ECONOMIC DEVELOPMENT OF PRE-WWI CENTRAL AND EASTERN EUROPE
Winter Term 1995
David F. Good
Department of History
CENTRAL EUROPEAN UNIVERSITY




Course Outline and Reading Assignments

LECTURE 1
The Relative Economic Backwardness of the Habsburg Empire

Reading:
Gross, Nachum. "Austria-Hungary in the World Economy." In: John Komlos, ed. Economic Development in the Habsburq Monarchs in the Nineteenth Century. Boulder, Colo.: East European Monographs, 1983.
Good, David. "Uneven Development in the Nineteenth Century: A Comparison of the Habsburg Empire and the United States. Journal of Economic History 46 (1986), 137-151.

I. Introduction
A. Three key issues in the modern economic history of Central and Eastern Europe:
1. Relative economic backwardness within the region and compared to Western Europe.
2. The relative importance of the state and markets in long-term economic growth.
3. The character of international economic relations-alternating phases of centralisation and decentralisation.

B. Watersheds with respect to the above issues: WWI, WWII, and the collapse of the Soviet empire.

C. Approach
1. Interaction of theory and history.
2. Use models to establish a framework for understanding history.
3. Use history to provide data and perspective for theorising about present-day issues.

D. Conceptual Framework
1. Defining and Measuring Modern Economic Growth
2. Proximate Sources of Modern Economic Growth
3. Timing: Continuity V5. Discontinuity


II. The Timing of Economic Growth in the Habsburg Empire

1. The West-East Gradient in the 18th C. within Europe and within the Empire.
2. The Beginning of Sustained Growth in the Western Lands in the Early l9th C.
3. The Delayed Spread of Economic Growth Eastward.
4. Quantitative Evidence on Income Disparities within the Habsburg Empire and Compared to Europe: Levels in 1870, Convergence to 1910, and Levels in 1910.


LECTURE 2
The State and Economic Development in the Habsburg Empire: Two Periods of Reform

Reading
Komlos, John. Stature. Nutrition. and Economic Development in the Eighteenth-Century Habsburg Monarchy: The 'Austrian' Model of the Industrial Revolution. Princeton: Princeton University Press, 1990: Chap. 3, pp. 119-166.
Rudolph, Richard. "Social Structure and the Beginning of Austrian Economic Growth." In: John Komlos, ed. Economic Development in the Habsburg Monarchy and in the Successor States. Boulder, Colo.: East European Monographs, 1990.
Huertas, Thomas. Economic Growth and Economic Policy in a Multinational Setting. New York: Arno Press, 1977: Chap. III, pp. 36-50.

I. Theoretical Overview
A. The Foundations of Economic Policy.
1. Society-centered Views of the State.
2. State-centered Views of the State.

B. The State and Economic Growth: Mechanisms
1. Budgetary Policy: Taxing and Spending
2. Institutional Change: The "Rules of the Game."

II. The Habsburg Case: "Reform from Above" Tradition
A. Three Turning Points -- Reflection of State-centered Views.
B. The Mid-18th C. Reforms.
C. The Post-1848 Reforms.
D. The Compromise of 1867.

III. The Habsburg Case: Cliometric Approaches
A. Essentially a Society-Centered Approach.
B. Quantitative Evidence at the Macro and Micro Levels.
C. Qualitative Evidence: The Size of the State Sector and the Character of Policy Changes.


LECTURE 3
The Political Economy of Imperial Collapse

Reading
Motyl, Alexander. "From Imperial Decay to Imperial Collapse: The Fall of the Soviet Empire in Comparative Perspective." In: Richard Rudolph and David F. Good, eds. Nationalism and Empire: The Habsburg Empire and the Soviet Union. St. Martin's Press, 1992: pp. 15-43
Gerschenkron, Alexander. An Economic Spurt that Failed. Princeton, N.J.: Princeton University Press, 1973: Chap. 2, pp. 45-84
Marz, Eduard. Austrian Banking and Financial Policy: Creditanstalt at a Turning Point. 1913-1923. New York: St. Martin's Press, 1984: Part III, Chaps. 1 and 2, pp. 163-204.

I. The Debate on Imperial Collapse
A. Nationalities Conflict
B. The Imperial Structure
C. Defeat in World War I
D. The Role of Economic Forces

II. The Habsburg Empire as an Economic Union
A. The Institutional Preconditions
B. Evidence on Economic Integration
C. The Importance of the Political Context

III. The Habsburg Economy and Imperial Collapse: Lines of Possible Inquiry
A. The Economy and the Nationalities Conflict
B. The Economy and the Imperial Structure
C. The Economy and World War I



SUPPLEMENTARY ENGLISH-LANGUAGE READING LIST
Berend, Ivan and Gyorgy Ranki. Hungary: A Century of Economic Development. New York: Barnes and Noble, 1974.
Berend, Ivan and Gyorgy Ranki. Economic Development in East-Central Europe in the l9th and 2Oth Centuries. New York: Columbia University Press, 1974.
Berend, Ivan and Gyorgy Ranki. Underdevelopment and Economic Growth: Studies in Hungarian Social and Economic History. Budapest: Akademiai Kiado, 1979. Contains: Berend and Ranki. "Economic Factors in Nationalism: A Case Study of Hungary 18671914."
Chirot, Daniel, ed. The Origins of Backwardness in Eastern Europe: Economics and Politics from the Middle Ages until the Earls Twentieth Century (Berkeley and London, 1989), pp. 177-209.
Dickson, P.G.M., Finance and Government under Maria Theresa. 1740-1780. 2 vols. Oxford: Oxford University Press, 1987.
Eddie, Scott. "Economic Policy and Economic Development in Austria-Hungary, 18671913." In: Cambridge Economic History of Europe. Cambridge: Cambridge University Press, vol. VIII, 1989.
Gerschenkron, Alexander. An Economic Spurt that Failed: Four Lectures in Austrian History. Princeton, N. J.: Princeton University Press, 1977.
Good, David. The Economic Rise of the Habsburg Empire 1750-1914. Berkeley: University of California Press, 1984.
Good, David. "Uneven Development in the Nineteenth Century: A Comparison of the Habsburg Empire and the United States. Journal of Economic History 46 (1986), 137-151.
Good, David F., ed., Economic Transformations in East-Central Europe: Legacies from the Past and Prospects for the Future London: Routledge, 1994.
Grab, Alexander I., "The Politics of Subsistence: The Liberalization of Grain Commerce in Austrian Lombardy under Enlightened Despotism," Journal of Modern History, 57 (2), (1985), 185-210.
Gross, Nachum, "Industrialization in Austria in the Nineteenth Century,"(Ph.D. diss, University of California, Berkeley, 1966).
Hanak, Peter. "Hungary in the Austro-Hungarian Monarchy." Austrian History Yearbook III.1 (1967): 284-302.
Huertas, Thomas. Economic Growth and Economic Policy in a Multinational Setting. New York: Arno Press, 1977.
Janos, Andrew C.. The Politics of Backwardness in Hungary 1825-1945. Princeton: Princeton University Press, 1982.
Janos, A., "The Politics of Backwardness in Continental Europe, 1780-1945," World Politics, vol. XLI, no. 3, April 1989, 325-358.
Katus, Laszlo. "Economic Growth in Hungary During the Age of Dualism 1867-1913: A Quantitative Analysis." In E. Pamlenyi, ed. Social and Economic Researches on the History of East-Central Europe. Budapest: Akademiai Kiado, 1970.
Klima, Arnost. "The Role of Rural Domestic Industry in Bohemia in the 18th Century." Economic History Review 2nd ser., 27, 48-56, 1974.
Komlos, John, ed. Economic Development in the Habsburg Monarchy in the Nineteenth Century. Boulder, Colo.: East European Monographs, 1983. Contains:
Eddie, Scott. "Agriculture as a Source of Labor Supply: Conjecture from the History of Hungary, 1870-1913."
Gross, Nachum. "Austria-Hungary in the World Economy."
Katus, Laszlo. "Transportation Revolution and Economic Growth in Hungary."
Klima, Arnost. "Industrial Growth and Entrepreneurship in the Early Stages of Industrialization in the Czech Lands."
Rudolph, Richard, "Economic Revolution in Austria? The Meaning of 1848 in Austrian Economic History."
Komlos, John. The Habsburg Monarchy as a Customs Union: Economic Development in Austria-Hungary in the Nineteenth-Century. Princeton: Princeton University Press, 1983.
Komlos, John, ed. Economic Development in the Habsburg Monarchy and in the Successor States. Boulder, Colo.: East European Monographs, 1990. Contains:
Carter, F..W. "The Industrial Development of Prague, 1800-1850."
Gross, Nachum. "Economic Growth and the Consumption of Coal in Austria and Hungary 1831-1913."
Rudolph, Richard. "Social Structure and the Beginning of Austrian Economic Growth."
Sandgruber, Roman. "The Industrial Tradition in Lower Austria."
Komlos, John. Stature. Nutrition. and Economic Development in the Eighteenth-Century Habsburg Monarchy: The 'Austrian' Model of the Industrial Revolution. Princeton: Princeton University Press, 1990.
Koropeckyj, I. S., ed. Ukrainian Economic History: Interpretive Essays. Cambridge, Mass: Harvard University Press, 1991. Contains: Rudolph, Richard. "The East European Peasant Household and the Beginnings of Industry: East Galicia 1786-1914."
Lampe, John and Jackson, Marvin. Balkan Economic History 1550-1950: From Imperial Borderlands to Developing Nations. Bloomington, Ind.: Indiana University Press, 1982.
Marz, Eduard. Austrian Banking and Financial Policy: Creditanstalt at a Turning Point. 1913-1923. New York: St. Martin's Press, 1984.
Matis, Herbert, ed. The Economic Development of Austria Since 1870. London: Edward Elgar, 1994. Contains:
Mosser, Alois. "Concentration and Finance of Austrian Industrial Combines, 1880-1914."
Sandgruber, Roman. "The Electrical Century: The Beginnings of Electricity Supply in Austria."
Motyl, Alexander. "From Imperial Decay to Imperial Collapse: The Fall of the Soviet Empire in Comparative Perspective." In: Rudolph and Good, eds. Nationalism and Empire: 15-43
Palairet, Michael, "The Habsburg Industrial Achievement in Bosnia-Hercegovina, 1878-1914: An Economic Spurt That Succeeded?" Austrian History Yearbook, 24 (1993), 133-152.
Purs, Jaroslav. "The Industrial Revolution in the Czech Lands." Historica 2 (l960), 183-212.
Rudolph, Richard L. Banking and Industrialization in Austria Hungary: The Role of Banks in the Industrialization of the Czech Crown lands. 1873-1914. Cambridge: Cambridge University Press, 1976.
Rudolph, Richard L. "The Pattern of Austrian Industrial Growth from the Eighteenth to the Early Twentieth Century." Austrian History Yearbook, Vol. XI (1975): 3-25.
Rudolph, Richard L. and David F. Good, eds. Nationalism and Empire: The Habsburg Monarchy and the Soviet Union. New York, St. Martin's Press, 1992.




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