Growth versus Security: Old and New EU Members’ Quest for a New Economic and Social Model

294 Pages·2008·2.638 MB·English

by  Wojciech Bieńkowski, Josef C. Brada, Mariusz-Jan Radło (eds.)

Growth versus Security
AlsoeditedbyWojciechBien´´kowski,JosefC.BradaandMariusz-JanRadło
REAGANOMICSGOESGLOBAL
WhatCantheEU,RussiaandOtherTransitionCountriesLearnfromtheUSA?
Growth versus Security
Old and New EU Members’ Quest for a
New Economic and Social Model
Edited by
Wojciech Bien´kowski
Josef C. Brada
and
Mariusz-Jan Radło
Selectionandeditorialmatter(cid:2)WojciechBie´nkowski,JosefC.Bradaand
Mariusz-JanRadło2008
Foreword(cid:2)SteveH.Hanke2008
Individualchapters(cid:2)contributors2008
Softcover reprint of the hardcover 1st edition 2008 978-0-230-20053-1
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Contents
ListofTables, FiguresandBoxes vii
ForewordbySteveH.Hanke x
Preface xii
NotesontheContributors xiv
PARTI THECREATIONANDREFORMOFSOCIO-ECONOMIC
SYSTEMSATTHENATIONALLEVEL
1 LessonsfromSweden’sWelfareState:AnAmerican–Swedish
Perspective 3
BirgittaSwedenborg
2 FlexicurityinDenmark:AModelforLabourMarket
ReformsintheEU? 33
PerKongshøjMadsen
3 Slovakia:AStoryofReforms 54
IvanMiklosˇ
4 TheCzechSocio-EconomicModelandItsEvolution
fromtheStartofTransitionto2007 89
KarelDyba
5 InstitutionalTransplantsintheTransformationof
Poland’sEconomyandPolity 116
JacekRostowski
6 TheEuropeanUnionandtheNewMemberStates’
Dilemmas:TheCaseofPoland 136
WojciechBien´´kowski
v
vi Contents
PARTII ECONOMICGROWTHANDSECURITYIN
COMPARATIVEPERSPECTIVE
7 NewChallengesfortheEuropeanModelandHowto
CopewithIt 159
KarlAiginger
8 BeyondModelsandRegulations:EastwardExpansion
versusRetrenchmentinthe‘New’EU? 178
WalterD.Connor
9 EconomicFreedom,ConfidenceandGrowth 200
SteveH.Hanke
PARTIII KEYFACTORSINTHESEARCHFOR
GROWTHANDSECURITY
10 PublicFinancesandStructuralReformsintheUSand
theEU:LessonsfortheNewMemberStates 211
FilipKeeremanandSiegfriedSteinlein
11 CompetitionandSolidarityinHigherEducation–AReform
ProposalAimingatImprovingQualityandEnhancing
Security:TheCaseofHungary 239
LajosBokros
12 GrowthversusSecurity:ChoiceandtheGenerational
DifferenceinPreferences 252
StanisławGomułka
13 InSearchofaPerfectRegulatorySystem 260
EwaFreyberg
Conclusions 279
Index 281
List of Tables, Figures and Boxes
Tables
3.1 RedistributivegovernmentpoliciesinSlovakia(GDPin%) 59
3.2 EconomicperformanceofSlovakia,2003–04(in%) 59
3.3 Taxincomein2003–07,asapercentageofGDP,
ESA95 67
3.4 Taxincomein2003–07,inthousandsofSKK,ESA95 67
3.5 Unemploymentdevelopmentandemploymentgrowth
inSlovakia,1998–2006(in%) 74
3.6 Comparisonofgroupsofcountries 76
3.7 Paceofrealincomegrowthinnationaleconomy,
1993–2006 77
6.1 Corruptionandethicsindifferentinstitutionsin2006 141
6.2 Easeindoingbusiness–internationalrankingfrom
theyear2007 143
6.3 MajoreconomicindicatorsofselectedOECDand
EUcountriesin1997–2006 148
6.4 Wages,labourcostsandlong-termunemployment
levelsinselectedOECDandEUcountries,1997–2006 150
6.5 TotaltaxreceiptsasapercentageofGDPinselected
OECDandEUcountries,1996and2004 152
6.6 Comparisonontotaltaxwedge(asapercentageof
labourcosts) 153
7.1 Performance:short-andlong-rungrowthofGDP 163
7.A1 Adaptivityindicators:ScandinaviaversusContinental
Europe 174
10.1 Catching-upbythenewmemberstates 219
10.2 TheLisbonprocessandstructuralreformsversus
fiscalconsolidation 233
Figures
1.1 PPP-AdjustedGDPpercapitainSwedenasapercentage
ofOECDaverage,PennWorldTables(1950–92)and
OECDStatistics(1970–2004),OECD-23¼100 7
vii
viii ListofTables,FiguresandBoxes
1.2 Growthinaverageproductivityandwagegrowth
bywagepercentileinSweden(1992–2000)andthe
UnitedStates(1963–2000) 16
1.3 MeasuresofSwedishunemployment 19
1.4 ProductmixcorrelationcoefficientofSwedishexports
totheEUmarket,1987and1999,3-digitISIC 23
2.1 Configurationsofflexibilityandsecurity 36
2.2 TheDanish‘flexicuritymodel’ 39
2.3 Timingandtheacceptanceofaflexicurityarrangement 42
3.1 Long-termratingsatyearendbyS&P 60
3.2 Comparisonoftheoldandnewtaxsystems 65
3.3 Effectivetaxrates,2003and2004 66
3.4 Incometaxofindividualsanddividendtaxin
EUcountries 68
3.5 Corporateincometaxratesandtaxrevenue
inselectedEUcountries 69
3.6 CorporateincometaxrateandrevenueinSlovakia 69
3.7 Developmentofrealincomeofincomelevel
groups,2004 79
4.1 BudgetdeficitandprimarydeficitoftheCzech
Republic(asapercentageofGDP) 98
4.2 GeneralgovernmentexpendituresandtaxquotaII
(includingsocialandhealthinsurance),asapercentage
ofGDP 100
4.3 Taxquota(taxes/GDPasapercentage) 101
4.4 RealGDPgrowthintheCzechRepublic(%) 101
4.5 Rateofunemployment 106
6.1 Modelofsystemtransformation 138
6.2 Modelofsystemtransformation:Polisheconomic
coursesince1989 139
6.3 Wheretheshoepinches:percentageoffirmsidentifying
ashaving‘major’or‘verysevere’obstaclestobusiness
investmentinPoland,2005 145
6.4 Possiblescenarios(models)withinmarketand
democracy 146
6.5 Entrepreneurialspiritinselectedcountries 147
7.1 SocialexpendituresasapercentageofGDP 162
7.2 Flexiblecontracts:shareofpart-timeplusfixed-term
contracts 165
7.3 Taxwedge:differencebetweengrossandnetwages 166
7.4 Budgetsurplus/deficit 167
ListofTables,FiguresandBoxes ix
7.5 Investmentintothefuture(asapercentageofGDP:
R&D,education,ICTexpenditures) 168
7.6 Adaptivityprofiles:ScandinaviaversusContinental
Europe 169
7.7 Collectivebargainingcoverage 170
7.8 Tradeuniondensity 171
10.1 RelativeeconomicperformanceintheEUandtheUS 213
10.2 DecompositionofEUGDPpercapitarelativetotheUS 214
10.3 UnemploymentintheEUandtheUS 214
10.4 BusinessconditionsintheUSandtheEU 216
10.5 SocialconditionsintheUSandtheEU 217
10.6 PublicfinanceandgrowthintheUSandtheEU 227
10.7 Publicrevenues,growthandequality 228
Boxes
1.1 NBER–SNSReports 10
10.1 Governanceisimportant 224
10.2 Structuralreformsandbudgetaryconsolidationinthe
IntegratedGuidelinesforGrowthandJobs(2005–08) 226