LIST OF PARTICIPANTSin the 15th international

Workshop on European Economic Interaction and Integration

Vienna, 21 to 25 November 1993

Karl Aiginger

Vlt Barta

Amit Bhadurtl

Carlo Boffito

Oleg T. Bogomolov

Helen Boss

Christina Bruck

W10dzimierz Brus

Guillermo A. Calvo·)

Bernard Cazes

Professor of Economics, University of Linz,

and Austrian Institute of Economic Research

(WIFO), Vienna, Austria

Economic Transition and Integration Project,

International Institute for Applied Systems

Analysis (IIASA) , Laxenburg, Austria

Professor, Jawaharlal Nehru University, New

Delhi, and The Vienna Institute for Comparative

Economic Studies (WIIW), Vienna, Austria

Professor, University of Turin, Italy

Academician, Director, Institute of International

Economic and Political Studies, Russian

Academy of Sciences, Moscow, Russia

The Vienna Institute for Comparative Economic

Studies (WIIW), Vienna, Austria

Associate, The Mitsubishi Bank, Ltd., Vienna

Representative Office, Vienna, Austria

Emeritus Professor, University of Oxford, UK

Senior Advisor, Research Department, Inter­

national Monetary Fund, Washington DC, USA

Former Head, Division of Long-Term Studies,

Commissariat General du Plan, Paris, France

.) author, but unable to attend the workshop 511

Simon Commander

Fabrizio Coricelli

Robert S. Dohner

Georg Fischer

Erich FrOschl

Ingrid Gazzari

Peter Goldscheider

lise Grosser

Peter Haiss

Peter Havlik

Eduard Hochreiter

The World Bank, International Bank forReconstruction and Development, InternationalDevelopment Association, Washington DC, USA

Department of Political EconomyI University ofSiena, Italy

Principal Administrator, Central and EasternEurope Division, Economics Department,Organisation for Economic Co-operation andDevelopment, Paris, France

Federal Ministry of Finance, Cabinet of theFederal Minister, Vienna, Austria

Director, Dr. Karl Renner Institute, Vienna,

Austria

Administrative Director, The Vienna Institute forComparativeEconomicStudies(WIIW),Vienna,Austria

EPIC, Goldscheider und WurmbOck Unter­nehmensberatungsges. m.b.H.,Vienna, Austria

TheVienna Institute for Comparative EconomicStudies (W1IW), Vienna, Austria

Secretariat of the Managing Board, BankAustria, Vienna, and Lecturer at the KarlFranzens University, Graz, and at the Instituteof European Studies, Vienna, Austria

Deputy Director, The Vienna Institute forComparative Economic Studies, (WIIW),Vienna, Austria

Senior Adviser and Head, Foreign ResearchDivision, Austrian National Bank, Vienna,Austria

512

Gabor Hunya

John A. Kennerley

Haruhito Kitamura

Jan Klacek

Norbert Kloten

Elena KohUtikova

Vladimir M. Kollontai

Janos Kornai

Igor Koslr*)

Karel Kouba

Manmohan S. Kumar*)

Ferdinand Lacina

The Vienna Institute for Comparative Economic

Studies (WIIW), Vienna, Austria

Deputy Director, Industry and Technology

Division, United Nations Economic Commission

for Europe, Geneva, Switzerland

Chief Representative, The Mitsubishi Bank, Ltd.,

Vienna Representative Office, Vienna, Austria

Director, Institute of Economics, Czech National

Bank, Prague, Czech Republic

Former President of Landeszentralbank in

Baden-Worttemberg, Stuttgart. and Professor

of Economics at Humboldt University, Berlin.

Germany

Chief Executive Director, Economics Depart­

ment, National Bank of Slovakia, Bratislava.

Slovak Republic

Professor, Institute of World Economics andInternational Affairs (IMEMO), RussianAcademy of Sciences, Moscow, Russia

Professor of Economics. Harvard University,

and Collegium Budapest, Institute for Advanced

Study, Budapest, Hungary

Director, Centre for Strategic Studies of the

Slovak Republic, Bratislava. Slovakia

Professor, Faculty of Social Sciences, CharlesUniversity, Prague, Czech Republic

Research Department. International Monetary

Fund, Washington DC. USA

Austrian Federal Minister of Finance, Vienna,

Austria

*) author, but unable to attend the workshop 513

Michael Landesmann

Jochem Langkau

Kazimierz Laski

Friedrich Levcik

Zdenek Lukas

Egon Matzner

Joze Mencinger

Patrick A. Messerlin

Costea Munteanu

Alexander Nekipelov

Jerzy Osiatynski

Leon Podkaminer

Professor, Johannes Kepler University, Linz,Austria

Deputy Head of the Research Institute, Headof the Department for Economic and SocialResearch, Friedrich-Ebert-Stiftung, Bonn,Germany

Professor, Research Director of The ViennaInstitute for Comparative Economic Studies(WIIW), Vienna, Austria

Professor, Consultant, The Vienna Institute forComparativeEconomicStudies (WIIW),Vienna,Austria

The Vienna Institute for Comparative EconomicStudies (WIIW), Vienna, Austria

Professor of Public Economics and Head ofResearch Unit for Socioeconomics, AustrianAcademy of Sciences, Vienna, Austria

Professor of Economics, EIPF (Institute ofEconomics, Faculty of Law), University ofLjubljana, Slovenia

Professor of Economics, Institut d'EtudesPolitiques de Paris, Paris, France

Associate Professor, Academy for EconomicStudies, Bucharest, Romania

Deputy Director, Institute of InternationalEconomic and Political Studies, RussianAcademy of Sciences, Moscow, Russia

Professor, Member of Parliament, Warsaw,Poland

The Vienna Institute for Comparative EconomicStudies (WIIW), Vienna, Austria

514

Josef POschI

Sandor Richter

Philipp Rieger

Dariusz K. Rosati

Christopher T. Saunders

Monika Schopf

Hans Seidel

Joseph Smolik

Judita Stoura<3ova

Erich W. Streissler

Jolanta Supiriska

Mikl6s Szanyi

Adam TOrOk

The Vienna Institute for Comparative Economic

Studies (WIIW), Vienna, Austria

The Vienna Institute for Comparative Economic

Studies (WIIW), Vienna, Austria

The Vienna Institute for Comparative Economic

Studies (WIIW), Vienna, Austria

Professor, United Nations Economic Commis­

sion for Europe, Division for Economic Analysis

and Projections, Geneva, Switzerland

Visiting Fellow, Science Policy Research Unit,

University of Sussex, UK

The Mitsubishi Bank, Ltd., Vienna Represen­

tative Office, Vienna, Austria

Professor, Austrian Institute of Economic

Research (WIFO), Vienna, Austria

United Nations Economic Commission for

Europe, Division for Economic Analysis and

Projections, Geneva, Switzerland

Managing Director, Centre for Foreign

Economic Relations, Prague, Czech Republic

Professor, Institute of Economics, University of

Vienna, Austria

Professor, Institute of Social Policy, Universityof Warsaw, Poland

Institute for World Economics, Hungarian

Academy of Sciences, Budapest, Hungary

Director, Research Institute of Industrial

Economics, Hungarian Academy of Sciences,

Budapest, and L1COS Institute, Catholic

University of Leuven, Belgium

515

Witold Trzeciakowski

Aleksandar M. Vacic t

Hermine Vidovic

Dragomir Vojnic

G.D.N. Worswick

Professor, Institute of Economics, PolishAcademy of Sciences, Warsaw, Poland

Professor, Director, United Nations EconomicCommission for Europe, Division for EconomicAnalysis and Projections, Geneva, Switzerland

TheVienna Institute forComparative EconomicStudies (WIIW), Vienna, Austria

ProfessorofEconomics, Institute of Economics,University of Zagreb, Croatia

Oxford, UK

516

INDEX

agricultureCAP 203, 209, 210products 19, 250-2restrictions on 6, 11, 205, 206-7, 234trade with EC209,211 -12,227 ,250-2 ,255,

257,260,267,442see also specific countries

aid 136-7,440-5Albania 40, 246, 252n, 254

anti-dumping 6, 220-7, 235·6, 247, 250,256, 260-2, 359

Argentina 208Armenia 122arrears 139,147-51, 155-6,198Asia 113,227,415Austria 111, 210, 366, 485

accelerated depreciation 347-8banks 5, 185, 186, 189, 199n, 348foreign capital 355-6industrial policy 343-4, 356-63inflation 345, 347investment 112, 350-3lessons for Eastern Europe 8-9, 346-7,

350-2, 353, 355, 356-9, 361-3, 365-7nationalised industries 353-5price Iiberalisation 344-5regulating monopolies 352-3subsidies 348-50wages 346

balance of payments 15, 79, 82, 85-7, 90, 97,112,140,412-13

BaIcerowicz, Leszek 370,372Baltic Free Trade Agreement 264banking system 142, 180-1, 311, 318,408-9

and arrears 139,147-51 , 155-6,198credit 5, 138, 139-40, 143-7, 151-62,

197-200reform of 4-5, 123-37, 180, 183, 185-95,

197under Socialism 43, 408

universal banking system 5, 180, 183,185·7, 192-5

see also specific countriesbankruptcy24, 41-2, 118, 119, 158, 195, 289,

292,358,409,41 5,431 -2,462Belarus 222, 256, 342, 438Belgium 185,208,210,327Beveridge, Lord 113Bolivia 208bond market 139, 156-7, 183, 187-8, 193Bosnia-Herzegovina 248, 439, 473, 491Brazil 208, 220, 222Bretton Woods System 84, 85-7, 90Brittan, Sir Leon 224budget

constraints24, 25,41-2 ,54,102 ,116,117,192,193,195,282,283,285,300,308

deficits 19,20,27-8,52,61 ,80,86, 103,111, 119, 397, 406, 409, 412-14, 418-20,442

Bulgaria 75, 165, 166, 171,210banks 155, 191GOP 15, 171, 208privatisation 284, 304-5, 309, 327, 342trade 202, 204-5, 215-16, 217n, 219, 221,

222,247-53, 258n, 266transformational recession 2, 40, 122

bureaucracy 39-41, 60, 110, 282, 283Bush, President George 81business cycle 78-9

Canada 246, 415ncapacity

constraints 103excess 32, 103, 111productive 19,99-100,251 ,310,406utilisation 27,117,118,119-20

capital 23,31,61, 73-4, 79,85,100,117,138,141, 159-61, 18~ 19~ 192dedicated 182, 185-7, 192, 193-5markets45, 48, 100,180-8,193,231 ,282,

284

517

working 138, 139, 140, 143-7, 162, 191-2,198

capitalism 1, 13, 31, 32, 33, 35n, 36, 38-9,93,110,117

Central EuropeanFreeTradeAgreement 235,252n, 253, 264see also specific countries;Visegrad group

centrallyplannedeconomies 1,16,21,49,102,153,243,244-5,396,406

Chile 198, 208, 227China 82, 83, 106, 109,208

Clinton, President Bill 246nCMEA 11, 442, 466

see also Comecontrade 4, 5, 6, 16, 118, 139, 141, 154-5,201,

203n,205,244,261n,263-5,266,318,358,370,468

COCOM (Coordinating Committee on Multi­lateral Export Controls) 247

Colombia 208Comecon 110, 125-6

see also CMEAtrade 31, 53, 415, 429, 456

Common Agricultural Policy 203, 209, 210Commonwealth of Independent States (CIS)

243,246,255,258,261-2,263-5,317,318,

342see also specific countries

competition 21,24,32-3,100,141,142,190,203,207,251,256,260

construction 15,28,41,45,49,51,100,348consumption 15,16,18,20,29,31,37,49-53,

89, 93, 151costs 19, 22, 27, 51, 84, 119-20, 244, 408credit 15, 17,28,43-6, 47n,49, 51,100,190-2,

410allocation 138, 142-3, 154-9, 194banks 138, 139-40, 143-62, 175, 197-200policy 23, 25, 27, 231restrictions 18, 19, 20, 117, 119

CroatiaGOP 1, 490-1, 499-500inflation 12, 490-1, 499-502privatisation 493·7,498, 506, 508-9

518

problems and prospects oftransition 504-8production decline 490-1property rights 493-7stabilisation programme 12, 499·504trade 122, 220, 222, 223,248,473,485transformational recession 2, 490-3unemployment 490-1, 500war damage 12, 491-3, 498, 500, 502, 506,

507current account 15, 20, 22, 27-8, 79, 86, 102,

104, 141Czech Republic 14, 103, 188, 210, 300,

316-17,327,329,341,342,396,438,452-3banks 190, 194n, 452, 453, 462-3decline of economic activity 455-9GOP 15, 208, 458-9inflation 451-4, 463monetary and fiscal policies 452-3, 457prices 451-5private sector 187, 299-300, 451, 460-1production decline 40, 455-7, 459-60, 461stabilisation 451·7trade 6, 202, 204-5, 207, 215-16, 220-2,

232-42,247,249,251-3,258n,264,451,

470transformational recession 2, 115-20, 459unemployment 1, 461, 468-9voucherprivatisatlon 11,23,194,282,291,

299-301, 308, 314, 460-2Czechoslovakia 30,75,99,116,117,122,141 ,

142, 151n, 152, 161n, 165, 166, 171,189,191,236-7,239-40,440,452,466,469

exchange rate system 238-41privatisation 270, 284, 286, 295, 299, 309,

468production decline 459-60trade 220, 222, 223, 224, 232-3, 235-6,

245,249-50see also Czech Republic; Slovak Republic

debt 19,29,30,105,112,153-4,189, 194n,198,229,415,444see also arrears; specific countries

deficit financing 118-19,419

demand 16,17,18-19,33,35,49-50,80,81 ,88,100,103,108,111 ,113,116,119,407

aggregate 18, 20, 27, 37-8, 49, 52, 57,80-1,86,99-100,103, ",, 112, 118,119-20,405-7,415

constraints 34, 36, 110-11domestic 26, 54, 119-20excess 20, 34, 36, 80, 418-19

foreign 119-20macro 32, 33, 34, 46-55management 27, 79, 82-3, 85, 88-90, 97,

113, 115Denmark 208,210, 415ndepress ion (1930s) 15, 30, 80, 83,100,181 ,

490developing countries 136-7,229-30,396,485domestic currency 106, 152, 199

convertibility 21, 22, 85, 232, 236-7, 245,426,429-30,438,467-8,470,502

devaluation 17,19,20,22,55,117,413-14 ,

451-2

East Gennany 75, 103, 107, 219, 250, 431, 434privatisation 275shock-therapy 106-8

East-West trade relations 243-4, 265-7future evolution of Eastern access to

Western markets 257-8problem areas 258-65transfonnation of 244-57

EBRD 136, 438, 449, 509-10economic transformation 13-26, 394-6

and economic growth 26-8, 434-6and privatisation 282-5foreign trade Iiberalisation in 229-42results of 14-16social aspects in Russia 9-10, 382-94social costs in Poland 9-10, 369-80, 396,

427,428,435-7,444ECSC 220-1, 252n, 255Ecuador 208education 25, 57, 61, 360, 377, 385, 433efficiency 6, 41-6,116-17,142,194,282,323,

424, 431

EFTA 88, 91-2, 226

tradewithEasternEurope6 ,202-23,235-6,248-9,252-4 ,257-8, 262n, 264n, 265-7,485

Emerging MarketEconomies Report 1993122employment 15, 17,20,22,42,78,82,84,85,

88,92,96,97,99,112,113,118,138,140,143,198,408

energy 19,25, 79,92,93,318,323,360,502entrepreneurs 43-5, 61, 105, 108, 235, 272,

274,282 ,287,319-20,367,427,436,463,505

environment 14, 320, 323, 353, 360,443,508equity

capital 159-61, 162funds 140markets 138,139,160-1,162,180

Estonia122,246, 249, 252n, 254-5,257-8,264privatisation 317,329,342

Eurofer 220European Community (EC) 325, 344, 351, 353,

414,440n,445,509see also European UnionAssociation Agreements 22,205-12,217,

220, 222, 223, 224-6, 235-6, 248-59,266-7, 438, 442, 444

entry of East European countries 420, 428,442

import quotas 207, 212-21Multi-FibreAgreement (MFA)212-15,251nprotectionism 202, 205, 2", 217, 221-6,

250, 257-63, 267sectoral trade disputes 211-23, 259single currency 91-2trade with Eastern Europe 202-28, 235-6,

244-62, 264n, 265-7, 442, 443-4, 485

unemployment 85, 88, 113EuropeanEconomic Area (EEA)249, 250n

European Monetary System (EMS) 91-2European Payments Union 86, 202European Recovery Programme 348-9, 352European Union 5, 240, 431, 434,438, 439,

469see also European Community

519

Exchange Rate Mechanism (ERM)91-2, 439exchangerates15,17,22,91-2,141,142,247

Bretton Woods System 84, 85-7, 90policies 85-7, 110, 117,231-2

exports 20, 22, 25, 26, 27, 29, 31, 60, 119-20,243,244,444promotion 25, 27,229,230,232,233,350

financial markets 180in Eastern Europe 187·95, 197-8,409in the West 181-7

financial programming 17,405-6financial sector

backwardness of 42-6, 48, 105reform of 4·5, 139, 142, 180

bank credit 5, 138, 139-40, 143-7,151-62, 197-200

banking system 4-5, 123-37, 180, 183,185-95, 197

Finland 204,210,249, 252n, 255, 414, 415nfiscal deficit 117, 141, 151-4,200fiscal policy 17, 20, 22, 25, 27, 33,49, 52, 60,

61, 62, 79-87, 88, 93, 94, 97, 103-4,112·13,119,200,397-9,407,410,420-1

Fisher, Irving 403France 75, 84, 92, 93, 185,208,415

agriculture 210,417industrial policy 360privatisation 270, 278trade 219, 220, 316, 317, 485

free trade 6, 203, 232, 235, 248, 250, 359FTAs 249, 252-8, 262n, 264, 267

Friedman, Milton 88

G-7 countries 246, 248see also specific countries

G-24 countries 243, 246n, 248, 439see also specific countries

GAIT 4,6,54,212,221,224,227·8,232,233,236,245,247-8,250,256,258,262,449

Georgia 222Germany 81,210,219,220,317,344, 415n,

438,485banks 5,360capital markets 182, 185privatisation 7-8, 278, 363

520

reunification 112, 201, 207, 249-50, 439,442

Weimar 58, 61see also East Germany; West Germany

goods, quality of 16, 244, 247, 254Gorbachev, Mikhail 269, 270government

expenditure 18,25,31,47,103,141,151,382,419intervention 357-9, 362-3structures in market economies 359-61

Grant of General System of Preferences(GSP) 248, 251-2, 254n, 255-8

Greece 208,209,210,442

health 25, 57,61,370,377,385Hong Kong 208household saVings50-1, 151-2,172,173,413housing 28, 41, 45, 49, 51,100,374,375-6,

395Hungary 22, 35, 40-1, 58-60, 75-7, 99, 122,

152, 188, 18~ 210, 396agriculture 11, 40, 45, 54, 71, 417bankingsystem43.0,51 ,104-5,126,153-5,

157-8,169,171,175,179,189-92budget constraints 41-2, 54, 61budget deficit 412-14, 418·20bUilding industry 41, 45, 49, 51, 71consumption 49-53, 73debt 55-7, 413-14, 420exports 53-5, 73, 74, 414GOP 14,15,35,47,66,71,73,166,208,

412,416imports 53-5, 73, 413, 415inflation 34-5,55-7,61,83,152,165,413investment 47-9,54,68,412-13,418prices 70, 103private sector 142, 187, 291·3privatisation 270,278,284,286,287,291-9,

305,308, 310n, 313,316-17,329,331,342, 362

production decline 30,36,51 -2,53,66,69,72,111 ,415-16,455-6

role of state 60-2savings 152, 168, 173,413,420

stabilisation policies 10-11,412-21State Property Agency 292-9, 308stock exchange 161, 187-8trade 37, 202, 204-5, 215, 220, 224, 235,

244-53, 258n, 264, 266transformational recession 2, 11, 30-77,

110-11, 115-20, 421unemployment 55, 56, 57, 58-9, 60-1, 67Western aid to 440

hysteresis 406-7

illegal activities 10, 16, 280, 384-5, 390, 391,

505import quotas 6, 207, 212-21, 255nimports 22, 27-8, 34, 60, 86, 88, 97, 102, 110,

229,249,259,350,425quotas 6, 207, 212-21, 255n

income 15, 18, 49, 50, 58distribution 114, 382-5inequality 9, 313, 371-3, 382-5policy 17,82, 88

incremental capital-output ratios (ICORs)102Indonesia 208, 360, 439industrial policy 9, 25-6, 203, 230, 322-5,

356-63, 365, 432-3, 449, 463industrial restructuring 311, 320-5inflation 1,4,9,15,17-19,29,43,44,50,55-7,

59,61,78-9,80,82-7,96,97,101,110,111, 113, 115, 116, 119,120, 140, 141,142, 146-51, 158, 162, 199,407-8,409,414,444and privatisation 272-5oil prices 84, 87-8, 97see also specific countries

inputs 19, 34, 42, 253-4institutions 114, 115, 311, 406

change 21·6, 312framework of stabilisation policies 79-80new 62, 105, 117, 137, 198,283problems of 408-10

interest rates 17, 18, 19, 20-1, 27, 48, 86, 88,89, 140nominal 44, 112,406,409real 20, 44, 104, 112, 199, 409

International Finance Corporation 136

International Monetary Fund (IMF) 15, 85-7,238, 267, 396, 418, 426, 438, 443, 444,449,470,503,509

Intra-European Payments Scheme 97inventories 102, 113, 118, 119, 151n, 458investment15, 16, 18-19, 21, 29, 31, 49, 80-1,

100,102,113,138,139 ,347-8,350-3,409credit and 159-61, 162fixed 47-9foreign direct 8, 27-8,192,232,311,314,315-20,324-42,365 .funds 23-4, 45, 51, 193, 194n, 281, 285,

300,314,315,408,418,461private 20, 27, 54, 444promotion 111-12public 27-8,141 ,323see also specific countries

Ireland 208,210Israel 499Italy 75, 84, 91, 92, 208, 415n

agriculture 210,417privatisation 278trade 219, 220, 485

Japan88,208, 318, 344, 357, 362,414,415industrial policy 100, 360trade 244, 247, 485

Kazakhstan 122, 222, 333Keynesianism 2, 35, 37, 47, 48, 52, 60, 80,

81,89,100,112,120,406,412Korea 100, 208, 360Korean War 94, 95, 96, 415Kyrgyzstan 122, 256

labour 19, 26, 33, 34, 42, 79, 81, 313, 322-4,370

market 100,120,143-4,231,284,322productivity 15-16, 19,20,42,51,344Latin America 12,227,415,505

see also specific countriesLatvia 246, 249, 252n, 254-5, 257-8, 264

privatisation 317,342

521

Lithuania 222,246, 249, 252n, 254-5, 257-8,264,438privatisation 317, 333, 342

living standards 1, 9, 114, 370, 371-3, 375,386,388,395,396,398,490,499

Maastricht Treaty 91-2, 442Macedonia 122, 248, 485

Malaysia 208market access 27,28,256,257-9,324,441market forces 24-5, 93, 95-6, 99, 201, 322,

393, 430Marshall Plan 4, 9, 86, 93, 96-7, 110, 348,

4400,442-3Mexico 208, 360MFN status 244-6, 254n, 255-8Moldova 122monetary overhang 34, 95, 116, 117, 140, 142,

1940, 418-19, 451monetary policy 17, 20-2, 25, 27, 33, 34, 49,

60,62, 79-87, 88, 93, 94, 97, 104-5, 119,158, 199,231 ,397-9,407,410

moneydemand 138,140,143-7, 151,161-2, 198,

407supply 4, 18,35,57,89,397,409-10

Montenegro 473

NAFTA Treaty 360nationalism 18, 26NATO 247Nazis 343, 347Netherlands 185,207,208,210,318,485New Zealand 82nomenklatura 7,189,280,284,366,390-1,450North, Douglas 396Norway 210,249, 252n, 255, 415n

OECD 53, 81, 82, 97,109,267,346,414-15trade 203-6, 266

OEEC 97see also OECO

oil, price of 84, 87-8, 97, 103,345,388OPEC 4, 84, 97

522

output 18, 35, 78-9, 81,82,84,89,97,100,112,408aggregate 138, 139, 143-7, 162decline in 1,99,101-3, 106, 111,115-16,

138-41,154-5, 197, 199-200see also specific countries

over-staffing 1, 9, 16, 467

Pacific Rim countries 415perestnoika 269, 382, 384, 390, 395Philippines 208Po~od14,75,99,122,151n , 152, 188,21~

374,427,455agriculture 11, 422, 425, 449-50balance of payments 425-6banks 154, 155, 156-8,174, 176, 177,178,

189,191,430450budqet deficit 426, 436, 443, 449debt 425-6, 429, 432, 433-4, 437, 439,

440,449external factors 438-9GOP 15,167, 171,208goals and strategies 428-39inflation 152,426-8,429,430,433,435-6,

449output 165, 170prices 103, 372, 426-7, 435-6private sector 142, 187, 287-9, 373, 374,

422-4privatisation 11, 270, 284, 285, 286, 287-91,

297, 308, 314, 316-17, 333, 335, 337,342, 373, 422-4, 428, 430,431-4, 435-7,449,462

production decline 3D, 139, 141,422,434,435

savings 168, 172, 426social costs of transformation 9-10,

369-80,396,427,428,435-7,444stabilisation 11,426-8,429-30,434-7,438stock exchange 160-1, 188, 289trade 202, 204-5, 215·16, 220,222,223-4,

235, 244-53, 258n, 264, 266, 425-6transformational recession 2, 115-20, 426-7,

436

unemployment 372, 373-5, 378, 426-8, 429,431-3, 434-7

Western aid and interests 440-5Portugal 208, 210,442poverty 57, 383prices 14, 19, 21, 22, 32-3, 78-9, 82-5, 94-5,

10~ 103, 119,244,247,408,412administratively set 14, 17Iiberalisation of 17,102,106,110,140, 141 ,

142, 150, 344-5relative 15,37-8,44,83,103, 154-5,387,

395, 406private sector 15, 16, 20, 26, 33, 34, 38, 42,

58,60,61,140,142,151,154,187,231 ,281,308see a/so specific countries

privatisation 6-9, 15,21, 23-4,26,42,48, 100,106, 114,116-17,142,157,159,160-1,180, 187, 188, 189-90, 192, 199,269-70,277, 281-3, 311-13, 366, 424and foreign direct investment 8, 311, 314,

315-20, 324-5, 365and industrial restructuring 320-5and transformation 282-5free distribution 271-4, 366-7of state enterprises 7-8, 15, 21, 42, 48,

281-5, 287-99, 306-10, 313, 320-2,422-3, 431-3

reasons for 283-5sale of assets 285-7, 307-9social consequences in Russia 390-2voucher 7,11 ,23-4, 161n, 193-4,272-9,

281,282,285-7, 308, 314, 315see a/so specific countries

production capacities 19,251,310,406production decline 18, 22, 30-1, 46, 111, 114

see a/so specific countriesproduction, transformation of real structure of

37-9profits20,42,44,112, 141, 144, 151n, 154-5,

157, 199,283property rights 21,116-17,269-71,286,311 ,

323,362 ,366,396,409,431,493-7,505-7,509see a/so privatisation

protectionism6, 22, 54, 60, 100, 202, 205, 211 ,217,221-46,229,232,233 ,236 ,244,250,257-63,267,429,444

public expenditure 18,25,31,47,103,141 ,151,382,419

public investment 27-8, 141 , 323

quantitative restrictions 22, 97, 205-7, 217n,244-6, 256, 266

raw materials 19, 323, 343Reagan, President Ronald 81

Reaganomics 112recession 3, 18-19,20,22,24-5,26,28,31,

54,85,88,97,225,420,442transformational 1-3,30-77 ,99,102, 107,

115-20, 251, 405-7, 414, 444, 477,490-3

researchanddevelopment 25,319 ,323,352,412-13,433

resources 33, 34, 113, 323, 406Reykowski, Janusz 378-9Romania 2, 122,155,156,171 ,210

banks 190-1GOP 15, 167, 208output 165privatisalion 286,301-4,308-9,316,337,

342trade 202, 204-5, 215-16, 217n, 219, 221,

222, 224, 244-7, 248n, 249-53, 258n,284

Rus~a 75,438,439,445agriculture 277, 285banking system 4-5, 123-37, 153n, 155,

156,197,198,307,389,400,409debt 426exchange rate 126, 130fiscal policy 397-9, 405GOP 15, 398, 402-5income inequality 382-5inflation 10, 131, 141, 147n, 271, 272-5,

307, 365, 383, 387, 397, 403-5investment 133-4, 136-7monetary policy 10,397-9,405money 399-405, 409

523

output 147n, 404-5prices 386-9, 397, 399-405private sector 123, 124, 132, 392privatisation 7, 270-80, 284, 286, 306-7,

316-17,337,339,342,365,390-2social aspects of economic reform 9-10,

382-94social stratification 386, 392-4trade 202-3, 222, 247n, 255-8, 262, 264,

265

savings 20, 49, 119, 185-6, 193household 50-1,151 -2,172,173,413

securities markets 142-3, 186, 188-9, 193Serbia 473, 491service industries 15, 38, 103shock-therapy 3, 6, 9, 11, 18, 22, 30,106-8,

430-1, 455-6, 463, 505, 508shortage economy 15, 16, 33, 34, 35, 36,

418-19,466Singapore 208, 360Single Market 203n, 213Slovak Republic 14, 210, 239, 240,438,457

banks 190, 194n, 469-70economic reform 12, 467-71GOP 15, 208goals of new republic 469-71legacy of the past 466-7prices 467, 468, 470private sector 187privatisation 194,282 ,308,314,317,329,

339, 342, 467·8, 471production decline 30, 459-60stock exchange 188trade 6, 202, 204-5, 207, 215, 220-1, 222,

233,235,241,247,249,251-3,258n,264

transformational recession 2, 115·20unemployment 468-9

Slovenia 122,246,248,254,257-8,264,488,489balance of payments 486debt 487decline in economic activity 472-7economic policy 477-80, 482-3

524

foreign trade 473, 476, 477n, 479-80, 483,484-5

inflation 474-6, 479-80privatisation 117, 286, 339, 342, 476, 480-2,

483,509stabilisation 12, 472-7, 480stock exchange 188transformational recession 2, 115-20, 477unemployment 472, 473-4

social aspects of economic reform In Russia9-10, 382-94

social costs of transformation in Poland 9-10,369-80, 396, 427, 428, 435-7, 444

social security 9-10,151,321·2,323-4,382,385-8,392-3,395,396,427,444,449

social unrest 18, 274·5, 280, 390, 394,407,435,439,442,443,445,506,509

socialism 14,16,33,34,37-8,43,47,92, 115,117,230,269,286,386,407

Solidarity 9, 372, 378-80, 422, 428, 429, 441South Africa 222Soviet Union 135,269-71,387,390

banks 124, 125, 130, 133collapse of 439, 441-2debt 125social security 392·3, 395successor states of 43, 115, 141,202-3,

219,221,222,238,243,265,284,398,

438trade 31, 53, 111, 245, 246, 247, 249·50,

260,265,485see also Commonwealth of Independent

States; specific countriesSpain 75, 208, 210, 223, 442stabilisation policies 3-4,10-11,13-17,20,99,

101-2, 112, 114, 117, 142-3, 188, 194n,283-4,412·21,441 ,444and economic growth 26-8in the West 78-98, 109-10, 114-15,414-15institutional and systemicchange 21-6, 110,

112instruments of 16-21role of fiscal policy in 112-13role of the West in Eastern Europe 26-8see also specific countries