Hierarchy of governance institutions and the pecking order of privatisation

This article discusses property rights, corporate governance frameworks and privatisation outcomes in the Central–Eastern Europe and Central Asia (CEECA) region. We argue that while CEECA still suffers from deficient ‘higher order’ institutions, this is not attracting sufficient attention from international institutions like EBRD and the World Bank, which focus on ‘lower order’ indicators. We discuss factors that may alleviate the negative impact of the weakness in institutional environment and argue for the pecking order of privatisation, where equivalent privatisation is given a priority but speed is not compromised.

Russia

Ruta Aidis, Julia Korosteleva and Tomasz Mickiewicz 1. Introduction to Russia Russia is the world’s largest country, a nuclear superpower with unsurpassed energy resources. It is also a country which finds itself at the crossroads of possible development paths. Market-oriented mechanisms have been introduced but Soviet era laws remain on the books. Corruption has become a way of life and freedom of the press has been gradually eliminated in the early 2000s. Within this backdrop, private entrepreneurship has emerged, albeit in a distorted way. As the heart of the Soviet empire, Russia had tremendous control of enormous amounts of natural resources and human capital. Yet, 20 years ago, in the late 1980s, it was a country where entrepreneurship was marginal, the economy was stagnant and the ruling communist hierarchy had no clear formula for solving the deepening crisis. Unfortunately the reforms characterizing Russia’s attempts at rebuilding statehood after the collapse of the Soviet Union in the 1990s, first under Mikhail Gorbachev and then Boris Y’eltsin, were inconsistent and did not foster macroeconomic stabilization. However, since 2000, under Vladimir Putin’s leadership, macroeconomic stabilization as well as institutional stability has been achieved. In addition, an unprecedented increase in the price and demand for oil and gas resources has resulted in a rapid growth of Russia’s gross domestic product (GDP). Russia now has a large private sector, though not without its limitations. At first glance, ‘de jure’ regulations often seem reasonable, yet it is the selective and arbitrary manner by which they are...

Economic transition in Central Europe and the Commonwealth of Independent States

Fifteen years ago, twenty-seven countries in Europe and Central Asia embarked on their economic transition paths. For some, the outcome was a considerable success. Several others are still struggling to shed the inheritance of the past and to correct more recent policy mistakes. Why were post-Communist recessions so long in some countries and growth disappointing? Why was fiscal performance so different? Was democracy a factor, which facilitated reforms or rather slowed them down? This book discusses these questions in the context of new empirical evidence, including a critical examination of the main themes in the economics of transition.

Wage bargaining, privatisation, ability to pay and outside options:evidence from Hungary

This article examines the determinants of short-term wage dynamics, using a sample of large Hungarian companies for 1996–99. We test the basic implications of an efficient contract model of bargaining between incumbent employees and managers, which the data do not reject. In particular, there are structural differences between the ownership sectors consistent with our prior knowledge on relative bargaining strength and unionisation measures. Stronger bargaining position of workers leads to higher ability to pay elasticity of wages, and lower outside option elasticity. Our results indicate that while bargaining position of workers in domestic privatised firms may be weaker than in the state sector, the more robust difference relates to state sector workers versus privatised firms with majority foreign ownership.

Privatisation in Poland:ten years after

The purpose of this article is to compare economic discussion on privatisation, expected privatisation outcomes and actual results in Poland. First it discusses the privatisation of state enterprises in the broader context of the economic transformation programme designed and introduced at the end of 1989 and the beginning of 1990. It examines the choice of privatisation methods, the political economy of privatisation and the three major policy issues: pace of privatisation, sequence of privatisation and the authority to initiate and carry out privatisation. The final section compares privatisation blueprints and actual results. The appendix presents a detailed technical guide to the privatisation methods in Poland and a basic set of figures illustrating the outcome.

The continuing relevance of Germany's engine for CEE andthe EU

The article looks first into the nature of the relations between Germany and the CEE countries a decade since the accession of the CEE countries to the EU. The relations are characterized as normalised and intensive with diverse levels of closeness and co-operation reflecting of the conceptual and ideological compatibility/differences. Next, the article focuses on the German attitude to the euro zone crisis. Germany has become a hegemon in the rescue effort aimed at stabilisation and economic invigoration of the euro zone. However, German hegemony has developed by default, not by design: her leading position is linked with considerable political and financial costs. Germany moved central stage and took the position of a reluctant hegemon. However, German role is contested internationally (it has not the support of the French government in key areas) as well as internally (particularly by the Federal Constitutional Court and the Bundesbank).The article argues that the new situation makes the German-CEE relations increasingly relevant for both sides. The German leadership of the EU increasing split along the north-south divide requires backing by the Northern group countries to which the CEE in general belongs. Given a number of reasons the CEE countries implement three distinctive strategies of co-operation with Germany in European politics. Also military co-operation, which remained rather limited so far, may receive new impulses, given the financial austerity. © 2013 The Regents of the University of California.

Transition and foreign aid policies in the Visegrád countries:a path dependant approach

The paper argues that the current emerging international development policies of the Visegrád (V4) countries are heavily influenced by the certain aspects of the Communist past and the transition process. Due to these influences, the V4 countries have difficulties in adapting the foreign aid practices of Western donors and this leads to the emergence of a unique Central and Eastern European development cooperation model. As an analytical background, the paper builds on the path dependency theory of transition. A certain degree of path dependence is clearly visible in V4 foreign aid policies, and the paper analyses some aspects of this phenomenon: how these new emerging foreign aid donors select their partner countries, how much they spend on aid, how they formulate their aid delivery policies and institutions and what role the non-state actors play. The main conclusions of the paper are that the legacies of the Communist past have a clear influence and the V4 countries still have a long way to go in adapting their aid policies to international requirements.

New approaches to North Korean politics after reunification:the search for a common Korean identity

Whilst most of the literature focusing on the Korean peninsula has concentrated on how to achieve unification through confidence-building measures, dialogues, negotiation and diplomacy, little attention has been paid to how a unified Korean identity, a core component of any potential reunification scheme could develop and be sustained. The paper addresses this gap by: (1) defining what national identity is, and how Korean identities have been formed, (2) outlining how both South and North Korea have understood and used the concept of national identity, (3) suggesting possible grounds on which the two Koreas could build a new, common national identity. © 2014 The Regents of the University of California.

An investigation of Albanian EFL teachers' decision-making in their use of CLT-oriented textbooks

Against a backdrop of ongoing educational reforms that seek to introduce Communicative Language Teaching (CLT) in Albanian primary and secondary state schools, Albanian teachers, among others, are officially required to use communication-based textbooks in their classes. Authorities in a growing number of countries that are seeking to improve and westernise their educational systems are also using communication-based textbooks as agents of change. Behind these actions, there is the commonly held belief that textbooks can be used to support teacher learning as they provide a visible framework teachers can follow. Communication-based textbooks are used in thousands of EFL classrooms around the world to help teachers to “fully understand and routinize change” (Hutchinson and Torres, 1994:323). However, empirical research on the role materials play in the classroom, and in particular the role of textbook as an agent of change, is still very little, and what does exist is rather inconclusive. This study aims to fulfill this gap. It is predominately a qualitative investigation into how and why four Albanian EFL teachers use Western teaching resources in their classes. Aiming at investigating the decision-making processes that teachers go through in their teaching, and specifically at investigating the relationship between Western-published textbooks, teachers’ decision making, and teachers’ classroom delivery, the current study contributes to an extensive discussion on the development of communicative L2 teaching concepts and methods, teacher decision making, as well as a growing discussion on how best to make institutional reforms effective, particularly in East-European ex-communist countries and in other developing countries. Findings from this research indicate that, prompted by the content of Western-published textbooks, the four research participants, who had received little formal training in CLT teaching, accommodated some communicative teaching behaviours into their teaching. The use of communicative textbooks, however, does not seem to account for radical, methodological changes in teachers’ practices. Teacher cognitions based on teachers’ previous learning experience are likely to act as a lens through which teachers judge classroom realities. As such, they shape, to a great degree, the decisions teachers make regarding the use of Western-published textbooks in their classes.

Uncovering North Korea's energy security dilemma:past policies, present choices, future opportunities

Over the past two decades, the Democratic People's Republic of Korea has allegedly developed nuclear energy while suffering near collapse caused by catastrophic economic policies. This article presents an evaluation of North Korea's contemporary energy policies and suggests that despite retaining communist ideals and "Chu'che" policies, North Korea has slowly started to modernise its energy sector and recognises the necessity to start engaging with the international community. While it is argued that Pyongyang's newfound concerns for sustainable development, equity and the environment are a welcomed departure from its usual belligerent rhetoric and present a number of exciting engagement opportunities, the regime has not abandoned its nuclear energy programme.

Caste, class and Trade Unionism in India

The caste system in India and its exploitative nature has been well researched (Siddique 2011 Gupta 2000). However, the role of caste in Indian employment relations and in particular its role in the labor movement in India is yet to be fully explored. The primary aim of this paper is to examine the rise of caste- based trade unions in India over the past decade. Specifically, we aim to examine why the lower-caste workers (historically treated as untouchables, referred to as ‘Dalits’and officially designated as Scheduled Caste and Tribes) are leaving established trade unions to organize their own unions along caste lines? While fragmentation of trade unions is a well-known phenomenon both in India and in the Western World (Shyam Sundar 2015; Connolly et al. 2014), the rise of caste based trade unions is a relatively new phenomenon which is yet to be fully explored. Caste based trade unionism appears to be counter-intuitive when the conventional logic suggests that unions are class based collective institutions which represent the interest of the working classes (Ramaswamy 1976). The Indian trade union movement has historically been fragmented along political ideological lines ranging from moderate unions affiliated to the Congress Party to the militant unions affiliated to the Communist and Socialist parties. However, the rise of caste-based trade unions of the lower caste workers is a relatively new phenomenon. Our findings from surveys and interviews with mainstream unions and caste-based trade unions suggest that the caste-based trade unions are unique in at least three ways. First, these unions are breaking away from well-established radical and militant union federations such as those affiliated to the Communist and Socialist parties. Second, these unions are predominantly organized on caste identities and not occupational identities or political ideologies. Third in unionized workplaces, lower caste workers are forming their own separate unions along caste lines with membership restricted only to workers of their own caste instead of joining the mainstream unions where present. We examine these issues using the analytical framework of Paulo Freire (1970) – dialogics, praxis and cultural oppression and relate it with the insights from comparative politics which examine the role of actors & their interests within institutions (Peters 2011).