Advanced Research on Asian Economy and Economies of Other Continents – Vol. 8 Resilient States from a Comparative Regional Perspective Central and Eastern Europe and Southeast Asia 8554hc_9789814417464_tp.indd 1 8/8/12 11:09 AM Advanced Research on Asian Economy and Economies of Other Continents (ISSN: 1793-0944) Series Editor: Manoranjan DUTTA (Rutgers, The State University of New Jersey, USA) Published Vol. 1 Asian Economic Cooperation in the New Millennium: China’s Economic Presence Edited by Calla Wiemer (East Asian Institute, National University of Singapore) & Heping Cao (Peking University, China) Vol. 2 China’s Industrial Revolution and Economic Presence by Manoranjan Dutta (Rutgers, The State University of New Jersey, USA) Vol. 3 International Economic Integration and Asia Edited by Michael G Plummer & Erik Jones (Johns Hopkins University SAIS-Bologna, Italy) Vol. 4 Economic Dynamism of Asia in the New Millenium: From the Asian Crisis to a New Stage of Growth Edited by Yoshinori Shimizu (Hitotsubashi University, Japan) Vol. 5 Future Perspectives on the Economic Development of Asia by John Malcolm Dowling (Singapore Management University, Singapore) Vol. 6 Asean Economic Integration: Trade, Foreign Direct Investment, and Finance by Michael G Plummer (Johns Hopkins University, SAIS-Bologna, and East-West Center, Italy) Vol. 7 EU-Asia and the Re-Polarization of the Global Economic Arena Edited by Lars Oxelheim (Lund University, Sweden & Research Institute of Industrial Economics, Sweden) Vol. 8 Resilient States from a Comparative Regional Perspective: Central and Eastern Europe and Southeast Asia by Bafoil François (Sciences Po Paris, France) Dipa - Resilient states.pmd 1 9/5/2012, 1:37 PM Advanced Research on Asian Economy and Economies of Other Continents – Vol. 8 Resilient States from a Comparative Regional Perspective Central and Eastern Europe and Southeast Asia François BAFOIL Sciences Po Paris, France World Scientific NEW JERSEY • LONDON • SINGAPORE • BEIJING • SHANGHAI • HONG KONG • TAIPEI • CHENNAI 8554hc_9789814417464_tp.indd 2 8/8/12 11:09 AM Published by World Scientific Publishing Co. Pte. Ltd. 5 Toh Tuck Link, Singapore 596224 USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601 UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE Library of Congress Cataloging-in-Publication Data Bafoil, François. Resilient states from a comparative regional perspective : Central and Eastern Europe and Southeast Asia / by François Bafoil. p. cm. -- (Advanced research on Asian economy and economics of other continents, ISSN 1793-0944 ; vol. 8) Includes bibliographical references and index. ISBN 978-9814417464 1. Europe, Central--Economic policy--1989– 2. Europe, Eastern--Economic policy--1989– 3. Southeast Asia--Economic policy. 4. Europe, Eastern--Politics and government--1989– 5. Europe, Central--Politics and government--1989– 6. Southeast Asia--Politics and government. I. Title. HC244.B323 2013 330.9--dc23 2012032308 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. 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Dipa - Resilient states.pmd 2 9/5/2012, 1:37 PM b1438 Resilient States from a Comparative Regional Perspective CONTENTS About the Author xi Introduction xiii Part I: Introduction — The Destruction of Historical States 1 Chapter 1: H istory and Geography Matter — But for What Kind of Legacies? 3 1.1. Lack of Territorial Continuity and Borders: Lack of Sovereign States 5 1.2. Territorial Imbalances: Inter- and Intra-regional Disparities 9 1.2.1. D isparities between member states and within both regions 10 1.2.2. Capital cities versus surrounding regions 11 1.2.3. Poverty 13 1.3. Social Structures: Intermediaries and Minorities 17 1.3.1. Active minorities 20 1.3.2. R oms: The combination of territorialization, poverty and political extremism 25 1.4. Conclusion 26 Chapter 2: D efining a State in Transition 31 2.1. Bureaucracies and Political Economies 33 2.2. Economic Dependency 40 2.3. Regionalism and Regionalization 44 2.4. Conclusion 48 v bb11443388__FFMM..iinndddd vv 1122//2244//22001122 11::5522::5511 PPMM b1438 Resilient States from a Comparative Regional Perspective vi Resilient States from a Comparative Regional Perspective Part I: Conclusion — Clusters of Modernized States in Southeast Asia and CEE 53 Part II: Introduction — Coherence of the Public Policies: Privatization, Regionalization, Industrial Relations 61 Chapter 3: T ransforming Economies: From Planned Economies to More Legal Rules or Towards Nomenklatura Capitalism? 67 3.1. The Theoretical Framework 69 3.1.1. Political and economic dimensions of corruption 70 3.1.2. Infant, father, client and boss: Patronage and neo-patrimonalism 72 3.2. The European Transition Period 74 3.2.1. “Red privatization” 75 3.2.2. Domestic transformation in CEE: Privatization policy 77 3.2.3. The role of the EU in extending corruption 81 3.3. Southeast Asian Political Economies, Liberalized Economies and Open Regionalism 84 3.3.1. A theory of change 84 3.3.2. “Nomenklatura capitalism” 86 3.3.3. S ingapore, the exceptional case: Rule by law and nomenklatura capitalism 89 3.4. Comparing CEE with Southeast Asia: From the Corruption to the Rule 92 3.4.1. Rule of law, rule by law 94 3.5. Conclusion 97 Chapter 4: T ransforming Polities: States, Regions and Administrations 99 4.1. Regionalization from a Comparative Perspective: Conditions for Reform and a Comparison of CEE and Southeast Asia 101 4.1.1. Varieties of EU regionalization 101 4.1.2. Southeast Asia 109 bb11443388__FFMM..iinndddd vvii 1122//2244//22001122 11::5522::5511 PPMM b1438 Resilient States from a Comparative Regional Perspective Contents vii 4.2. Cultural, Political and Economic Regionalism: Further Comparison of EU and Asian Peculiarities 110 4.2.1. The minorities: A delicate balance 112 4.2.2. T he “administrative reform”: The Asian and Balkan examples 115 4.2.3. Cambodia 117 4.2.4. The “decentralization reform”: A rare EU reform 119 4.2.5. Poland 119 4.3. Conclusion: Comparing Both Areas 120 Chapter 5: M anaging Firms by Flexibility: The Lack of Industrial Relations 125 5.1. Globalization and Flexibility 127 5.1.1. Management through flexibility 130 5.1.2. Gender issues 134 5.2. International Rules and Legal Obstacles 137 5.3. Conclusion: Comparing Both Areas 143 Part II: Conclusion 147 PART III: Introduction — EU and ASEAN Enlarged and Globalized Regions 151 Chapter 6: T he EU and ASEAN: Cohesion Policy and Export-Oriented Agreements 155 6.1. The EU Cohesion Policy 159 6.1.1. A vision of development: Efficiency and equity 159 6.1.2. A hard public debate 163 6.1.3. Strategy, objectives and tools of development 166 6.2. ASEAN: Cooperation, No Binding Rules and Step-by-Step Construction 171 6.2.1. ASEAN: A loose regional ensemble 172 6.2.2. P olitical changes and world-wide economic evolution 174 bb11443388__FFMM..iinndddd vviiii 1122//2244//22001122 11::5522::5511 PPMM b1438 Resilient States from a Comparative Regional Perspective viii Resilient States from a Comparative Regional Perspective 6.2.3. W orld-wide evolution and progressive construction: Economic exchanges and arenas 175 6.2.4. Step-by-step regional integration? 178 6.3. Comparing Both Regional Areas 180 6.3.1. Regional policy and pro-poor program: The initiative for Asian integration (IAI) 182 6.4. Conclusion 184 Chapter 7: S tate, Sub-State Designs and Cross-Border Cooperation 187 7.1. EU Cross and Trans-Border Cooperation 190 7.1.1. The initial model: La Grande region 190 7.1.2. The Euro-region 193 7.2. Beyond Enlargement Policy: Stabilizing Unsecured Borders with the ENP 198 7.2.1. “No institutions” 199 7.3. The Macro-regions 202 7.3.1. “3 nos”: No new institutions, no new rules, no new funds 204 7.4. Obstacles and Limits Provisional Conclusion 206 7.5. Southeast Asia, from Coastal Regions to the Interior 206 7.5.1. Growth poles and special economic zones 208 7.5.2. T he case of SIJORI, IMSGT: Reinforcement of the central states 211 7.5.3. History and geography matter 212 7.5.4. Asymmetric exchanges and reciprocal dependency 213 7.5.5. The case of GMS: States and a non-state actor 215 7.5.6. The 3 “Cs” 220 7.5.7. The special economic zones 221 7.6. Developing Dependencies 222 7.7. Comparison Between European and Southeastern Asian Schemes 224 7.7.1. Strategies 224 7.7.2. State aids and regional policies 225 bb11443388__FFMM..iinndddd vviiiiii 1122//2244//22001122 11::5522::5511 PPMM b1438 Resilient States from a Comparative Regional Perspective Contents ix 7.7.3. Obstacles 229 7.7.4. C ore and periphery: The “grey zones” at the local borders 231 7.8. Conclusion 233 Chapter 8: EU and ASEAN Enlargement: Enlarged Globalization Dynamics 235 8.1. Political Reasons for Enlargement 237 8.2. Beyond Economic Challenges 240 8.3. Political Challenges: Large Versus Small States 243 8.4. Lack of Hegemony 245 8.5. The End of a Dynamic? 247 8.5.1. The limits of western deepening 248 8.5.2. Agricultural policy 250 8.6. Comparing CEE and Southeast Asia 253 8.6.1. Beyond enlargement 254 8.7. Conclusion 256 Part III: Conclusion 257 General Conclusions: Types of Capitalism in Central Europe and in Southeast Asia 261 Bibliography 269 Index 291 bb11443388__FFMM..iinndddd iixx 1122//2266//22001122 1111::2244::1177 AAMM