The logic and pathologies of local and regional economic development strategies

State and local economic development programs are often loaded with tax incentive and promises of deregulation designed to attract new businesses, encourage expansions, and cultivate new firms. There is little evidence that tax relief and deregulation are effective tools for economic development, however. This article examines the logic of public sector participation in economic development, questions the effectives of typical development policies, and suggests alternatives, including tax-base sharing, greater regional cooperation, and human capital development.     

Crucial relationship between the privatized sector and the generic private sector in post-communist privatization: Determinants of economic performance

This article looks at the issue — largely neglected in the transition literature — of the relative weights of the privatized sector and the generic private sector (of de novo private firms) in the emerging private sector of post-communist economies in transition. The present writer posits that the relative weight of each in the aggregate share of a private sector (generally expanding over time as transition progresses) strongly influences economic performance, both during correctional recession and during recovery and expansion period. Another, interrelated issue considered here is the interaction between the evolving institutional framework and the expansion of the generic private sector, that is the most dynamic one in the transition economy. It is true that the interaction between institutions and performance has been a staple of a very large number of books, articles, and papers.However, this article concentrates on one component of a private sector only, that is the generic private sector. But at the same time it looks beyond the ‘Holy Trinity’ of transition (stabilization, liberalization, and privatization) towards a wider institutional framework of political liberty, law and order. The foregoing wider framework, and the emerging general trust, matters as much — if not more — for the present writer as the standard transition program.It is the relative dynamics of both components of the private sector, affected by both standard transition programs and the above-mentioned wider institutional framework, that is of primary importance for the economic performance in post-communist transition. In the last part of the article I will try also to answer, tentatively, the question under which circumstances the wider institutional framework may emerge in the transition process.     

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).     

The misuses of manipulation: The failure of transitional justice in post-communist Hungary

Hungary, like most countries in the former Soviet bloc, made numerous attempts to carry out various types of transitional justice, but the process was ultimately unsuccessful. This article argues that transitional justice in Hungary has been used primarily for political manipulation and introduces the main types of such manipulation. A discussion of the two main components of Hungarian transitional justice, retroactive criminal legislation and screening based on secret police files, illustrates the failure of this process. The article concludes by offering some tentative explanations for this failure, finding it in the sharp ideological division within the political elite and in the population's indifference towards issues of transitional justice.     

Russia's Response to Crisis: The Paradox of Success

Russia's recovery from the deep economic crisis it experienced in 2008–2009 did not deliver clear political dividends for the Russian leadership. This is because of the context in which the crisis occurred and the way that the leadership, particularly President Medvedev, and many of its critics described the crisis. The oil-fuelled boom that preceded the crisis had the effect of deepening it. Economic recovery based on rising energy prices looks like a failure, rather than a success, and highlights the underlying structural problems of the Russian economy. Arguments about the need for modernisation from within government exacerbated this perception. This seems to have weakened the connection between approval for the leadership and economic growth, a staple of pre-crisis politics.     

The construction of Orthodox churches in post-communist Romania

Against the background of church – state relations in contemporary Romania, this article explores the question of the construction of places of worship by the Romanian Orthodox Church after 1989. Besides providing and analysing general figures, it focuses on the proliferation of Orthodox churches in state-owned and state-operated institutions, and on the issue of funding. It also offers an examination of relevant legislation and its implications on church construction.     

Extricating the state: The move to competitive capture in post-communist Bulgaria

This article uses the Bulgarian case to analyse movement from a situation of what appeared to be a ‘Partial-Reform Equilibrium’ to an ‘Equilibrium of Competitive Capture’. In such a process, elections are important forces for change, but not because they bring reformist parties to power or lead to completed economic liberalisation. Instead, especially in the first several electoral cycles in a new democracy, they can bring to power new leaders who are not beholden to existing captors, but rather to other clients that would like to capture the state for their own interests. Over time, the country experiences a parade of captors, eventually leading to a system where no single group owns the state, but where it is still not insulated. Instead, several competing groups fight with each other to raid it for their own benefits.     

The Politics of Dominant Party Formation: United Russia and Russia's Governors

This article analyses the emergence of United Russia (Edinaya Rossiya) as a dominant party by examining the behaviour of Russia's governors. Using original data on when governors joined United Russia, the article demonstrates that those governors with access to autonomous political resources were more reluctant to join the dominant party. By showing that Russian elite members made their affiliation decisions on the basis of calculations about their own political resources rather than simply being coerced by the Kremlin, this article provides evidence for a theory of dominant party formation that casts the problem as a two-sided commitment problem between leaders and elites.     

Legal change in post-communist states: Contradictions and explanations. Introduction

Reformers had high hopes that the end of communism in Eastern Europe and the former Soviet Union would lead to significant improvements in legal institutions and the role of law in public administration. However, the cumulative experience of 25 years of legal change since communism has been mixed, marked by achievements and failures, advances and moves backward. This special issue of the journal Communist and Post-Communist Studies documents the nuances of this process and starts the process of explaining them. This introductory essay draws on the findings of the articles in this issue to explore the impact of three potential explanatory factors: regime type, international influences, and legal (or political) culture. Regime type matters, but allows for considerable variation within authoritarian and democratic states alike and the possibility of reversals. The influence of international organizations (like the European Union) is also far from predictable, especially once states have joined the organization. Finally, legal cultures and political traditions play a large role in explaining developments in individual countries, but there is nothing inevitable about their impact.     

Inequality,democracy and taxation: Lessons from the post-communist transition

Using data for the period 1989 – 2002, we examine the determinants of income inequality in post-communist economies. We find a strong positive association between equality and tax collection but note that this relationship is significantly stronger under authoritarian regimes than under democracies. We also discover that countries introducing sustainable democratic institutions early are characterised by lower inequality. We also confirm that education fosters equality and find that larger countries are prone to higher levels of inequality.     

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     

Media corruption and issues of journalistic and institutional integrity in post-communist countries: The case of Bulgaria

From a normative standpoint the media are usually seen as one of the pillars of a national integrity system, entrusted with the tasks of exposing and preventing acts of corruption and educating the public of the harm caused by corruption. Nevertheless, corruption continues to be one of the most significant challenges that Europe faces, undermining citizens' trust in democratic institutions and weakening the accountability of political leadership. Evidence suggests that in fragile EU democracies such as Bulgaria, despite more than eight years of full membership and numerous preventive measures, corruption is rife and the press is hardly capable of exposing abuses of power or authority. On the contrary - drawing on in-depth interviews with 35 Bulgarian journalists - this paper argues that since communism collapsed in the late 1980s the media in post-communist societies such as Bulgaria has gradually become an instrument to promote and defend private vested interests, and is plagued by corruption. Senior journalists and editors cast serious doubt over the ability of the post-communist free press and journalism to act as a watchdog for society.     

The malleable homo sovieticus: transnational entrepreneurs in post-communist East Central Europe

This paper investigates the coping strategies of post-1989 East Central European transnational migrant entrepreneurs. Paradoxically, rather than facilitating transfer into the region of liberal-democratic orientations and practices, the incorporation of East Central Europe into late 20th-century consumer capitalism based on short-cycle flexible production in sectors unregulated by legal-institutional frameworks reproduces some of the features of the accustomed homo sovieticus syndrome: in particular, the reliance on the beat-the-system/bend-the-rules orientation on informal/crony patronage and connections, and immediate consumption rather than deferred gratification/investment-oriented capital accumulation renders effective strategies of economic action in the new situation. The effects of so-informed transnational migrant entrepreneurs' activities on the transformation processes in their home-countries are also discussed.     

The role of committee systems in post-communist legislatures: a case study of the Lithuanian Seimas

European parliamentary committee systems play an important role in organising the work of legislatures so as to assure the parliamentary leadership of its agenda. At the same time, the strategic positioning of committees in the legislative process provides opportunities for chairs to potentially undo the will of the leadership. We consider the degree to which committees in the Lithuanian legislature serve the private interests of legislators or those of the parliamentary leadership. We argue that while committees most often assist the leadership in obtaining preferred legislative outcomes, chairs on occasion have been able to change proposals or even frustrate the parliamentary leadership of governing coalitions.     

Fighting corruption in public procurement in post-communist states: Obstacles and solutions

Anti-corruption efforts in Europe’s post-communist states have been less successful than anticipated. Criticism has been raised against the role of the international community in promoting anti-corruption programmes. Besides, such programmes have been deemed vague and “all-inclusive”. They have largely failed to address local factors “informing” corrupt behaviour in post-communist states, such as (a) negative perceptions of law, and (b) informal practice.‘ I'd be grateful if you could retain the original sentence as it is more precise.     

The historical foundations of party politics in post-communist East Central Europe

This article gauges how plausible deep historical explanations are in accounting for the emergence of particular types of parties in post-communist Poland, Hungary, and the Czech Republic. Generating and testing hypotheses from the centuries-long historical logic of Lipset and Rokkan's model of cleavage and party development, it finds that the historical foundations of post-communist parties may be deeper than most analyses assume and that the influence of the communist era may be less than is often believed. While a full understanding of the emergence of post-communist party types requires both historical and non-historical explanations, historical ones should not be underestimated.