International assistance and democracy: Assessing efforts to assist post-communist development

This article surveys political development frameworks for analyzing the post-Communist transition to political democracy. Parallels with postcolonial events in Third World countries should caution against overoptimism about the prospects for mutually reinforcing economic and political development. In general, the study of Third World political development suggest that rapid regime transition with low mass participation is unlikely to result in sustainable democratic politics, especially where severe economic dislocations are present. High rates of participation during regime change may lead to rapid disillusionment with the performance of postrevolutionary government. It is thus argued that states wishing, for various reasons, to assist in smoothing the transition from communism should pay heed to the cautionary experience of Third World development assistance and monitor the political dimensions of the transformation, such as the stability of coalition governments, electoral turnout, ethnonationalism, as well as the orthodox economic indicators like inflation and rates of domestic investment. With respect to international assistance to the former Communist countries of Eastern and Central Europe, the article shows that the capacity of the Group of Twenty Four (G-24) donors to aid economic recovery is well below what is requested, or needed. Despite hosting a donor summit, the United States is taking a far less prominent role in the post-Cold War donor community than was the case in the analogous program for post-World War II recovery. This is having an impact on both volume and coordination of assistance. Finally, a strong, possibly ideological, preference among donors for finding private sector recipients for the bulk of assistance may erode the capacity of the post-Communist states to provide both infrastructure and political stability needed for investor confidence. Those making decisions about levels and modes of Western assistance should look beyond economic indicators of privatization as criteria for continued support and retain, where possible, political development objectives in both financial and project assistance. While we must not assume that the record of supporting democracy in Central and Eastern Europe will prove to be any better than in many Third World regimes, the greater security salience of Eastern Europe’s stability adds urgency to the task of applying political development lessons to the post-Communist experience. Malcolm J. Grieve specializes in political development and international political economy and in his current research is exploring the connections between the two fields with regard to analysis of the post-Communist transition. Recent publications include “Economic Imperialism”, in D. Haglund and M. Hawes, eds.,World Politics: Power, Interdependence and Dependence (Harcourt Brace Jovanovich, 1990) and “Debt and Imperialism: Perspectives on the Debt Crisis,” in S. Riley ed.,The politics of global debt (Macmillan 1993). ...in Central and eastern Europe, we are seeking to demonstrate in practice the idea that free government can mean good and stable government, and that free enterprise can mean economic opportunity for all.U.S. Deputy Secretary of State, Lawrence S. Eagleburger, 27 February 1991. There is nothing more difficult to arrange, more doubtful of success, and more dangerous to carry through, than to initiate a new order of things.Machiavelli, The Prince     

The transition from limited access orders to open access orders in the post-communist Europe

This paper attempts to explain the process of institutional transition of post-communist countries applying conceptual framework proposed by D.C. North, J. J. Wallis, and B. R. Weingast. The first part of the article is devoted to outline the theory of North, Weingast, and Wallis. The second part the theory is used to analyze transformation processes in post-communist countries. An important conclusion of this paper is that cultural, religious and historical factors have crucial impact on formation of new coalitions of elites in the transitions countries. In the countries where Western values were present the transfer of the market and democratic formal institutions was easier. Also, the process of transformation was strongly influenced by external factors, especially the prospect of integration with the European Union, which encouraged elites to take action that benefited the opening of both political and economic markets. These observations suggest that, in general, the success of transformation in transition countries did not depend on the intentional actions of ruling elites.     

Communist regimes,legitimacy and the transition to democracy in Eastern Europe

The purpose of this article is to clarify the relationship between forms of political legitimacy employed by communist regimes in East and Central Europe and subsequent models of revolutionary change in 1989. The conceptual basis of the analysis lies in Max Weber's theoretical framework of legitimacy. The four cases selected for comparison are Bulgaria, Hungary, Poland and Romania. The attempts of de-Stalinization and reformation of these party-state regimes through the introduction of paternalistic and also more goal-oriented measures could not prevent their disintegration in the 1980s and their subsequent collapse in 1989. But, I argue, it was the withdrawal of ideological support by elites that ultimately brought communism to an end. The differences in revolutionary scenarios and transitions to democracy in the four cases indicate the importance of a shift in both rulers and masses towards interest in dialogue and compromise. Hungary and Poland represent the clearest scenarios in which communist parties acted as agents of regime change in a rational-legal direction. The Bulgarian case stands as an intermediary case between these two and Romania. Finally, Romania represents an extreme case of violent revolution and the overthrow of a traditionalist and sultanistic regime and illustrates the difficulties following a complete collapse of political authority.     

Why was democracy lost in Russia's regions? Lessons from Nizhnii Novgorod

The phenomenon of crony capitalism has been explored primarily with reference to its impact on economic growth. This study investigates the political implications of crony capitalism and, specifically, the interaction between political competition and crony capitalism. Based on a case study of a political trajectory in one of the regions of the Russian Federation, I argue that under crony capitalism political competition can undermine the legitimacy of state authorities and such democratic institution as the electoral mechanism. Played out in public during the electoral campaigns unrestricted political competition uncovers the predatory nature of crony elites engaged in struggle for power and wealth and increases public perceptions of corruption.     

Law,democracy and the fulfilment of socioeconomic rights: insights from Indonesia

In recent years a debate has emerged about the conditions under which justiciable legal frameworks facilitate the fulfilment of socioeconomic rights. This debate has pitted institutionalist perspectives that emphasise the progressive potential of democratisation against structuralist perspectives that emphasise the constraints imposed by relationships of power and interest. This paper considers the debate in light of Indonesia’s recent experience. It suggests that we need to examine how institutional and structural factors interact within particular contexts to shape socioeconomic rights fulfilment, not examine these factors in isolation. It also considers the strategic implications of this argument for rights proponents.     

Inflation targeting at the crossroads: Evidence from post-communist economies during the crisis

The objective of this paper is to assess if inflation targeting post-communist economies performed better, in terms of output growth, during the crisis than their non-inflation targeting counterparts. The paper also puts the issue in the context of the preconditions of inflation targeters to adopt this regime. 26 post-communist economies of Central and Eastern Europe and the Commonwealth of Independent States are analyzed during the ongoing economic crisis. Results suggest that inflation targeters of those countries performed worse than non-inflation targeters. The growth decline in inflation targeters post-communist economies has been estimated to be deeper by about four percentage points than that in non-inflation targeters. The study finds very limited role of the preconditions for growth decline. Only the lower amount of monetary financing of the budget may have contributed in inflation-targeting countries to have gone through the crisis better.     

Overcoming the past: De-communization and reconstruction of post-communist societies

In several of the central and eastern European nations, the fall of Communism has initiated a new round of political intolerance that threatens to destroy the foundations of their fragile democratic regimes. Campaigns of lustration (political “cleansing”) have imposed ideological tests for employment and political participation in the Balkan countries and in parts of the former Soviet Union. The small, poor nation of Albania has been especially seriously impacted by this atmosphere of vengeacean against ex-Communists and their families. Justified by the principles of destructive entitlement—reminiscent of ancient cultural rituals of blood retribution—journalists have been arrested, members of the opposition have been imprisoned, and University programs have been suspended. In response to Albania’s plight, and to a similar pattern of civil rights abuses in neighboring countries, social scientists have begun to analyze the powerful role played by the “past-in-the-present” in current reconstruction efforts. As Jurgen Habermas, Adam Michnik, Seymour Martins Lipset, and others have noted, a new “culture of forgiveness” may well be a necessary condition for the development of stable and authentic democratic societies in the region. Fatos Tarifa is currently at the Department of Sociology, University of North Carolina at Chapel Hill. He received his Ph.D. in Political Science from the University of Tirana in 1985. He is director of the New Sociological Research Center (NSRC) in Tirana, Albania, and is the author of several books and journal articles, including a 1991 bookIn Search of the Sociological Fact (published in Albanian). Jay Weinstein is a professor of sociology at Eastern Michigan University. He has travelled widely in the Third World and in Central and Eastern Europe. Author of numerous books, journal articles, and chapters, he is currently working on a volume entitledSocial and Cultural Change: Social Science for a Dynamic World (forthcoming in 1997 by Allyn & Bacon Publishers).     

Entrepreneurs,expectations and business expansion: Lessons from Lithuania

This article applies a multinomial logit estimator to investigate which factors affect SME owners' expectations to grow their businesses in Lithuania. Our findings provide evidence that SME owners' human capital (education) matters and that growth expectations are positively related to exporting. In addition, we analyse the link between the perceptions of business constraints and growth expectations and find that the factors, which are perceived as main business barriers, are not necessarily those which are associated with reduced growth expectations. However, perceptions of corruption seem to affect growth expectations the most.     

One step forward,two steps back: women in the post-communist states

The role and status of women in the post-communist countries has been and continues to be varied and full of contradictions. This article discusses the historical, social, economic, and political dynamics affecting the lives of women during the transition from communism to democracy. It argues that democracy, rather than diminishing gender discrimination, has widened the gender gap through declines in women's political representation and increases in women's unemployment and underemployment. Recently, however, the proliferation of women's organizations and the growth of women's studies programs suggests a more optimistic outlook for the future.     

Trust,confidence and social environment in post-communist societies

This paper looks at trust and confidence in people and institutions in eight of the countries that have undergone transformation since the breakup of the Soviet Union. While the questions are not identical to those asked in previous research in post-Soviet societies, our findings are comparable—greatest trust in relatives and friends, less in people in general and least in politicians and institutions of social control. Levels of trust are not high, and there are interesting differences between the countries, giving support to the view that trust and confidence are eroded by sudden and dramatic negatively perceived change.     

Crime, organised crime and corruption in post-communist Europe and the CIS

This article examines the incomplete and sometimes contradictory evidence on the crime, organised crime and corruption situations in post-communist states, and then seeks to explain the apparent increase in all three in early post-communism. Among the factors considered are the impact of weak states and economies, neo-liberalism, globalisation, Schengen and Fortress Europe, the Communist legacy (the ‘ghost from the past’), and collusion. The article then examines the dynamics of criminality and malfeasance in the region, and provides evidence to suggest that the crime and corruption situation has stabilised or even improved in most post-communist countries in recent times. The factors considered for explaining this apparent improvement are the role of external agents (notably the EU), the move from transition to consolidation, and the role of political will.     

Remittances,Poverty, Inequality and Welfare: Evidence from the Central Plateau of Burkina Faso

This paper applies Gini and concentration coefficient decomposition as well as the Foster-Greer-Thorbecke poverty index and the Stark-Yitzhaki welfare index to new data from four villages in Burkina Faso, to compare the marginal effects of remittances from intercontinental and intra-African migration on inequality, poverty and social welfare. Evidence is found that intra-African remittances reduce inequality while intercontinental remittances have the opposite effect. Also, it is found that although remittances from intercontinental migration are associated with much lower incidence, depth and severity of poverty, the marginal impact of remittances from this form of migration on social welfare is limited because recipients do not include the rural poor.     

Third World studies,development studies and post-communist studies: Definitions,distance and dynamism

The collapse of state socialism in the USSR and Eastern Europe in the late 1980s and early 1990s has had contrary impacts on Third World studies and development studies. On the one hand, the disintegration of the former Soviet bloc has made the spirit of 'non-alignment' of the Third World no longer relevant. On the other hand, the nature of post-communist transformation has led many scholars to study transition in terms of development. This article will examine the recent trend of decline in Third World studies and the penetration of development studies into post-communist studies. It will argue that the employment of development perspectives in transitology will widen our field of vision of post-communist transformation.     

Wealth Inequality,Educational Environment and School Enrolment: Evidence from Mexico

Using data from the extended section of the 2010 Mexican census (2.9 million households), we study how school enrolment is associated with wealth inequality and with the educational environment the child is exposed to at the household and municipal levels. We provide robust evidence of wealth inequality as a negative predictor of school enrolment for children in primary, secondary and high school age ranges while a positive role is played by the educational environment. Through the introduction of interaction terms, we account for how economic and educational variables are intertwined at both the household and the municipal level, and we are able to illustrate the considerable heterogeneity in the role of adult education for households at different standards of living.     

Taxation,Political Accountability and Foreign Aid: Lessons from Somaliland

For years, studies of state formation in early and medieval Europe have argued that the modern, representative state emerged as the result of negotiations between autocratic governments in need of tax revenues and citizens who were only willing to consent to taxation in exchange for greater government accountability. This article presents evidence that similar dynamics shaped the formation of Somaliland's democratic government. In particular, it shows that government dependency on local tax revenues – which resulted from its ineligibility for foreign assistance – provided those outside the government with the leverage needed to force the development of inclusive, representative and accountable political institutions.