ECONOMIC POLICY ALTERNATIVES IN TRANSITION
CEU, Economics Department


 



Lecturer: Prof. Lajos Bokros
Course: 4 credits
 
 

1/ Characteristics of communist economic management systems

· Classic communism – command economy
· Yugoslav model – workers’ self management
· Modified system (Polish-Hungarian models)

2/ Contradictions and structural weaknesses of the communist system

· Limited consumer choice
· Misallocation of resources
· Shortages and waste
· Soft budget constraint

3/ The Matrix of Structural Reforms in Transition
 
· Interlinkages between macropolicy and microeconomic change
· Gradualism versus shock therapy
· Sequencing of structural reforms
· The critical mass of structural reforms

4/ Corporate restructuring and privatization

· Proliferation of small and medium size enterprises (SMEs)
· Foreign direct and portfolio investment (FDI & FPI)
· Establishing institutions of the capital market
· Privatization of state-owned enterprises (SOEs)

5/ Special areas of restructuring and privatization

· Natural monopolies versus artificial monopolies
· Regulation and supervision of natural monopolies
· Restructuring and privatization of public utilities
· Restructuring and privatization of financial institutions

6/ Economic and social costs of postponing structural reforms

· Quasi fiscal deficit and inflation
· Slow growth and little job creation
· Weak supply side adjustment
· Domestic oligarchic structures
· WTO and EU-accession delay

7/ Public finance reforms

· Need of public finance reforms in mature market economies
· Additional problems of transitional economies
· Competition and solidarity in the age of globalization

8/ Reforming human infrastructure

· Pension system
· Health care
· Education
· Social policy
· Subsovereign finance
· Public administration

9/ Challenges of the XXI. Century

· EU-accession for South East Europe
· Euro accession for B3, Slovenia and V4
· Lisbon agenda for the enlarged EU
· Restoration of a multipolar world

10/ Case studies

· Russia – Ukraine - Belarus
· Romania – Bulgaria – Serbia
· Georgia – Armenia – Azerbaijan
· Central Asia
· B3
· V4
· Slovenia – Croatia
· Turkey