From the ruble zone to the euro zone: the political economy of Estonian macroeconomic policy

This article analyzes Estonian macroeconomic policy since the country regained independence in 1991. Estonia was the first post-communist country to introduce a currency board in 1992, and consecutive governments have systematically prioritized macroeconomic stability and fiscal prudence. Estonia implemented an internal devaluation in 2008–2009, which enabled it to become the first post-Soviet republic to adopt the euro in 2011. This article explores the origins of the currency board and shows how institutions, interests, and ideas have contributed to Estonian exceptionalism in macroeconomic policy and to euro adoption. It demonstrates that the Estonian experience can shed light on the political prerequisites of internal devaluations, which may be of great relevance both to current and future Central and Eastern European euro area members.     

Legislatures of Small States: A Comparative Study

This article, drawing upon a quantitative survey of over 80 parliamentarians, as well as website surveys combined with qualitative interviews, explores the degree of usage of Information and Communication Technologies (ICTs) by Swedish parliamentarians. It also begins to consider any implications for party organisations and parliamentary authorities. The authors suggest that, by 2005, Swedish MPs were becoming ‘electronic parliamentarians’ and that this, combined with the growing usage of political blogs, places increasing demands upon party organisations and the Riksdag to consider the broader management and accountability issues of greater ICT usage by individual MPs. The authors argue that there is a pressing requirement for further research on these organisational and institutional dimensions by scholars of legislative studies, particularly, given the developments in ICT-advanced political systems, like Sweden.     

A threat to Europe? Middle east ties with the Balkans and their impact upon terrorist activity throughout the region

The internecine warfare in the former Yugoslavia has radicalised many Islamic movements in the region and facilitated close links between local Balkan groups and Middle East states as well as terrorist organisations. This article examines the spread of militant Islamic fundamentalism in the Balkans as well as in Kosovo, Macedonia, Bulgaria, Turkey, and Albania. The scope of linkages between Balkan Islamic movements and Iran pose serious concern for Western governments as a long‐term threat to any stability and democratisation in the Balkan region as it has intensified illegal activity throughout the area and heightened irredentist claims.     

Hizbollah's command leadership: Its structure,decision‐making and relationship with Iranian clergy and institution

Any analysis of the behaviour of the pro‐Iranian Hizbollah organisation in Lebanon requires both an understanding of the movement itself, in terms of its decision‐making apparatus and internal clerical factionalism, and the mechanisms of its institutionalised relationship with Iran and, to a lesser extent, Syria through military and civilian channels at work within Lebanon. This article argues that Hizbollah's behaviour is principally governed by the depth and allegiance of closely forged relationships between individual Hizbollah leaders and Iranian clergy as well as the adaptability of a particular Hizbollah leader to suit the movement's activity to specific requirements within Lebanon and in the region. As such, clerical factionalism within Hizbollah can be monitored by the ascendancy or demotion of clergymen over the leadership and is also a guide to the direction of the movement in Lebanon as well as to the affiliation and loyalty of Hizbollah's leadership with clerical factions and institutions in Iran.     

Varieties of capitalism and the Estonian economy: Institutions,growth and crisis in a liberal market economy

This article examines Estonia's economic institutions, performance and vulnerability to the global economic crisis in the context of the varieties of capitalism framework. It shows that Estonia shares many characteristics of a liberal market economy, but that there are also some features which do not fit the classical model, notably its corporate governance institutions. It also suggests that the varieties of capitalism framework can account for key features of Estonia's economic performance, including its growth trajectory and adjustment to the global financial crisis. The article also reflects on the broader significance of these findings for understanding post-communist capitalism.     

Employee recognition: a key to motivation

Productivity--why it's low and how to enhance it--is on everyone's mind these days. A major component of productivity is employee satisfaction. If an employee is dissatisfied, feels unappreciated or under-compensated, that employee will not perform to the best of his or her ability. How is the personnel administrator to address this pressing problem? One answer that emerges is employee recognition programs. In many cases, properly run recognition programs can boost awareness of the organization, build employee pride, raise morale and, ultimately, increase productivity. As some of our respondents observed, higher salary is not the best answer. While a larger paycheck is always appreciated, everyone's pride is boosted by a public demonstration of appreciation.     

A new framework for testing the effect of government spending on growth and productivity

Does government spending have a positive or negative effect on economic growth? The results of earlier empirical studies give mixed results. In this study we suggest a new method for testing the effect of different kinds of government expenditure on productivity growth in the private sector. The focus on productivity in the private sector and the use of disaggregated data makes it possible to avoid or mitigate a number of methodological problems. The major conclusions, which are quite robust, are that government transfers, consumption and total outlays have consistently negative effects, while educational expenditure has a positive effect, and government investment has no effect on private productivity growth. The impact is also found to work solely through total factor productivity and not via the marginal productivity of labor and capital.