ECONOMIC DEVELOPMENT AND POLICY
Fall Term 1995
Jochen Lorentzen
Department of International Relations and European Studies
Central European University


Course Description

This course treats key economic problems and policies of Central and Eastern European (CEEC) and of Western European countries, both past and present. It considers the conditions under which industrialization took place in the 19th century and analyses the reasons for the uneven pace of development among Europe's core and periphery. The economic difficulties of CEEC and Western Europe in adjusting to a changing world economic environment in the 1970s and 1980s are explored, as are the various attempts to overcome them. Finally, policy dilemmas associated with global competition in the 1990s are briefly discussed. The course is designed to enhance a critical understanding of economic development in a historical context, and to appreciate the constraints on contemporary economic management. New attempts to theorize about economic performance within and across countries and regions are given due consideration.

The course is assessed on the basis of a mid-term paper and a final two-hour in-class exam.


Course Outline
[RR = required reading; SR = supplementary reading]

Part 1: The 1800s to World War II

Session 1. Introduction and Overview

RR: Heilbroner (1985, chaps 3,4); Strange (1988, 1-43)

Session 2. Regional Income Disparities in Europe, 1830-1970

RR: Berend and Ránki (1982, chaps 1-3); Janos (1989)
SR: Gerschenkron (1966, chaps 1,2); Kindleberger (1978, chap.7); Pollard 1988, chap.1)

Session 3. Trade and Investment between Core and Periphery
RR: Berend and Ránki (1982, chap.5)
SR: Cameron (1981); Good (1981); Kindleberger (1978, chap.3)

Session 4. Financial Capital Flows between Core and Periphery
RR: Aldcroft (1977, chaps 7,10)
SR: Aldcroft (1977, chap.12); De Cecco (1984, chaps 1,2,6); Kindleberger (1986); Strange (1985)

Session 5. First Review: Growth, Development and Capitalism in Global Perspective
RR: Jones (1988, chaps 1,2,11)


Part 2: World War II to the Present

Session 6. The Soviet Economic Model in Crisis
RR: Brada, Hewett and Wolf (1988, chap.1); Zloch-Christy (1987, 67-98)
SR: Hare (1988); Paulat (1954); Wszelaki (1951)

Session 7. Consequences of the Crisis: CEEC Indebtedness and International
Financial Institutions

RR: Brada, Hewett and Wolf (1988, chap.8); Lorentzen (1995, chap.1)
SR: Assetto (1988, chap.7); Gajdeczka (1988); Zloch-Christy (1987, chap.4)

Session 8. Economic Crisis and Solution in Western Europe
RR: Colchester and Buchan (1990, chaps 1-3); Into the Void (1992); Tsoukalis (1993, 34-76)

Session 9. Poor and Rich in Western Europe: Redistribution and Cohesion
RR: Marks (1992); Tsoukalis (1993, chap.8)

Session 10. Global Competition: Europe, North America, Japan and the NICs
RR: Holmes and Smith (1992); War of the Worlds (1994)
SR: Kramer (1993)

Session 11. Second Review: Global Competition, National Welfare and Economic Policy
RR: Stopford and Strange (1991, chaps 1,2); Yoffie (1993, chap.1)


References:
Aldcroft, Derek H. 1977. From Versailles to Wall Street 1919-1929. London: Allen Lane.
Assetto, Valerie J. 1988. The Soviet Bloc in the IMF and the IBRD. Boulder: Westview.
Berend, Ivan T. and György Ránki. 1982. The European Periphery and Industrialization 1780-1914. Cambridge: Cambridge University Press.
Brada, Joseph C., Ed A. Hewett and Thomas A. Wolf, eds. 1988. Economic Adjustment and Reform in Eastern Europe and the Soviet Union. Durham: Duke University Press.
Cameron, David R. 1992. "The 1992 Initiative: Causes and Consequences." In Euro-Politics, ed. Alberta M. Sbragia, 23-74. Washington: Brookings.
Cameron, Rondo E. 1981. "Economic Relations of France with Central and Eastern Europe, 1800-1914." Journal of European Economic History 10: 537-52.
Colchester, Nicholas and David Buchan. 1990. Europe Relaunched. London: Hutchinson.
De Cecco, Marcello. 1984. The International Gold Standard. New York: St Martin's.
Gajdeczka, Przemyslaw. 1988. "International Market Perceptions and Economic Performance: Lending to Eastern Europe." Eastern European Politics and Societies 2, no.3: 545-58.
Gerschenkron, Alexander. 1966. Economic Backwardness in Historical Perspective. Cambridge, MA: Belknap.
Good, David F. 1981. "Economic Integration and Regional Development in Austria-Hungary, 1867-1913." In Disparities in Economic Development since the Industrial Revolution. Eds Paul Bairoch and Maurice Lévy-Leboyer, 137-50. New York: St Martin's.
Hare, Paul. 1988. "Industrial Development of Hungary since World War II." Eastern European Politics and Societies 2, no.1: 115-51.
Heilbroner, Robert L. 1985. The Making of Economic Society. 7th ed. Englewood Cliffs, NJ: Prentice-Hall.
Holmes, Peter and Alasdair Smith. "1992. The EC, the USA and Japan: The Trilateral Relationship in World Context." In The European Economy, ed. David A. Dyker, 185-210. London: Longman.
Into the Void. 1992. "Survey of the European Community." The Economist, 11 July.
Janos, Andrew C. 1989. "The Politics of Backwardness in Continental Europe, 1780-1945." World Politics 41, no.3: 325-58.
Jones, Eric L. 1988. Growth Recurring. Oxford: Clarendon Press.
Kindleberger, Charles P. 1978. Economic Response. Cambridge, MA: Harvard University Press.
_______. 1986. The World in Depression, 1929-39. Berkeley: University of California.
Kramer, Heinz. 1993. "The European Community's Response to the 'New Eastern Europe'." Journal of Common Market Studies 31, no.2: 213-44.
Lorentzen, Jochen. 1995. Opening Up Hungary to the World Economy. London: Macmillan.
Marks, Gary. 1992. "Structural Policy in the European Community." In Euro-Politics, ed Alberta M. Sbragia, 191-224. Washington: Brookings.
Paulat, Vladislav J. 1954.. "Investment Policy and the Standard of Living in East Mid-European Countries.." Journal of Central European Affairs 14: 38-64.
Pollard, Sidney. 1988. Peaceful Conquest. Oxford: Oxford University Press.
Stopford, John M. and Susan Strange. 1991. Rival States, Rival Firms. Cambridge: Cambridge University Press.
Strange, Susan. 1985. "Protectionism and World Politics." International Organization 39, no.2: 233-59.
_______. 1988. States and Markets. London: Pinter.
Tsoukalis, Loukas. 1993. The New European Economy. 2nd rev. ed. Oxford: Oxford University Press.
"War of the Worlds. 1994.: Survey of the Global Economy." The Economist, 1 October.
Wszelaki, Jan. 1951. "The Rise of Industrial Middle Europe.." Foreign Affairs 30: 123-34.
Yoffie, David B., ed. 1993. Beyond Free Trade. Boston: Harvard Business School Press.
Zloch-Christy, Iliana. 1987. Debt Problems of Eastern Europe. Cambridge: Cambridge University Press.



CRC-Curriculum Resource Center
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Modified: April, 1996


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