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.

De-industrialisation and the post-communist transition:Rowthorn and Wells' model revisited

In this paper we present a simple three-sector model explaining the structural change in employment, which is a modified version of Rowthorn-Wells (1987). We supplement the theoretical analysis with simple econometric tests, which illustrate how the modified Rowthorn-Wells model can be used to (i) motivate empirical estimates of the link between the level of development and structures of employment, (ii) illustrate structural distortions under the command economies, and the structural adjustment that happened during the post-Communist transition. We demonstrate that in the case of these economies, the transition process leads to an adjustment to the employment structures predicted by the model.

Post-communist recessions re-examined

We apply simple econometric methods to evaluate the factors that determined the length and depth of the post-Communist recessions. Early implementation of the stabilisation and liberalisation programmes made the recessions weaker. Wars had strong negative impact. Initial trade dependence made recessions more serious. The results are discussed with reference to the existing explanations of the 'transitional recessions', in particular Calvo and Coricelli (1992, 1993), Blanchard and Kremer (1997) and Blanchard (1997).

Deindustrialisation:lessons from the structural outcomes of post-Communist transition

Theoretical and empirical studies show that deindustrialisation, broadly observed in developed countries, is an inherent part of the economic development pattern. However, post-communist countries, while being only middle-income economies, have also experienced deindustrialisation. Building on the model developed by Rowthorn and Wells (1987) we explain this phenomenon and show that there is a strong negative relationship between the magnitude of deindustrialisation and the efficiency and consistency of market reforms. We also demonstrate that reforms of the agricultural sector play a significant role in placing a transition country on a development path that guarantees convergence to EU employment structures.

Deindustrialisation and structural change during the post-Communist transition

The aim of this paper is to model the evolution of employment structure in post-communist economies in the broader context of deindustrialisation. The paper builds on the model of structural change developed by Rowthorn and Wells (1987). We show that the starting point of high industry sector share in total employment and its direct fall when productivity of sectors changes in favour of services can be explained in terms of this framework. Moreover, the model can also describe the phenomenon of a further expansion of the agriculture, observed in countries classified as "less consistent" in the reforms implementation. Hence, we distinguish two development paths, the efficient one, called "horizontal", and the inefficient one called "vertical". We illustrate it with empirical data, using alternative measures of structural change and patterns of structural evolutions during transition. Finally, we discuss the link between the EBRD indicators of reforms and structural change. We show that the "quality" of reforms, not the initial GDP level determines a country's development path.

Cultural value orientations of the former communist countries:a gender-based analysis

This study examines the cultural value orientations of employees working in major industrial and commercial centers of six ex-communist Central Eastern European Countries (CEECs) and Euro-Asian countries, in particular the former Soviet Republics (FSRs). The analysis is based on a questionnaire survey administered with 1052 respondents. The study tests a number of hypotheses regarding the cultural orientations of the sample populations, using gender as the core variable. The study reports cultural dimensions on which the female respondents clearly differ from their male counterparts, and there is more cultural homogeneity among males than among females within the CEECs and FSRs. Furthermore, the findings show similar cultural patterns emerging between the Czech Republic, former East Germany (FEG), and Poland on the one hand and Georgia and Uzbekistan on the other, whereas Russia culturally stands between the two groups. The research also highlights the basis of cultural aspects from which both national and managerial cultures of each research country are emerging. It brings to light the methods employed by management toward human resources in these countries, and also identifies key issues for overseas operators currently undertaking a business or planning to establish one in these countries. © 2011 Taylor & Francis.

On realizing the principles of Gaudium et spes in a post-communist country: Searching for christian entrepreneurs and roots of individuals in Hungary at the time of globalization

Due to the communist regime in Hungary the values and principles of the Second Vatican Counsil could hardly achieve their goal in the region and the situation is almost the same even today. This paper examines two levels of society where the thoughts of Gaudium et spes might have appeared: we have explored that there are Christian companies existing about 15 years since the political transition in 1990 and we made a research among individuals in rural environment, how could they preserve their human wholeness described in GS, in other words, how could they keep their social, cultural, natural, religiuos and local roots amongst the consumer society that has been developped in Hungary at the time of capitalism. Regarding the Christian companies our research could produce a positive result: we have explored that although the Christian companies survayed hardly know the Church’s social doctrine, they live and operate according to it. At the same time in the realm of individuals we cannot tell good news of this kind. Most of the persons interviewed have already lost or are near to loose their roots, that is their human wholeness. Our final conclusion is that our hope for preserving even strenghtening the values of GS in the Hungarian society is in the communities, be it work communities, as John Paul II. mentioned in his encyclical Sollicitudo rei Socialis. The paper presents the details and conclusions of our researches.

Market reform and fiscal laxity in Communist and post-Communist Hungary: A path-dependent approach

Purpose – The purpose of this paper is to present a conceptual framework in order to analyse and understand the twin developments of successful microeconomic reform on the one hand and failed macroeconomic stabilisation attempts on the other hand in Hungary. The case study also attempts to explore the reasons why Hungarian policymakers were willing to initiate reforms in the micro sphere, but were reluctant to initiate major changes in public finances both before and after the regime change of 1989/1990. Design/methodology/approach – The paper applies a path-dependent approach by carefully analysing Hungary's Communist and post-Communist economic development. The study restricts itself to a positive analysis but normative statements can also be drawn accordingly. Findings – The study demonstrates that the recent deteriorating economic performance of Hungary is not a recent phenomenon. By providing a path-dependent explanation, it argues that both Communist and post-Communist governments used the general budget as a buffer to compensate the losers of economic reforms, especially microeconomic restructuring. The gradualist success of the country – which dates back to at least 1968 – in the field of liberalisation, marketisation and privatisation was accompanied by a constant overspending in the general government. Practical implications – Hungary has been one of the worst-hit countries of the 2008/2009 financial crisis, not just in Central and Eastern Europe but in the whole world. The capacity and opportunity for strengthening international investors' confidence is, however, not without doubts. The current deterioration is deeply rooted in failed past macroeconomic management. The dissolution of fiscal laxity and state paternalism in a broader context requires, therefore, an all-encompassing reform of the general government, which may trigger serious challenges to the political regime as well. Originality/value – The study aims to show that a relatively high ratio of redistribution, a high and persistent public deficit and an accelerated indebtedness are not recent phenomena in Hungary. In fact, these trends characterised the country well before the transformation of 1989/1990, and have continued in the post-socialist years, too. To explain such a phenomenon, the study argues that in the last couple of decades the hardening of the budget constraint of firms have come at the cost of maintaining the soft budget constraint of the state.

The Transitioning Economic Dynamics of the Military in Communist Regimes: A Comparison of Cuba, China and Vietnam [Student's Paper Series]

Several factors can increase or decrease military-economic involvement in communist regimes. This anomalous form of military behavior, labeled as the Military Business Complex (MBC), emerged in various communist regimes in the 1980s. However, in early 2000s, the communist governments of China and Vietnam began to decrease the number of military-managed industries, while similar industries increased in Cuba. This paper explains why military industries in Cuba have increased over the last two decades, while they decreased in the Chinese and Vietnamese examples. This question is answered by comparatively testing two hypotheses: the Communist Party and the Bureaucratic-Authoritarian (BA) Hypotheses. The Communist Party hypotheses helps explain how the historical and current structures of Party oversight of the military have been lacking in strength and reliability in Cuba, while they traditionally have been more robust in China and Vietnam. The BA hypotheses helps explain how, due to the lack of a strong civilian institutional oversight, the Cuban military has grown into a bureaucratic entity with many political officers holding autonomous positions of power, an outcome that is not prevalent in the Chinese and Vietnamese examples. Thus, with the establishment of a bureaucratic military government and with the absence of a strong party oversight, the Cuban military has been able to protect its economic endeavors while the Chinese and Vietnamese MBC regimes have contracted.

Communist ideas and Scots property law : Canning v Glasgow Caledonian University

Peer reviewed

Communist ideas and Scots property law : Canning v Glasgow Caledonian University

Peer reviewed

Political parties and trade unions in the post-communist Poland:class politics that have never a chance to happen

Trade unions in Poland have not built the stable and long-term relations with political parties as are observed in Western democracies. By analysing the historical and symbolic background of the transformation to a democratic civil society and free market economy, political preferences of working class, trade union membership rates, and public opinion polls, we argue that, in case of Poland, the initial links between political parties and trade unions weakened over time. Polish trade unions never had a chance to become a long-term intermediary between society and political parties, making the Polish case study a double exception from the traditional models.

‘The voice speaking, desired, awaited’: Jack Lindsay’s 1649, Textual Form and Communist Historiography

This article examines the 1938 historical novel 1649: A Novel of a Year by the Anglo-Australian communist polymath Jack Lindsay in the context of the politics of the Popular Front, and identifies the aesthetic and historiographic debates questions that inform Lindsay’s inventive rendition of the historical novel. The novel may be considered in light of what Lindsay later called his desire ‘to use the novel to revive revolutionary traditions’, as well as his ‘struggle to achieve an understanding of the Novel while writing novels’. Lindsay’s novel figures a reality becoming prosaic: it reproduces contemporary textual sources – tracts, pamphlets, newspapers – as part of its meditation on a nascent print culture whose products circulate in processes that mirror the increasingly conspicuous flow of commodities. In this sense, the novel offers a marxist reflection on its own conditions of possibility in emergent bourgeois culture, as well as intervening in the vexed question of the Civil War as a ‘bourgeois revolution’. The novel however seeks to capture a dialectical method of representing the revolution that acknowledges defeat while rearticulating the utopian content of the defeated radicals, a practice integral to Lindsay’s vision of popular history as a transhistorical dialogue. That utopian content is transmitted through two forms: popular song, which acts to supplement political writing; and the heroic portrayal of the Leveller John Lilburne on trial, whose conduct exemplifies praxis conceived as a unity of word, thought and action.