The Aftermath of ‘Real Existing Socialism’ in Eastern Europe: Volume 1: Between Western Europe and East Asia

355 Pages·1996·17.36 MB·English

by  Jacques Hersh

INTERNATIONAL POLITICAL ECONOMY SERIES
General Editor: Timothy M. Shaw, Professor of Political Science and International
Development Studies, and Director of the Centre for Foreign Policy Studies,
Dalhousie University, Nova Scotia, Canada
Recent titles include:
Pradeep Agrawal, Subir V. Gokam, Veena Mishra, Kirit S. Parikh and Kunal Sen
ECONOMIC RESTRUCTURING IN EAST ASIA AND INDIA: Perspectives
on Policy Reform
Solon L. Barraclough and Krishna B. Ghimire
FORESTS AND LIVELIHOODS: The Social Dynamics of Deforestation in
Developing Countries
Kathleen Barry (editor)
VIETNAM'S WOMEN IN TRANSITION
Jorge Rodríguez Beruff and Humberto García Muñiz (editors)
SECURITY PROBLEMS AND POLICIES IN THE POST-COLD WAR
CARIBBEAN
Ruud Buitelaar and Pitou van Dijck (editors)
LATIN AMERICA'S NEW INSERTION IN THE WORLD ECONOMY:
Towards Systemic Competitiveness in Small Economies
Steve Chan (editor)
FOREIGN DIRECT INVESTMENT IN A CHANGING GLOBAL POLITICAL
ECONOMY
William D. Coleman
FINANCIAL SERVICES, GLOBALIZATION AND DOMESTIC POLICY
CHANGE: A Comparison of North America and the European Union
Paul Cook and Frederick Nixson (editors)
THE MOVE TO THE MARKET? Trade and Industry Policy Reform in
Transitional Economies
Frederic C. Deyo (editor)
SOCIAL RECONSTRUCTIONS OF THE WORLD AUTOMOBILE
INDUSTRY: Competition, Power and Industrial Flexibility
Noeleen Heyzer, James V. Riker and Antonio B. Quizon (editors)
GOVERNMENT-NGO RELATIONS IN ASIA: Prospects and Challenges for
People-Centred Development
David Kowalewski
GLOBAL ESTABLISHMENT: The Political Economy of North/ Asian Networks
Anne Lorentzen and Marianne Rostgaard (editors)
THE AFTERMATH OF 'REAL EXISTING SOCIALISM' IN EASTERN
EUROPE, Volume 2: People and Technology in the Process of Transition
Laura Macdonald
SUPPORTING CIVIL SOCIETY: The Political Role of Non-Governmental
Organizations in Central America
Gary McMahon (editor)
LESSONS IN ECONOMIC POLICY FOR EASTERN EUROPE FROM
LATIN AMERICA
David B. Moore and Gerald J. Schmitz (editors)
DEBATING DEVELOPMENT DISCOURSE: Institutional and Popular
Perspectives
Juan Antonio Morales and Gary McMahon (editors)
ECONOMIC POLICY AND THE TRANSITION TO DEMOCRACY: The Latin
American Experience
Paul J. Nelson
THE WORLD BANK AND NON-GOVERNMENTAL ORGANIZATIONS:
The Limits of Apolitical Development
Archibald R. M. Ritter and John M. Kirk (editors)
CUBA IN THE INTERNATIONAL SYSTEM: Normalization and Integration
Ann Seidman and Robert B. Seidman
STATE AND LAW IN THE DEVELOPMENT PROCESS: Problem-Solving and
Institutional Change in the Third World
Tor Skålnes
THE POLITICS OF ECONOMIC REFORM IN ZIMBABWE: Continuity and
Change in Development
John Sorenson (editor)
DISASTER AND DEVELOPMENT IN THE HORN OF AFRICA
Howard Stein (editor)
ASIAN INDUSTRIALIZATION AND AFRICA: Studies in Policy Alternatives
to Structural Adjustment
Geoffrey R. D. Underhill (editor)
THE NEW WORLD ORDER IN INTERNATIONAL FINANCE
David Wurfel and Bruce Burton (editors)
SOUTHEAST ASIA IN THE NEW WORLD ORDER: The Political Economy
of a Dynamic Region
The Aftermath of
'Real Existing Socialism'
in Eastern Europe
Volume 1: Between Western Europe and
East Asia
Edited by
Jacques Hersh
Professor, Department of Development and Planning
Aalborg University, Denmark
and
Johannes Dragsbaek Schmidt
Research Fellow, Department of Development and Planning
Aalborg University, Denmark
First published in Great Britain 1996 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS
and London
Companies and representatives
throughout the world
A catalogue record for this book is available
from the British Library.
ISBN 978-1-349-14157-9 ISBN 978-1-349-14155-5 (eBook)
DOI 10.1007/978-1-349-14155-5
First published in the United States of America 1996 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue,
New York, N.Y. 10010
ISBN 978-0-312-16399-0
Library of Congress Cataloging-in-Publication Data
The aftermath of 'real existing socialism' in Eastern Europe /edited
by Jacques Hersh and Johannes Dragsbaek Schmidt.
p. cm.-(Iternational political economy series)
Includes bibliographical references and index.
Contents: v. 1. Between Western Europe and East Asia
ISBN 978-0-312-16399-0 (cloth)
1. Europe, Eastern-Economicconditions-1989- 2. Europe,
Eastern-Economic policy-1989- 3. Post-communism-Europe-Eastern.
4. Socialism-East Asia. 5. Capitalism-East Asia. 6. Europe,
Eastern-Social conditions-1989- I. Hersh, Jacques. II. Schmidt
Johannes Dragsbaek, 1960- . III. Series.
HC244.A5193 1996
338.947-dc20 96-25600
CIP
Selection, editorial matter and chapters 1 and 17 © Jacques Hersh and Johannes
Dragsbaek Schmidt 1996
Parts I-V, (excluding Introductions to Parts) © Macmillan Press Ltd 1996
Softcover reprint of the hardcover 1st edition 1996
All rights reserved. No reproduction, copy or transmission of
this publication may be made without written permission.
No paragraph of this publication may be reproduced, copied or
transmitted save with written permission or in accordance with
the provisions of the Copyright, Designs and Patents Act 1988,
or under the terms of any licence permitting limited copying
issued by the Copyright Licensing Agency, 90 Tottenham Court
Road, London W1P 9HE.
Any person who does any unauthorised act in relation to this
publication may be liable to criminal prosecution and civil
claims for damages.
10 9 8 7 6 5 4 3 2 1
05 04 03 02 01 00 99 98 97 96
Contents
List of Tables, Figures and Map vm
Dedication to Alec Nove by Hans Aage, Andreas Joergensen,
Jacques Hersh and Johannes Dragsbaek Schmidt x
Preface and Acknowledgements xv
Notes on the Contributors xvm
List of Abbreviations xxii
Map and Selected Data xxiv
After the Meltdown of Soviet-Type Socialism:
Presenting the Issues 2
Jacques Hersh and Johannes Dragsbaek Schmidt
Part I Reassessing Order: Changing Capitalist Institutions
and Structures
2 Introduction to Part I 19
Jacques Hersh and Johannes Dragsbaek Schmidt
2 The Role of the Public Sector: A Critique of Libertarianism 22
Alec Nove
3 The Thirdworldization of Russia and Eastern Europe 39
Andre Gunder Frank
4 Eastern Europe in a Developmental Perspective 62
Louis Emmerij
Part II Liberalization and the Uneven Distribution of Gains
in Eastern Europe
5 Introduction to Part II 85
Jacques Hersh and Johannes Dragsbaek Schmidt
v
VI Contents
6 The Emerging Russian Elite: Old and New 91
Olga Kryshtanovskaya
7 The State and Civil Society: Priorities During the
First Stage of Transition 122
llze Ostrovska
8 The Trade-Off: Problems of Accumulation and Legitimation
of Emerging Capitalism 136
Vojmir Franicevic
Part III From Post-Communism to Command Capitalism'!
9 Introduction to Part III 161
Jacques Hersh and Johannes Dragsbaek Schmidt
10 Reforms in Eastern Europe: Lessons from the East Asian
Capitalist Model 165
Robert Wade
II Learning From South Korea: The Transformation of the
Polish Economy 181
Ryszard Lawniczak
12 Models of Dirigisme in East Asia: Perspectives for Eastern
Europe 196
Johannes Dragsbaek Schmidt
Part IV East Asian Experiences with Market Socialism
13 Introduction to Part IV 219
Jacques Hersh and Johannes Dragsbaek Schmidt
14 The Role of the State in Transitional Economies: The Asian
Approach and its Implications for Eastern Europe 224
Pradumna B. Rana
15 Agrarian Structures, Property Rights and Transition to a
Market Economy in China and the Former Soviet Union 247
Xiaolin Pei and Christer Gunnarsson
Contents vii
16 Economic Diversification and Growth in Rural China:
An Anatomy of a 'Socialist' Success Story 269
Per Ronnaas
17 East Europe: Between Western Europe and
East Asia. Squaring the Circle? 293
Jacques Hersh and Johannes Drugsbaek Schmidt
Bibliography 301
Index 315
List of Tables, Figures and
Map
Tables
A Human development index XXV
B Basic indicators xxvi
c
Economic indicators of successor states of the USSR,
1992-93 XXVII
D China: selected economic indicators, 1991-94 XXVIII
E Assumptions underlying the projections xxviii
F Projections of growth in GDP per capita and exports
by region XXIX
G Projections of wages of skilled and unskilled workers
by region XXIX
H Privatization of state-owned enterprises, 1980-91 xxix
6.1 Dynamics of the average age of the elite 111
6.2 Proportion of women in the elite 112
6.3 Proportion of persons of village origin in the elite 113
6.4 Proportion of persons of non-Russian nationality
in the elite 113
6.5 Proportion of persons with a higher education in the elite 115
6.6 Proportion of persons with a scientific degree in the elite 115
6.7 Proportion of 'technocrats' within the elite 115
6.8 Proportion of economists and graduates in law within
the elite 117
6.9 Proportion of persons who were not earlier part of the
nomenklatura I 17
6.10 Duration of the Yeltsin cohort's membership of the elite 118
6.1 1 Proportion of recruits for the elite from administrative
Soviet organs 1 18
6.12 The recruiting of 'the Yeltsin cohort' from the old
nomenklatura's various sub-elites I 19
6.13 The Yeltsin cohort's recruiting from the old
nomenklatura's top strata 119
14.1 Size of the state sector in selected countries 229
14.2 Status of economic reforms in the TEAs 232
VIII
List of Tables, Figures and Map ix
14.3 New reform measures announced in China on
I January 1994 243
14.4 Two-track enterprise policy in a model transitional
economy 244
16.1 Development of number and output value of commune
and brigade industry 275
16.2 Development of rural non-farm enterprises, 1978-90 286
16.3 Development of the rural economy, 1978-90 288
Figures
A Share of world output xxvi
B Share of world saving xxvi
7 .I Scheme of crime syndicate activities 130
8.1 Liberal-democratic ideal of East and Central Europe 137
I 0.1 US patenting activities by developing countries 166
14.1 Growth of GOP in TEAs and Eastern Europe, pre-reform
and post-reform 227
Map
A East Europe: between Western Europe and East Asia xxiv