58876 - ECONOMICS OF TRANSITION IN CENTRAL EUROPE

Anno Accademico 2018/2019

  • Docente: Carolyn Ann Kadas
  • Crediti formativi: 4
  • SSD: SECS-P/02
  • Lingua di insegnamento: Italiano
  • Modalità didattica: Convenzionale - Lezioni in presenza
  • Campus: Forli
  • Corso: Laurea Magistrale in Interdisciplinary research and studies on eastern europe (cod. 8049)

Conoscenze e abilità da conseguire

Student is expected to have an in-depth knowledge of Central European economies either in regional terms or looking at individual countries' economic strategies and policy choices particularly in market economies macroeconomic stabilization, microeconomic adjustment, privatization, and price, trade and financial liberalization.

Contenuti

Economics of Transition in Central Europe and South East Europe

Prof.: Carolyn Kadas, M.A.

MIREES, Fall, 2018

Overview

This is a comparative study of the Central and South East European countries’ economic transition since 1989, taught in two parts, the first focusing on the central European countries (the new EU member states or NMS) and the second part focusing on the south east European countries. The course also touches upon the experience of economic transition in Russia and the former Soviet republics for comparative purposes. The course begins by examining the basic features of the pre-1989 Soviet-type command economies, focusing on the origins of economic decline in the 1980s. We then look at individual countries’ economic strategies and policy choices in introducing market reforms in terms of macroeconomic stabilization, microeconomic adjustment, privatization, and price, trade and financial liberalization. We will examine the development of labour markets, unemployment, social costs and benefits of transition, as well as the transformation of social welfare systems, demographic trends, healthcare and pension reform. We will look specifically at local firms and how factors from the past and new foreign investment have impacted enterprise development and economic structure. The process of EU accession and its effects on economic growth, as well as issues involved in entering the Euro zone will be studied. We examine infrastructure development, energy policies and tax policies. Finally we will look at the impact of the global financial crisis on these regions, economic recovery and the factors behind the new EU members’ recent economic dynamism compared to “old Europe”.

Pre-requisites A basic understanding of economics is desirable but not necessary


Core Textbooks:

  • Myant, Martin and Jan Drahokoupil, Transition Economies: Political Economy in Russia, Eastern Europe, and Central Asia,(2010) Wiley-Blackwell
  • Aslund, Anders, How Capitalism was Built: The Transformation of Central and Eastern Europe, Russia, and Central Asia (2007) Cambridge University Press
  • Bohle, Dorothee and Bela Greskovits, Capitalist Diversity on Europe’s Periphery. Cornell University Press, 2012
  • Lavigne, Marie, The Economics of Transition: From Socialist Economy to Market Economy (1999) Macmillan
  • Sznajder Lee, Aleksandra, Transnational Capitalism in East Central Europe’s Heavy Industry: From Flagship Enterprises to Subsidiaries (2016) University of Michigan Press
  • R.J. Crampton. The Balkans Since the Second World War (Pearson, 2002)
  • Will Bartlett. Europe's Troubled Region: Economic Development, Institutional Reform and Social Welfare in the Western Balkans (Routledge, 2008).
  • Milica Uvalic. Serbia’s Transition: Towards a Better Future (Palgrave, 2010)

Syllabus Part I : Economics of Transition in Central Europe

Lecture 1: Introduction

  • Defining macro-economic terms
Lecture 2: Origins of economic decline in Eastern Europe
  • Features of Stalinist systems, 1950s
  • Soft budget constraint
  • Shortage economy
Lecture 3: Pre-1990 attempts at economic reform and economic collapse.
  • Pre-1989 economic reforms
  • Import-led growth
  • Foreign indebtedness
  • Socialist market economy
  • Collapse of Soviet-type systems
Lecture 4: Beginning of transition from command to market economy
  • Strategies and priorities of economic transformation – the Washington consensus
  • Macroeconomic stabilization and economic liberalization
  • Shock-therapy vs. gradualism
  • Economic recession, output fall
Lecture 5: Privatization
  • Political constraints on privatization
  • Centralized and decentralized privatization
  • Modes of privatization - Voucher privatization, management and employee buy-outs, direct sales.
  • Share of private sector in economies
Lecture 6: State-building and social effects of transition – the Baltics
  • Re-birth of 3 nations
  • Policy choices
  • International influences
Lecture 7: State-building and social effects of transition – the Visegrad countries
  • Priorities in the new welfare states
  • Taxation, public spending
Lecture 8: Enterprise Development and Foreign Direct Investment
  • Shock and recovery
  • Growth of new firms
  • Different business environments: Russia vs. Central Europe
  • Foreign direct investment
Lecture 9: EU accession and Euro zone entry
  • Accession effects on economic growth, FDI
  • Maastricht criteria and new member states
  • Balassa-Samuelson effect
Lecture 10: Impact of global economic crisis on CEE
  • Varieties of capitalism
  • Economic conditions prior to the “crash”
  • Role of international financial institutions
  • Lessons learned

Mid-term test on Part I

Part II: Economics of Transition in Southeast Europe

Lecture 12: Basic features of Yugoslav economy

  • Basic features of Yugoslav economy prior to 1990s

Lecture 13: Economic systems of Romania, Bulgaria and Albania prior to the transition

Lecture 14: The 1990s in ex-Yugoslavia, Romania, Bulgaria and Albania

Lecture 15: Privatization and FDI in the Balkans

Lecture 16: Social effects of transition – migration, remittances, unemployment, labor market dynamics, healthcare, education.

Lecture 17: EU integration and regional economic integration – Romania and Bulgaria, Western Balkans

  • Trade integration
  • Conditionality, institutional reform

    Lecture 18: Impact of global economic crisis on SEE

  • Fiscal and monetary policy measures
  • Euroization – causes and effects
  • Poverty levels

Lecture 19: Student presentations

Lecture 20: Student presentations, review

Testi/Bibliografia

Core Textbooks:

  • Myant, Martin and Jan Drahokoupil, Transition Economies: Political Economy in Russia, Eastern Europe, and Central Asia,(2010) Wiley-Blackwell
  • Aslund, Anders, How Capitalism was Built: The Transformation of Central and Eastern Europe, Russia, and Central Asia (2007) Cambridge University Press
  • Bohle, Dorothee and Bela Greskovits, Capitalist Diversity on Europe’s Periphery. Cornell University Press, 2012
  • Lavigne, Marie, The Economics of Transition: From Socialist Economy to Market Economy (1999) Macmillan
  • Sznajder Lee, Aleksandra, Transnational Capitalism in East Central Europe’s Heavy Industry: From Flagship Enterprises to Subsidiaries (2016) University of Michigan Press
  • R.J. Crampton. The Balkans Since the Second World War (Pearson, 2002)
  • Will Bartlett. Europe's Troubled Region: Economic Development, Institutional Reform and Social Welfare in the Western Balkans (Routledge, 2008).
  • Milica Uvalic. Serbia’s Transition: Towards a Better Future (Palgrave, 2010)

Additional reading:

  • Buchan, David. Eastern Europe’s energy challenge: meeting its EU climate commitments, Oxford Institute for Energy Studies, 2010
  • John Lampe, Balkans into Southeast Europe (Palgrave 2006)
  • R.J. Crampton, The Balkans Since the Second World War (Pearson 2002)
  • Harold Lydall, Yugoslavia in Crisis (Clarendon Press 1989)
  • Susan Woodward, Balkan Tragedy: chaos and dissolution after the Cold War (Brookings Institution, 1995)
  • David Turnock, Aspects of Independent Romania’s Economic History with Particular Reference to Transition for EU Accession (2007)
  • Štiblar, F. The Impact of the Global Crisis on Montenegro and the Western Balkans, CBM, Podgorica, 2009
  • EBRD (European Bank for Reconstruction and Development) Transition Report, 1996-2009
  • EBRD Working papers. http://www.ebrd.com/pubs/econo/series/wp.htm
  • Roland, Gerard. Transition and Economics. MIT Press, 2000
  • EIU, Economies in transition: Eastern Europe and the former Soviet Union, Regional overview (quarterly report)
  • Pacek, Nenad and Daniel Thorniley, Emerging Markets, lessons for business success and the outlook for different markets, The Economist, 2004 and 2007 editions
  • Wiener Institut fuer Internazionale Wirtschaft (Vienna Institute for International Economics - WIIW), http://www.wiiw.ac.at
  • William Davidson Institute, University of Michigan. Working Papers http://ideas.repec.org/s/wdi/papers.html
  • World Bank newsletter Beyond Transition, http://newsletters.worldbank.org

Many of the recent articles on transition economies are published in the following journals: Journal of Comparative Economic, Comparative Economic Studies, Economics of Transition

Metodi didattici

Lectures outlined in Power point presentations with abundant class participation


Modalità di verifica e valutazione dell'apprendimento

Mid-term test, short research paper and presentation

  1. Mid-term essay test (2-hours, 3 essay questions chosen from a total of 5 questions)
  2. Research paper of 2500-3000 words and 10 minute oral presentation (with Power Point) on a topic chosen from the themes we will be covering in class
Final exam

Written, 3-hour exam. 5 essays chosen from a total of 7 essay questions.

Grading system

Mid-term test: 25%

Research paper and presentation: 25%

Final Exam: 50%

Strumenti a supporto della didattica

Computer with projector

Orario di ricevimento

Consulta il sito web di Carolyn Ann Kadas