Market reform and state paternalism in Hungary: a path-dependent approach

Hungary is one of the worst-hit countries of the current financial crisis in Central and Eastern Europe. The deteriorating economic performance of the country is, however, not a recent phenomenon. A relatively high ratio of redistribution, a high and persistent public deficit and accelerated indebtedness characterised the country not just in the last couple of years but also well before the transformation, which also continued in the postsocialist years. 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. The paper attempts to explore the reasons behind policymakers’ impotence to reform public finances. By providing a path-dependent explanation, it argues that both communist and postcommunist governments used the general budget as a buffer to compensate losers of economic reforms, especially microeconomic restructuring. The ever-widening circle of net benefiters of welfare provisions paid from the general budget, however, has made it simply unrealistic to implement sizeable fiscal adjustment, putting the country onto a deteriorating path of economic development.

Centre-periphery tensions regarding Central and Eastern Europe

Security issues have played an important role in widening the European Union with eight Central and Eastern European economies. The time since have proved these concerns to be correct. The present North-South tension within the Euro-zone highlights even more the West-East tensions inherent in the international relations since the Eastern enlargement. Various divisions – political and economic alike – have already been felt throughout the whole period of 2004-20122 (Balázs, J.1985, 1993, 1995, 1996). The worldwide economic crisis of 2008, however, has revealed even more the hidden tensions in these relations. The political events after the 2010 election in Hungary, those in Romania in 2012, the continuous anti-EU declarations of the Czech president present ample evidence to the fact: the enlargement has been based more on political wishes and will than on firm economic reasoning. The outcome is constant struggle between the parties to keep face and save the state of the European Union. Ongoing political and economic struggles around Greece, Portugal and Spain are other forms of fundamental problems within the European Union. It is worthwhile, hence to study the almost forgotten centre – periphery relations in this respect.

Can the Paks-2 Nuclear Power Plant operate without State aid? A business economic analysis

Many studies have investigated the prospects for returns, the budgetary and financing background and energy management effects of the new nuclear power plant units to be built at Paks. This document seeks to complement previous economics-based studies by adding a new criterion. The key question in our analysis is whether the power plant company will be capable of independent operations in an economic sense - or will its survival depend on further additional aid by the owner, i.e. via the central budget, after its commissioning? We shall examine from a corporate perspective in what ways the already disclosed financing terms and conditions may affect the everyday operations of the power plant company.

"Rentier States" or the Relationship between Regime Stability and Exercising Power in Post-Soviet Central Asia

The paper intends to give an insight into the relations of the economic and political systems of the Central Asian republics using the theoretical framework of the "rentier economy" and "rentier state" approach. The main findings of the paper are that two (Kazakhstan and Turkmenistan) of the five states examined are commodity export dependent “full-scale” rentier states. The two political systems are of a stable neo-patrimonial regime character, while the Kyrgyz Republic and Tajikistan, poor in natural resources but dependent on external rents, may be described as "semi-rentier" states or "rentier economies". They are politically more instable, but have an altogether authoritarian, oligarchical “clan-based” character. Uzbekistan with its closed economy, showing tendencies of economic autarchy, is also a potentially politically unstable clan-based regime. Thus, in the Central Asian context, the rentier state or rentier economy character affects the political stability of the actual regimes rather than having a direct impact on whether power is exercised in an autocratic or democratic way.

Ethnic groups and institutions: A study of institutional engineering in four Central and Eastern European countries

The issue of institutional engineering has gained a renewed interest with the democratic transitions of the Central and Eastern European countries, as for some states it has become a matter of state survival. The four countries examined in the study – Macedonia, Slovakia, Romania and Bulgaria – exemplify the difficulty in establishing a stable democratic society in the context of the resurgence of national identity. The success of ethnonational minorities in achieving the desired policies affirming or expanding their rights as a group was conditioned upon the cohesion of the minority as well as the permissiveness of state institutions in terms of participation and representation of minority members. The Hungarian minorities in Slovakia and Romania, the Turkish minority in Bulgaria, and the Albanian minority in Macedonia, formed their political organizations to represent their interests. However, in some cases the divergence of strategies or goals between factions of the minority group seriously impeded its ability to obtain the desired concessions from the majority. The difficulty in the pursuit of policies favoring the expansion of minority rights was further exacerbated in some of the cases by the impermissiveness of political institutions. The political parties representing the interest of ethnonational minorities were allowed to participate in elections, although not without suspicions about their intent and even strong opposition from majority groups, but participation in elections and subsequent representation in legislative bodies did not translate into adoption of the desired policies. The ethnonational minorities' inability to effectively influence the decision-making process was the result of the inadequacy of democratic institutions to process these demands and channel them through the normal political process in the absence of majority desire to accommodate them. Despite the promise of democratic institutions to bring about a major overhaul of the policies of forceful assimilation and disregard for minority rights, the four cases analyzed in the study demonstrate that in effect ethnonational minorities continued to be at the mercy of the majority, especially if the minority was unable to position itself as a balancing actor.

Climate Change and Regions at Risk: A Look at Central America

Climate change has been a security issue for mankind since Homo sapiens first emerged on the planet, driving him to find new and better food, water, shelter, and basic resources for survival and the advancement of civilization. Only recently, however, has the rate of climate change coupled with man’s knowledge of his own role in that change accelerated, perhaps profoundly, changing the security paradigm. If we take a ―decades‖ look at the security issue, we see competition for natural resources giving way to Cold War ideological containment and deterrence, itself giving way to non-state terrorism and extremism. While we continue to defend against these threats, we are faced with even greater security challenges that inextricably tie economic, food and human security together and where the flash points may not provide clearly discernable causes, as they will be intrinsically tied to climate change. Several scientific reports have revealed that the modest development gains that can be realized by some regions could be reversed by climate change. This means that climate change is not just a long-term environmental threat as was widely believed, but an economic and developmental disaster that is unfolding. As such, addressing climate change has become central to the development and poverty reduction by the World Bank and other financial institutions. In Latin America, poorer countries and communities, such as those found in Central America, will suffer the hardest because of weaker resilience and greater reliance on climatesensitive sectors such as agriculture. The US should attempt to deliver capability to assist these states to deal with the effects of climate change.

The Use of the Military for Law Enforcement Activities in Central America

Faced with the violence, criminality and insecurity now threatening peace and democratic governance in Central America, the region’s governments have decided to use the Armed Forces to carry out actions in response to criminal actions, looking to improve their performance. Although public demand for including the Armed Forces in these functions takes place within a legally legitimate framework, it is motivated by tangible circumstances such as increased levels of violence, delinquency and crime. Despite being coupled with the perception of institutional weakness within the security and judicial system (particularly police) and the recognition of prestige, efficiency, discipline and severity in fulfilling the Armed Forces’ missions, these arguments are insufficient to legitimize the use of the military as a police force. Within this context, this paper reflects on the implications or consequences of the use of the Armed Forces in duties traditionally assigned to the police in the Central American region with the goal of contributing to the debate on this topic taking place in the Americas. To achieve this end, first we will focus on understanding the actual context in which a decision is made to involve the Armed Forces in security duties in the region. Second, we will examine the effects and implications of this decision on the Armed Forces’ relations within their respective societies. Third and finally, considering this is already a reality in the region, this paper will provide recommendations. The main findings of this research, resulting from the application of an analyticaldescriptive and historically based study, are organized in three dimensions: the political dimension, by implication referring to the relationship between the ultimate political authority and the Armed Forces; the social dimension, by implication the opinion of citizens; and other implications not only affecting the structural and cultural organization of armies and police but also the complementary operational framework within a context of comprehensive response by the State. As a main conclusion, it poses there is an environment conducive to the use of the Armed Forces in citizen’s security, in view of the impact of threats provoked by criminal structures of a military nature currently operating in Central America. However, this participation creates an inevitable social and political impact if implemented in isolation or given a political leading role and/or operational autonomy. This participation poses risks to the institutions of the Armed Forces and the police as well. Finally, this paper identifies an urgent need for the Armed Forces’ role to be more clearly defined with regard to security matters, limiting it to threats that impact States’ governability and existence. Nonetheless, Central American States should seek a COMPREHENSIVE response to current crime and violence, using all necessary institutions to confront these challenges, but with defined roles and responsibilities for each and dynamic coordination to complement their actions.

Guatemala: A Failing State?

 Guatemala is not a failed state and is unlikely to become one in the near future. Although the state currently fails to provide adequate security to its citizens or an appropriate range of effective social programs, it does supply a functioning electoral democracy, sound economic management, and a promising new antipoverty program, My Family Progresses (MIFAPRO).  Guatemala is a weak state. The principal security threats represented by expanding Mexican drug trafficking organizations (DTOs), criminal parallel powers, and urban gangs have overwhelmed the resources of the under-resourced and compromised criminal justice system. The UN-sponsored International Commission against Impunity in Guatemala (CICIG), however, has demonstrated that progress against organized crime is possible.  The principal obstacles to strengthening the Guatemalan state lie in the traditional economic elite’s resistance to taxation and the venal political class’ narrow focus on short-term interests. Guatemala lacks a strong, policyoriented, mass-based political party that could develop a coherent national reform program and mobilize public support around it.  The United States should strengthen the Guatemalan state by expanding the Central America Regional Security Initiative (CARSI) and by strongly supporting CICIG, MIFAPRO, and the Supreme Electoral Tribunal (TSE).

Beyond the Pay: Current Illicit Activities of the Armed Forces in Central America

The growth of criminal gangs and organized crime groups has created unprecedented challenges in Central America. Homicide rates are among the highest in the world, countries spend on average close to 10 percent of GDP to respond to the challenges of public insecurity, and the security forces are frequently overwhelmed and at times coopted by the criminal groups they are increasingly tasked to counter. With some 90 percent of the 700 metric tons of cocaine trafficked from South America to the United States passing through Central America, the lure of aiding illegal traffickers through provision of arms, intelligence, or simply withholding or delaying the use of force is enormous. These conditions raise the question: to what extent are militaries in Central America compromised by illicit ties to criminal groups? The study focuses on three cases: Nicaragua, El Salvador, and Honduras. It finds that: Although illicit ties between the military and criminal groups have grown in the last decade, militaries in these countries are not yet “lost’ to criminal groups. Supplying criminal groups with light arms from military stocks is typical and on the rise, but still not common. In general the less exposed services, the navies and air forces, are the most reliable and effective ones in their roles in interdiction. Of the three countries in the study, the Honduran military is the most worrying because it is embedded in a context where civilian corruption is extremely common, state institutions are notoriously weak, and the political system remains polarized and lacks the popular legitimacy and political will needed to make necessary reforms. Overall, the armed forces in the three countries remain less compromised than civilian peers, particularly the police. However, in the worsening crime and insecurity context, there is a limited window of opportunity in which to introduce measures targeted toward the military, and such efforts can only succeed if opportunities for corruption in other sectors of the state, in particular in law enforcement and the justice system, are also addressed. Measures targeted toward the military should include: Enhanced material benefits and professional education opportunities that open doors for soldiers in promising legitimate careers once they leave military service. A clear system of rewards and punishments specifically designed to deter collusion with criminal groups. More effective securing of military arsenals. Skills and external oversight leveraged through combined operations, to build cooperation among those sectors of the military that have successful and clean records in countering criminal groups, and to expose weaker forces to effective best practices.

A state of war: Florida from 1939 to 1945

World War II profoundly impacted Florida. The military geography of the State is essential to an understanding the war. The geostrategic concerns of place and space determined that Florida would become a statewide military base. Florida's attributes of place such as climate and topography determined its use as a military academy hosting over two million soldiers, nearly 15 percent of the GI Army, the largest force the US ever raised. One-in-eight Floridians went into uniform. Equally, Florida's space on the planet made it central for both defensive and offensive strategies. The Second World War was a war of movement, and Florida was a major jump off point for US force projection world-wide, especially of air power. Florida's demography facilitated its use as a base camp for the assembly and engagement of this military power. In 1940, less than two percent of the US population lived in Florida, a quiet, barely populated backwater of the United States. But owing to its critical place and space, over the next few years it became a 65,000 square mile training ground, supply dump, and embarkation site vital to the US war effort. Because of its place astride some of the most important sea lanes in the Atlantic World, Florida was the scene of one of the few Western Hemisphere battles of the war. The militarization of Florida began long before Pearl Harbor. The pre-war buildup conformed to the US strategy of the war. The strategy of theUS was then (and remains today) one of forward defense: harden the frontier, then take the battle to the enemy, rather than fight them in North America. The policy of "Europe First," focused the main US war effort on the defeat of Hitler's Germany, evaluated to be the most dangerous enemy. In Florida were established the military forces requiring the longest time to develop, and most needed to defeat the Axis. Those were a naval aviation force for sea-borne hostilities, a heavy bombing force for reducing enemy industrial states, and an aerial logistics train for overseas supply of expeditionary campaigns. The unique Florida coastline made possible the seaborne invasion training demanded for US victory. The civilian population was employed assembling mass-produced first-generation container ships, while Floridahosted casualties, Prisoners-of-War, and transient personnel moving between the Atlantic and Pacific. By the end of hostilities and the lifting of Unlimited Emergency, officially on December 31, 1946, Floridahad become a transportation nexus. Florida accommodated a return of demobilized soldiers, a migration of displaced persons, and evolved into a modern veterans' colonia. It was instrumental in fashioning the modern US military, while remaining a center of the active National Defense establishment. Those are the themes of this work.

Post-revolutionary post-modernism: Central American detective fiction by the turn of the 21st century

Contemporary Central American fiction has become a vital project of revision of the tragic events and the social conditions in the recent history of the countries from which they emerge. The literary projects of Sergio Ramirez (Nicaragua), Dante Liano (Guatemala), Horacio Castellanos Moya (El Salvador), and Ramon Fonseca Mora (Panama), are representative of the latest trends in Central American narrative. These trends conform to a new literary paradigm that consists of an amalgam of styles and discourses, which combine the testimonial, the historical, and the political with the mystery and suspense of noir thrillers. Contemporary Central American noir narrative depicts the persistent war against social injustice, violence, criminal activities, as well as the new technological advances and economic challenges of the post-war neo-liberal order that still prevails throughout the region. ^ Drawing on postmodernism theory proposed by Ihab Hassan, Linda Hutcheon and Brian MacHale, I argued that the new Central American literary paradigm exemplified by Sergio Ramirez's El cielo llora por mí, Dante Liano's El hombre de Montserrat, Horacio Castellanos Moya's El arma en el hombre and La diabla en el espejo , and Ramon Fonseca Mora's El desenterrador, are highly structured novels that display the characteristic marks of postmodern cultural expression through their ambivalence, which results from the coexistence of multiple styles and conflicting ideologies and narrative trends. The novels analyzed in this dissertation make use of a noir sensitivity in which corruption, decay and disillusionment are at their core to portray the events that shaped the modern history of the countries from which they emerge. The revolutionary armed struggle, the state of terror imposed by military regimes and the fight against drug trafficking and organized crime, are among the major themes of these contemporary works of fiction, which I have categorized as perfect examples of the post-revolutionary post-modernism Central American detective fiction at the turn of the 21st century.^

Central American refugees in Costa Rica

The conflicts of the past decade in Central America have produced substantial refugee movements into neighboring nations. Costa Rica has had to cope with an influx of refugees and migrants as large as 10 percent of its population. This work presents a case study of the situation in Costa Rica, focusing on the issue of refugee integration into the host society. It draws on qualitative field research conducted in that country during 1986. The study discusses the evolution of the Costa Rican state's response to the refugee crisis and analyzes the characteristics and impact of policies undertaken by various state bureaucracies. It also describes the assistance efforts of the United Nations High Commissioner for Refugees and private voluntary organizations, along with their interaction with the Costa Rican state. The study concludes that the government's need to maintain firm control of refugee programs has overshadowed its commitment to refugee integration. In so doing, the humanitarian purpose of refugee assistance has been compromised.

The Central European initiative : an approach to regional stabilization and democratic consolidation

This thesis examines how multilateral institutions can contribute to democratization and regional stability. It is a case study of the Central European Initiative (CEI), a regional intergovernmental organization founded by Italy and Austria in 1989 to undertake a regional integration process, and of its role in stabilizing post-communist democracies. Documents were collected at the CEI offices in Trieste, Italy, and interviews conducted with CEI officers, and data obtained from the websites of related organizations and of CEI member countries. The thesis probes the relevance of concepts derived from theories of international regimes and social constructivism. It shows that the CEI diffuses norms and institutional rules conducive to consolidating democracies, including the development of a free civil society, a relatively autonomous political society, rule of law, state bureaucracies that are usable by the new democratic governments, and functioning free market economies, addition, and fosters habits of dialogue, socializes participants, and supports the creation of supra-national identities.

Nutrients of pore water in sediments of the central equatorial Pacific

Shipboard whole-core squeezing was used to measure pore water concentration vs depth profiles of [NO3]-, O2 and SiO2 at 12 stations in the equatorial Pacific along a transect from 15°S to 11°N at 135°W. The [NO3]- and SiO2 profiles were combined with fine-scale resistivity and porosity measurements to calculate benthic fluxes. After using O2 profiles, coupled with the [NO3]- profiles, to constrain the C:N of the degrading organic matter, the [NO3]- fluxes were converted to benthic organic carbon degradation rates. The range in benthic organic carbon degradation rates is 7-30 ?mol cm**-2 y**-1, with maximum values at the equator and minimum values at the southern end of the transect. The zonal trend of benthic degradation rates, with its equatorial maximum and with elevated values skewed to the north of the equator, is similar to the pattern of primary production observed in the region. Benthic organic carbon degradation is 1-2% of primary production. The range of benthic biogenic silica dissolution rates is 6.9-20 µmol cm**-2 y**-1, representing 2.5-5% of silicon fixation in the surface ocean of the region. Its zonal pattern is distinctly different from that of organic carbon degradation: the range in the ratio of silica dissolution to carbon degradation along the transect is 0.44-1.7 mol Si mol C**-1, with maximum values occurring between 12°S and 2°S, and with fairly constant values of 0.5-0.7 north of the equator. A box model calculation of the average lifetime of the organic carbon in the upper 1 cm of the sediments, where 80 +/- 11% of benthic organic carbon degradation occurs, indicates that it is short: from 3.1 years at high flux stations to 11 years at low flux stations. The reactive component of the organic matter must have a shorter lifetime than this average value. In contrast, the average lifetime of biogenic silica in the upper centimeter of these sediments is 55 +/- 28 years, and shows no systematic variations with benthic flux.

Changes in Brain Resting-state Functional Connectivity Associated with Peripheral Nerve Block: A Pilot Study.

BACKGROUND: Limited information exists on the effects of temporary functional deafferentation (TFD) on brain activity after peripheral nerve block (PNB) in healthy humans. Increasingly, resting-state functional connectivity (RSFC) is being used to study brain activity and organization. The purpose of this study was to test the hypothesis that TFD through PNB will influence changes in RSFC plasticity in central sensorimotor functional brain networks in healthy human participants. METHODS: The authors achieved TFD using a supraclavicular PNB model with 10 healthy human participants undergoing functional connectivity magnetic resonance imaging before PNB, during active PNB, and during PNB recovery. RSFC differences among study conditions were determined by multiple-comparison-corrected (false discovery rate-corrected P value less than 0.05) random-effects, between-condition, and seed-to-voxel analyses using the left and right manual motor regions. RESULTS: The results of this pilot study demonstrated disruption of interhemispheric left-to-right manual motor region RSFC (e.g., mean Fisher-transformed z [effect size] at pre-PNB 1.05 vs. 0.55 during PNB) but preservation of intrahemispheric RSFC of these regions during PNB. Additionally, there was increased RSFC between the left motor region of interest (PNB-affected area) and bilateral higher order visual cortex regions after clinical PNB resolution (e.g., Fisher z between left motor region of interest and right and left lingual gyrus regions during PNB, -0.1 and -0.6 vs. 0.22 and 0.18 after PNB resolution, respectively). CONCLUSIONS: This pilot study provides evidence that PNB has features consistent with other models of deafferentation, making it a potentially useful approach to investigate brain plasticity. The findings provide insight into RSFC of sensorimotor functional brain networks during PNB and PNB recovery and support modulation of the sensory-motor integration feedback loop as a mechanism for explaining the behavioral correlates of peripherally induced TFD through PNB.