The Redistribution of Property Rights, Corporate Governance and Company Restructuring after Privatisation"

The project covered the main issues of privatisation, corporate governance and company restructuring after privatisation in Hungary and in the Russian Republic, together with a summary of the broader picture of company-level changes in Central and Eastern Europe, discussing the issues of micro-financial restructuring in the Czech Republic, Hungary, Poland and Slovakia. The two countries selected as the focus of research can be regarded as the two most widely differing cases of the economic transformation in Central and Eastern Europe. Hungary began its transition very early in 1989, while Russia was very late in doing so. Hungary first implemented a series of institutional and systemic reforms before stabilising its public finances, while Russia has struggled with financial stabilisation for years without great success. Company restructuring and the introduction of new forms of governance only began in Russia in the mid-1990s. Hungary opted for "traditional" western methods of privatisation and invited a large amount of foreign direct investment (FDI) while in Russia the bulk of state-owned property was privatised either by free distribution or by a strange blend of ESOP-MBO schemes. FDI in Russia remained modest because of the high risk and uncertainty surrounding economic transactions there. Hungary was a forerunner in privatising public utilities, while Russia has moved cautiously in this area. The group's studies show that the Hungarian economy is now over the "transformation recession" and its economic success is largely due to its successful privatisation and to the dominant participation of foreign investors in company take-overs and in the restructuring process. The study of Russia provides a comprehensive account of the main factors in the so-far modest results in Russian privatisation and economic transformation.

The New Electoral Geography of Central Europe

Zarycki studied the political map of Central Europe today on the basis of results of recent parliamentary and/or presidential elections in the Czech Republic, Hungary, L8ithuania, Poland, Slovakia and Ukraine. He identified first the structure of regional political cleavages, then the spatial patterns emerging in different countries. He also considered the significance and eventual regional differentiation of various possible influences on these patterns, including urbanisation, historical heritage, ethnic factors, population movements, economic differentiation, the effects of the transformation, demographic factors, education and religion. Virtually all the countries showed a cleavage between more traditional, anti (or non-) communist regions and secular areas with higher post-communist support. Except in Ukraine and the Czech Republic, the post-communist party is dominated by the direct heirs of the former communist parties transformed into moderate left parties. The second major class of cleavages was typical of the Visegrad countries, i.e. the conflict between liberal, mostly metropolitan, regions and a different periphery, usually with a strong populist or anti-liberal appeal. This usually depends on the existence of a sizeable well-educated class, usually pro-market and pro-Western, and on the resolution of the conflict between post and anti-Communists. The third type of cleavage is based on ethnic factors and is clearest in Lithuania and Slovakia, where there are large ethnic minorities. Of factors influencing political behaviour, the two major ones identified were the historical heritage and urbanisation.