Big business in Belarus - its genesis, conditions and prospects. OSW Commentary No. 113, 2013-09-09

Over the past ten to twenty years, Belarus has seen a steep rise in the number of local dollar millionaires. This has somewhat undermined the myth of an egalitarian model of society promoted through the Belarusian state propaganda. There is a small group of businessmen among the top earners who, in exchange for their political loyalty and their consent to share profits with those in power, have enjoyed a number of privileges that allow them to safely conduct business in an environment typically hostile to private enterprise. The favourable conditions under which they are operating have enabled them not only to accumulate substantial capital, but also to invest it abroad. However, since such businesses are seen as providing a financial safety net for the regime, in 2011 and 2012 some of their directors received an EU travel ban, while their companies were subjected to economic sanctions by Brussels. At the same time, fearing that Belarus’s big business could become powerful enough to influence the country’s political scene (as has been the case in Russia and Ukraine), Alexander Lukashenka has actively prevented such players from becoming too independent. Consequently, Belarus has so far not developed its own elite class of oligarchs who would be able to actively influence government policy. The current informal agreement between the government in Minsk and big business has proved stable and is unlikely to change in the near future. Nonetheless, a reordering of state power giving Belarus’s big business significant political influence would be possible should Mr Lukashenka lose power in the next presidential election.

A Legal and Economic Assessment of European Takeover Regulation. CEPS Paperbacks. December 2012

Takeovers are one-off events, altering control and strategy within an organisation. But the chances of becoming the target of a bid, even where remote, daily influence corporate decision-making. Takeover rules are therefore central to company law and the balance of power among managers, shareholders and stakeholders alike. This study analyses the corporate governance drivers underpinning takeover bid regulations and assesses the implementation of the EU Directive on takeover bids and compares it with the legal framework of nine other major jurisdictions, including the US. It finds that similar rules have different effects depending on company-level and country-level characteristics and considers the use of modular legislation and optional provisions to cater for them.

Helpless and lonely: Turkey's attitude towards the war in Syria. OSW Commentary No. 136, 09.05.2014

The conflict in Syria, which has lasted since 2011, has become the most significant test of the efficiency of Turkey’s foreign policy and the biggest challenge to Turkey’s security in recent decades. The lack of a clear prospect of an end to the war does not allow us to come to a final conclusion regarding the Syrian civil war’s importance for Turkey. However, it can be said today that with the exception of the initial phase of the conflict, Ankara’s influence over the course of events in Syria has been limited, and the war itself is evolving in a direction that is unfavourable for Turkey: the hostile regime of Bashar al-Assad is still in power, the opposition has proved to be an unreliable or even a dangerous ally, and in northern Syria militant jihadist groups and Kurds are gaining importance. It is also quite unlikely that the West will take any greater responsibility for stabilising the situation in the region. In response to such an unfortunate situation, and out of fear of risking deeper involvement in the conflict, during the past year Turkey’s policy towards Syria has been restrained, reactive and focused mainly on defending Turkey’s territory. However, this policy offers no security guarantees and does not prevent the country’s regional position from weakening, especially in the context of the reinforcement of the jihadist militants and the Kurdish autonomy in northern Syria. The arguments for Turkey continuing its defensive policy are strong: the country fears the possible results of an open confrontation with Assad’s forces; most probably it could not count on support for such actions from within its own society or its Western allies. It also does not have enough acceptance within the anti-Assad opposition circles. On the other hand, though, the risk of uncontrolled development of events is still present; the risk of confrontations with armed jihadist militants is growing; and the potential operation of Turkish forces, either against the jihadists or against Assad’s army, could be considered as a method of diverting attention from the political problems with which the AKP government has been struggling at home.

Mixed Public-Private Enterprises in Europe: Economic Theory and an Empirical Analysis of Italian Water Utilities. Bruges European Economic Research (BEER) Papers 4/July 2006

Mixed enterprises, which are entities jointly owned by the public and private sector, are spreading all over Europe in local utilities. Well aware that in the vast majority of cases the preference of local authorities towards such governance structure is determined by practical reasons rather than by the ambition to implement new regulatory designs (an alternative to the typical “external” regulation), our purpose is to confer some scientific value to this phenomenon which has not been sufficiently investigated in the economic literature. This paper aims at proposing an economic analysis of mixed enterprises, especially of the specific configuration in which the public partner acts as controller and the private one (or “industrial” partner) as service provider. We suggest that the public service concession to mixed enterprises could embody, under certain conditions, a noteworthy substitute to the traditional public provision and the concession to totally private enterprises, as it can push regulated operators to outperform and limit the risk of private opportunism. The starting point of the entire analysis is that ownership allows the (public) owner to gather more information about the actual management of the firm, according to property rights theory. Following this stream of research, we conclude that under certain conditions mixed enterprises could significantly reduce asymmetric information between regulators and regulated firms by implementing a sort of “internal” regulation. With more information, in effect, the public authority (as owner/controller of the regulated firm, but also as member of the regulatory agency) can stimulate the private operator to be more efficient and can monitor it more effectively with respect to the fulfilment of contractual obligations (i.e., public service obligations, quality standards, etc.). Moreover, concerning the latter function, the board of directors of the mixed enterprise can be the suitable place where public and private representatives (respectively, welfare and profit maximisers) can meet to solve all disputes arising from incomplete contracts, without recourse to third parties. Finally, taking into account that a disproportionate public intervention in the “private” administration (or an ineffective protection of the general interest) would imply too many drawbacks, we draw some policy implications that make an equitable debate on the board of the firm feasible. Some empirical evidence is taken from the Italian water sector.

Supporting the Revolution: America, Democracy, and the End of the Cold War in Poland, 1981-1989. ACES Working Paper (Report) No. 8, 2007

Early on the morning of December 13, 1981, General Wojciech Jaruzelski, the leader of the communist Polish United Workers' Party (PZPR), declared martial law, ending the so-called "Polish Crisis," which began with the creation of the Independent Free Trade Union "Solidamosc" in August 1980. Over the next eight years, the Communist government and the opposition struggled over power, culminating in 1989 with the creation of a Solidamosc-led government which ended fifty years of Communist rule in Poland and led the way to further democratic revolutions throughout Eastern Europe. The purpose of this dissertation is to utilize newly available and underutilized archival sources as well as oral history interviews, from both international and American perspectives, to fully chronicle American policy toward Poland from the declaration of martial law until the creation of the Solidarnosc government. Rather than explaining Polish-American relations in bilateral terms, the dissertation illuminates the complex web of influences that determined American policy in Washington and affected its implementation within Poland. This includes descriptions of internal tensions within the Reagan administration, differences between American decisions in Washington and implementation in Warsaw, lobbying from Polish-American groups, clashes between Capitol Hill and the White House, coordination with American labor organizations to support Solidarnosc, disagreements with West European allies in NATO and international financial organizations, cooperation with the Vatican and the Polish Catholic Church, synchronization with American humanitarian organizations working in Poland, limitations caused by the realities of Soviet power in Eastern Europe, and complications caused by domestic Polish concerns. By taking a broad view of American policy and highlighting internal Polish decisions, with both the Communist government and the democratic opposition, the dissertation provides concrete examples of America's role in Poland's transformation, arguing, however, that this role was very limited. These conclusions are relevant to arguments about the end of the Cold War, the nature of American power, as well as current discussions about possibilities to promote democracy within hostile regimes.

EU-Turkey Summit on the refugee crisis Law and (dis)order? EPC Commentary, 21 March 2016

After many meetings and long hours of negotiations, the overwhelming feeling when a deal between the EU and Turkey was struck, was one of “mission accomplished”! Faced with an unprecedented crisis and forced to appease increasingly hostile public opinions back home, EU leaders had only one objective in mind: reducing the number of migrants arriving in the EU so that order can return in the framework of EU rules. However, a closer look at the Summit Conclusions and the EU-Turkey statement leaves a bitter taste, according to Yves Pascouau. In this Commentary, he questions the feasibility of the final EU-Turkey deal, saying that it creates more problems than it solves: besides the obvious legal and practical issues, it is far from certain which member states will be willing to do their part, or whether or not the EU can come up with a strategic vision on human mobility for the future.