Malcolm Sounders.A VERITABLE DYNAMO: Lloyd Ross and Australian Labour 1901–1987 By Stephen Holt.ANZUS IN REVISION: Changing Defense Features of Australia and New Zealand in the Mid‐1980s By Lieutenant Colonel Frank P. Donnini.THE 1992 PAPUA NEW GUINEA ELECTION: Change and Continuity in Electoral Politics Edited by Yaw Saffu.THE RIGHT ROAD: A History of Right‐Wing Politics in Australia By Andrew Moore.POLITICS ONE Randall G. Stewart and Ian Ward.THE STATE IN QUESTION: Transformations of the Australian State Edited by Paul James.WE THE PEOPLE Edited by George Winterton.PEOPLE POLICY: Australia's Population Choices By Doug Cocks.A CONCISE HISTORY OF WORLD POPULATION By Massimo Livi‐Bacci. Translated by Carl Ipsen.THE HOUSE OF LORDS AND IDEOLOGICAL POLITICS: Lord Salisbury's Referendal Theory and the Conservative Party, 1846–1922 By Corinne Comstock WestonELIXIR OF EMPIRE: The English Public Schools, Ritualism, Freemasonry and Imperialism By P. J. Rich.NATIONALISM IN EUROPE, 1815 TO THE PRESENT: A Reader Edited by Stuart Woolf.IMPERIAL GERMANY 1867–1918: Politics, Culture, and Society in an Authoritarian State By Wolfgang J. Mommsen, translated by Richard Devesnn.FROM A ONE‐PARTY STATE TO DEMOCRACY: Transition in Eastern Europe Edited by Janina Frentzel‐Zagórska.THE ORDINARY AND THE EXTRAORDINARY: An Anthropological Study of Chinese Reform and the 1989 People's Movement in Beijing By Frank N. PiekeTHE EGALITARIAN MOMENT: Asia and Africa 1950–1980 By Anthony Low.INDIGENOUS CAPITAL IN KENYA: The “Indian” Dimension of the Debate By Michael Cowen and Scott MacWilliamETHICAL PRACTICE IN GOVERNMENT: Improving Organisational Management Edited by John Uhr.DEMOCRACY AND THE GLOBAL ORDER: From the Modern State to Cosmopolitan Governance By David Held.COMPARATIVE POLITICAL PHILOSOPHY: Studies Under the Upas Tree Edited by Anthony J. Parel and Ronald C. Keith

The challenge of design of intergovernmental relations in economies in transition

The governments of Eastern Europe and the former Soviet Union are at a crucial juncture in their movement from highly centralized command economies to more decentralized market economies. While there is a belief in these countries that decentralization brings greater economic efficiency, the reality is that such a transition is a difficult process. This paper examines what types of administrative reforms are needed for the decentralization process, how far along the countries are with respect to these reforms, and what reforms are missing. As we discuss, many of the necessary administration reforms are missing and we argue that more attention must be paid to these elements for successful decentralization of these governments. This paper examines the recent experience and reform needs of the key administrative aspects of the design of intergovernmental relations in countries in transition in Eastern Europe and in the former Soviet Union. There is a widespread realization in all of these countries that decentralizing government will help increase efficiency in the public sector just as privatization will improve efficiency in their economies. Decentralization of government operations is also attractive as a way to cement a democratic form of government. Despite the appearances of the existence of an already decentralized system, such as in the case of the Soviet Union, this experiment started in practically all cases with a lack of institutions and experience on how decentralized government operations should be organized. As different as these countries are, there are many similarities in the reform process they are following in order to decentralize government structure. While the basic components of a decentralized system of government are emerging in many of these countries the structure of government has not fully evolved in a manner that can support such a decentralized system. Often, governments remain structured along a vertical hierarchy: information, budgetary authority, and revenue pass from the central government down to subnational levels of government while little communication or interaction exists at a horizontal level. In general, the assignment of revenue and expenditure has not been clearly defined among the two or three levels of government, central government transfers continue to occur in a relatively ad hoc manner, and the entire budgeting system still rests in many cases on more or less formal system of negotiations and bargaining among the different levels of government. There has been some change in this structure in certain countries. Over the last three years, both Poland and Hungary have legally increased the automony of subnational governments. In 1994 in Russia a new and more transparent system of intergovernmental grants has been established between the federal government and the regions. In 1994 also, Latvia introduced a more transparent formula-driven, transfer formula for the regional and municipal governments. The focus of this paper is to develop a “blue print” for necessary changes in organization and administration of intergovernmental relations in countries in transition. While many experts have recently been discussing the public finance policy components of this new, evolving relationship among levels of government, less attention has been paid to the structural and administrative challenges and the information design issues that must be met in order to develop and support a system of intergovernmental relations. The paper is organized as follows: First we review the major responsibilities and their allocation among levels of government, the assignment of revenue sources, and the system of transfers. We then turn to a discussion of the current experience of Eastern European and NIS countries in the context of the structural components of an intergovernmental fiscal system. Next, we analyze the organizational reforms that are necessary for the efficient functioning of a decentralized system of government in the economies in transition. Finally we “rate” the transition economies in relation to their current design of the system of intergovernmental relations and support mechanisms.

Output decline in Eastern Europe: a comparsion of some explanations for Poland

The paper combines and compares in a uniform framework various explanations for output decline during transition in Eastern Europe. The framework is provided by a computable general equilibrium model, calibrated for Poland, and used to quantify the consequences of some phenomena advanced as reasons for output collapse. From the simulation results, the most convincing explanation seems to lie on the supply, rather than demand side. A slight change in production efficiency leads to a relatively large change in output. At the same time, a very strong demand shock is necessary to produce a relatively minor effect on output. In particular, a very substantial reduction in consumer demand is needed to produce output contraction.

Book Reviews

Book reviewed in this article:Bristow, John A., The Bulgarian Economy in TransitionDobrinsky, Rumen and Michael Landesmann, eds., Transforming Economies and European Integration Bibliography on Economic Transition in Eastern Europe. English and German language titles published in the years 1990 to April 1993. Compiled by Milija Pajevic and Frauke Siefkes, Zentralbibliothek der Wirtschaftswissenschaften in der Bundesrepublik Deutschland (ZBW), and Lilian Djekovic Verlag (LDV)Hassan, John, Paul Nunn, Judith Tomkins, and Iain Fraser, The European Water Environment in a Period of Transformation

Revolution from Within: Institutional Analysis, Transitions from Authoritarianism, and the Case of Hungary

The Hungarian transition from socialism stands out from other examples of political change in the region, in that the ruling Hungarian Socialist Workers' Party (MSZMP) suffered an erosion of political power generated largely from within the party itself. The study shows how the Communist Party, after its destruction in the revolution of 1956, sought to institutionalize its rule through a course of limited liberalization and the broad co-optation of the populace. This policy helped create a tacit social compact with society, particularly in co-opting younger intellectuals who identified with the goals of reform socialism. However, the party eventually marginalized this group, creating an internal party opposition that supported socialism but opposed the MSZMP. Consequently, when the limits of Hungarian reform socialism became evident in the mid-1980s, rank-and-file intellectuals within the party began to mobilize against the party hierarchy, seeking to transform the MSZMP into a democratic socialist party. These “reform circles,” drawing their strength primarily from the countryside, spread to all parts of the party and helped undermine central party power and expand the political space for opposition groups to organize. Eventually, the reform circles were able to force an early party congress in which the MSZMP was transformed into a Western-style socialist party prior to open elections in 1990.The case is significant in that it indicates that the forms of transition in Eastern Europe were not simply the specific outcome of elite interaction. Rather, they were shaped in large part by the patterns of socialist institutionalization found in each country. Therefore, studies of political transition can be enriched with an explicit focus on the institutional characteristics of each case, linking the forms of transitions and their posttransition legacies to the institutional matrix from which they emerged. In short, the study argues that the way in which an autocratic order perpetuates itself affects the manner in which that system declines and the shape of the new system that takes its place.

Cities and Buildings: Skyscrapers, Skid Rows, and Suburbs. Larry R. Ford;The Transition in Eastern Europe. Olivier Jean Blanchard, Kenneth A. Froot, and Jeffrey Sachs, editors;A Sense of Place, A Sense of Time. John Brinckerhoff Jack

(1996). Cities and Buildings: Skyscrapers, Skid Rows, and Suburbs. Larry R. Ford; The Transition in Eastern Europe. Olivier Jean Blanchard, Kenneth A. Froot, and Jeffrey Sachs, editors; A Sense of Place, A Sense of Time. John Brinckerhoff Jack. Urban Geography: Vol. 17, No. 4, pp. 373-376.

BOOK REVIEWS

Book reviewed in this article: New Directions in Spatial Econometrics, edited by Luc Anselin and Raymond J.G.M. Florax. Urban Travel Demand Modeling: From Individual Choices to General Equilibrium, by Norbert Oppenheim. The Economic Growth of Singapore: Trade and Development in the Twentieth Century, by W. G. Huff. Water in the Arab World: Perspectives and Prognoses, edited by Peter Rogers and Peter Lydon. China Deconstructs: Politics, Trade and Regionalism, edited by David S. G. Goodman and Gerald Segal. Technological Change, Economic Development and Space, edited by Cristoforo S. Bertuglia, Manfred M. Fischer, and Giorgio Preto. Local and Regional Development During the 1990s Transition in Eastern Europe, edited by Markku Tykkyliiinen. Territorial Competition in an Integrating Europe, edited by Paul Cheshire and Ian Gordon. State Per‐Capita Income Change Since 1950 Sharecropping's Collapse and Other Causes of Convergence, by Leonard F. Wheat and William H. Crown.

The 1995 International Energy Workshop: the poll results and a review of papers

The report summarizes the highlights of the 1995 IEW meeting held at the IIASA Conference Center in Laxenburg, Austria. It gives an overview of the poll results and presents two issues discussed at the meeting. The first focused on global and regional energy markets with a particular emphasis on the situation in countries undergoing economic transition in Eastern Europe and the former Soviet Union; the second topic concentrated on energy-related environmental issues with an emphasis on climate change. This report illustrates the usefulness of the IEW as a forum for establishing a consensus and assessing the divergence within the energy research community concerning likely future developments. The medians of the poll results represent the conventional wisdom about possible future trends of oil prices, primary energy consumption, and carbon dioxide emissions. The standard deviation is also presented in this report for future developments, and shows the degree of dissension within the research community. For some analyses, it is also useful to know the extreme views about the future within the research community, and these are given in the poll results that fall outside of the standard deviation. The paper analyzes how the poll results have evolved over the past 15 years, and presents some of the salient reasons for the consensuses and disagreements concerning future energy-related developments.

Modelling income distribution in countries in transition: A computable general equilibrium analysis for Poland

The paper designs an analytical framework suitable for modelling distributional issues of transition in Eastern Europe. It involves a computable general equilibrium model, with a social accounting matrix (SAM) serving as a database. The model is disaggregated with respect to production activities, factors of production and households. In particular, the household sector is disaggregated by socioeconomic groups, distinguished by their source of income. The data for Poland in 1990 have been used to calibrate the model. The distributional consequences of a decline in output and of privatization are examined in simulation experiments.

Economic transition in Eastern Europe and Russia: realities of reform

Thirteen essays by acknowledged economic experts explore the rapid changes in the transition economies of Eastern Europe, with discussions on political and economic freedom, monetary control and privatization, labor markets and social safety nets, and taxation and crime.

The Transition in Eastern Europe: Volume I: Country Studies.

The Transition in Eastern Europe: Volume I: Country Studies.

The Rural Transition in Eastern Europe

The Rural Transition in Eastern Europe