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This thought-provoking book investigates the political and economic transformation that has taken place over the past three decades in Central, Eastern and Southeastern Europe (CESEE) since the fall of the Iron Curtain. Through an examination of both the successes and shortcomings of post communist reform and the challenges ahead for the region, it explores the topical issues of economic transition and integration, and highlights lessons to be learned.
Transition Economies provides students with an up-to-date and highly comprehensive analysis of the economic transformation in former communist countries of Eastern and Central Europe and countries of the former Soviet Union. With coverage extending from the end of central planning to the capitalist varieties of the present, this text provides a comparative analysis of economic transformation and political-economic diversity that has emerged as a direct result. It covers differences between countries in terms of economic performance and integration into the world economy. Transition Economies seeks to explain and deepen understanding of these differences, chart the emerging forms of capitalism there, and provide country responses to the world financial crisis of 2008-2009.
The idea for this volume came from the enigma that some Central and Eastern European (CEE) European Union (EU) member states have been keen to join the Eurozone while others have shown persistent reluctance. Moreover, the attitudes towards joining have seemingly not correlated with either the level of economic development or the time spent as part of the EU, nor with any other rational reason such as the level of integration into the EU real economy, or the level of trust in the EU on the part of the public. Therefore, at first sight, the answer to the question ‘why in, why out?’ remains rather unclear. The attractiveness of the currency union has nevertheless not disappeared for the CEE countries. Despite the Eurozone crisis of 2010–13, it was during that time that the Baltic states introduced the euro. Then, after a few years of inactivity, Croatia and Bulgaria successfully applied for membership of the exchange rate mechanism in July 2020, amid the economic crisis caused by the coronavirus (COVID-19) pandemic. At the same time, the three Visegrad countries still using their national currencies – Poland, Czechia and Hungary – no longer have a target date to join the monetary union. This volume aims to discuss these issues from horizontal aspects and through country studies, with contributions from expert authors from, or closely related to, the CEE region.
Very few studies have ventured to explore the shift in economic ideas that were such a critical factor in shaping and understanding the East European transition process. Paul Dragos Aligica and Anthony J. Evans have seized upon the potential that this crucial case has to illuminate the larger phenomenon of diffusion and adoption of economic ideas. Two different but related research agendas are developed: the study of the spread of neoliberalism as seen from the perspective of Eastern European post-communist evolutions and the study of Eastern European transition as seen from an ideas-centered perspective. Combining a distinctive synthesis of the existing data about the spread of neoliberal economic ideas in Central and Eastern Europe with an analysis of the processes at work, the authors challenge a series of misunderstandings and myths about the spread of neoliberal economic ideas. The disputed topics include: the myth of an Eastern European rush to embrace the theories and ideas that may be considered the mark of market fundamentalism ; the notion that a harsh neoliberal dogmatism was somehow imposed on the region from outside; the idea that the standardization and regimentation of economic thinking was a result of the spread of the Western way of doing economics; and the belief that the Eastern Europeans passively embraced this uniformity and standardization due to pressure from the Westerners. This unusual synthesis will appeal to scholars in economics, political science, communist/post-communist studies and new institutionalism, as well as policymakers.
Introduction: Transition from communism - qualified success or utter catastrophe? -- The plan for a J-curve transition -- Plan meets reality -- Modifying the framework -- Counter-narratives of catastrophe -- Where have all the people gone? -- The mortality crisis -- Collapse in fertility -- Outmigration crisis -- Disappointment with transition -- Public opinion of winners and losers -- Evaluations shift over time -- Towards a new social contract? -- Portraits of desperation -- Resistance is futile -- Return to the past -- The patriotism of despair -- Conclusion: Towards an inclusive prosperity.
This critically acclaimed, best-selling text offers a comprehensive introduction to the post-World War II political systems of Great Britain, France, Italy, Germany, and the European Union. The concept of European politics in transition is presented through four key themes: the role of each country in economic management; the interaction of countries within the international order; challenges facing European democracies; and the political impact of social diversity.
After the collapse of communism in the Soviet Union and eastern Europe, more than a dozen countries undertook aggressive privatization programs. Proponents of economic reform championed such large-scale efforts as the fastest, most reliable way to make the transition from a state-run to a capitalist economy.The idea was widely embraced, and in the span of a few years, policymakers across the region repeatedly chose an approach that distributed vast amounts of state property to the private sector essentially for free-despite the absence of any historical precedent for such a radical concept. But privatization was not a panacea. It has, instead, become increasingly synonymous with collusion, corruption, and material deprivation.Why was privatization so popular in the first place, and what went wrong? In answering this question, Hillary Appel breaks with mainstream empirical studies of postcommunist privatization.By analyzing the design and development of programs in Russia, the Czech Republic, and across eastern Europe, Appel demonstrates how the transformation of property rights in these countries was first and foremost an ideologically driven process. Looking beyond simple economic calculations or pressure from the international community, she argues that privatization was part and parcel of the foundation of the postcommunist state.A New Capitalist Order reveals that privatization was designed and implemented by pro-market reformers not only to distribute gains and losses to powerful supporters, but also to advance a decidedly Western, liberal vision of the new postcommunist state. Moreover, specific ideologies-such as anticommunism, liberalism, or nationalism, to name but a few-profoundly influenced the legitimacy, the power, and even the material preferences of key economic actors and groups within the privatization process.
The collapse of centrally administered socialism in Russia and Eastern Europe resulted in what is commonly referred to as the transition problem: the transformation from a centrally administered socialist economic system to one that is market-based. Economic science has been faced with the challenge of developing an appropriate body of analysis, advice, and direction to help other nations that may be undergoing this process. In this volume, John Marangos adopts a political economy approach that yields alternative models of transition. The volume develops transition models from what Marangos defines as the primary elements of six variables: (1) economic analysis; (2) definitions of the Good Society; (3) speed of transition; (4) political structure; (5) ideological structure; and (6) initial conditions. The models developed include: the shock therapy model, the neoclassical gradualist model of transition, the post Keynesian model, the pluralistic market, the socialist model, and the non-pluralistic market socialist model. After identifying the primary elements of each transition model, Marangos considers the elements of each model with respect to the desirable reforms. An essential element of the transition process is not only to identify the necessary reforms but also a sequence in which the reforms should be introduced. For each transition model developed in this book, a set of primary and secondary elements were provided in conjunction with a sequence of reforms. Analyzing the transition problem from a political economy perspective, Marangos shows that it is possible to have inconsistencies within each transition model and between transition models yet be able to identify the potential for implementation and maintenance of necessary reforms each model recommends. This volume contributes to the understanding of the process of transition, with the objective of identifying an optimal model of transition.
By the 30th anniversary of the fall of the Berlin Wall, in most parts of Eastern Europe, high expectations associated with postsocialist transition have been substituted by disillusionment. After 1990, Eastern Europe has been internationally treated with a low-interest acknowledgement of what was understood as a slow and erratic, but unquestionable process of integration in a Western-dominated world order. In the context of today's geopolitical reorganization, East European examples of authoritarian politics once again become discussed as significant reference points for Western and global politics. This book represents a contribution to this debate from a distinctive East European perspective: that of new left scholars and activists from the region, whose lifetime largely corresponds to the transformations of the postsocialist period, and who came to develop an understanding of their environment in terms of its relations to global capitalist processes. A both theoretical and empirical contribution, the book provides essential insights on topics conventionally associated with East European transition from privatization to the politicized slogans of corruption or civil society, and analyzes their connection to the newest reconfigurations of postsocialist capitalist regimes. As a contribution to contemporary debates on the present global socio-political transformation, this collection does not only seek to debate analytical statements, but also to change the field where analytical stakes are set, by adding perspectives that think Eastern Europe's global relations from within the regional context and its political stakes. Agnes Gagyi works on East European politics and social movements from the perspective of the region's long-term global integration. She is researcher on East European social movements at the University of Gothenburg, and member of the Working Group for Public Sociology "Helyzet" in Budapest. Ondřej Slačálek is a political scientist and journalist, he focuses on East European politics, nationalism and social movements. He works at Charles University, Prague. He is a regular collaborator of Czech new left journal A2/A2larm.