58876 - Economics of Transition in Central Europe

Learning outcomes

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.

Course contents

This is the first of two modules on economic transition. This first module uses a comparative approach to study of the new EU member states' economic transition since 1989. 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, inequality, 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 the structure of the economies. 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 the new EU member states' energy policies. Finally we will look at the impact of the global financial crisis on this region, and the emergence of varieties of capitalism.

Readings/Bibliography

Core textbooks:

• Myant, Martin and Jan Drahokoupil, Transition Economies: Political Economy in Russia, Eastern Europe, and Central Asia. Blackwell-Wiley, 2010
• Bohle, Dorothee and Bela Greskovits, Varieties of Capitalism on Europe’s Periphery, (2012) Cornell University Press
• Aslund, Anders, How Capitalism Was Built: The Transformation of Central and Eastern Europe, Russia and Central Asia . Cambridge University Press, 2007

Additional reading:

Myant, Martin and Jan Drahokoupil, eds. Transition Economies after 2008 Responses to the crisis in Russia and Eastern Europe, (2014) Routledge

Aslund, Anders, The Last Shall be the First: The East European Financial Crisis . Peterson Institute for International Economics, 2010

 Gros, Daniel & Alfred Steinherr, Economic Transition in Central and Eastern Europe: Planting the Seeds. Cambridge University Press, 2004

 Aslund, Anders, Building Capitalism: The Transformation of the former Soviet Bloc . Cambridge University Press, 2002

 Bartlett, William, Europe's Troubled Region. Economic development, institutional reform and social welfare in the Western Balkans , Routledge, 2008

 Kornai, Janos, The Socialist System: The Political Economy of Communism. Princeton: Princeton University Press, 1992

 Buchan, David. Eastern Europe's energy challenge: meeting its EU climate commitments. Oxford Institute for Energy Studies, 2010

 EBRD (European Bank for Reconstruction and Development) Transition Report , 1996-2015

 EBRD Working papers. http://www.ebrd.com/pubs/econo/series/wp.htm

 Roland, Gerard. Transition and Economics . MIT Press, 2000

 Lavigne, Marie. The Economics of Transition: From Socialist Economy to Market Economy . St. Martin's Press, 1999

 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 Papershttp://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

Teaching methods

Lectures with power point presentation, with abundant class participation.

Assessment methods

A mid-term exam consisting of a choice of 3 out of 5 essay questions will be given covering the first (Central Europe) module.

A research paper (2,500-3,000 words) will be required on a topic related to the course themes. Students will give a 10-15 minute oral presentation (optional Power Point) on their research paper. Research papers and presentations will be due at the end of the second module on Southeast Europe.

A final 3-hour written exam at the end of the second module covering both modules. The exam consists of a choice of 5 out of 7 essay questions.

Examination date: January, 2018

Exam results will be sent to the Secretariat Office: February, 2018

The outcome of the module will be averaged to that of the other module composing the integrated course in order to determine the final grade.

Teaching tools

Computer and projector

Office hours

See the website of Carolyn Ann Kadas