Dabrowski, Marek and Radziwill, Artur (2007): Regional vs. Global Public Goods: The Case of Post-Communist Transition. Published in: CASE Network Studies and Analyses No. 336 (February 2007)
Download (311kB) | Preview
The paper discusses the role of regional public goods vs. global goods in influencing postcommunist transition in Central and Eastern Europe and former USSR with special attention given to three particular factors: (i) external anchoring of national reform process; (ii) international trade arrangements and (iii) international financial stability.
Our main finding is that that the EU, through the Eastern enlargement process, acted as the very effective regional public (club) good provider, whose influence across time and countries was correlated with better transition outcomes. In particular, the consolidation phase in democratization, institution building and structural transformation was successful in countries reforming under EU accession conditionality, but not under other forms of conditionality provided, for example, by the Bretton Woods institutions. In the area of trade, gains from WTO accession were dwarfed by the impact of the opening of the EU trading block for accession countries. Finally, countries participating in EU integration showed more discipline in maintaining macroeconomic stability, while IMF programs were less effective in inducing stability in the absence of the European factor.
This the main reason why CIS countries which got neither the EU accession perspective, nor even trade liberalization offer on the EU lag behind Central European, Baltic and Balkan countries in terms of democratization, rule of law, institutional stability and market-oriented economic reforms. However, due to observed 'enlargement fatigue' in the incumbent EU, the future attractiveness of the EU integration perspective and strength of the accession associated incentive system (in respect to countries of Western Balkans, CIS and Turkey) comes under question. There is also unclear whether European experience in providing regional public goods can be easily repeated in other geographic regions and to which extended can be used by the providers of global public goods.
|Item Type:||MPRA Paper|
|Original Title:||Regional vs. Global Public Goods: The Case of Post-Communist Transition|
|Keywords:||public goods, post-communist transition, European integration, trade liberalization, international financial stability|
|Subjects:||F - International Economics > F1 - Trade > F15 - Economic Integration
F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations
F - International Economics > F5 - International Relations, National Security, and International Political Economy > F59 - Other
H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods
F - International Economics > F5 - International Relations, National Security, and International Political Economy > F53 - International Agreements and Observance ; International Organizations
F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions
|Depositing User:||Marek Dabrowski|
|Date Deposited:||07. Dec 2008 08:35|
|Last Modified:||22. Apr 2015 11:30|
Antczak, R., Markiewicz, M. & Radziwill A. (2003): The Failure of the IMF In Preventing Currency Crises In CIS Countries, in: Dabrowski, M., ed.: Currency Crises in Emerging Markets, Kluwer Academic Publishers, Boston/Dordrecht/London.
Aslund, A. (1994): Lessons of the First Four Years of Systemic Change in Eastern Europe, Journal of Comparative Economics, Vol. 19, No. 1.
Aslund, A. (2002): Building Capitalism: The Transformation of the Former Soviet Bloc, Cambridge University Press.
Aslund, A., Boone, P. & Johnson, S. (1996): How to Stabilize: Lessons from Post-communist Countries, Brookings Papers on Economic Activity, Vol. I, pp. 217-313.
Balcerowicz, L. (1994): Understanding Post-communist Transitions, Journal of Democracy, Vol.5, No.4, October
Balcerowicz, L. & Gelb, A. (1995): Macropolicies in Transition to a Market Economy: A Three-Year Perspective, CASE Center for Social and Economic Research, Warsaw, Studies and Analyses, No. 33.
Berglof, E. & Bolton, P. (2002), The Great Divide and Beyond – Financial Architecture in Transition, Journal of Economic Perspectives, Vol. 16, No. 1.
Berglof, E. & Roland, G. (1997): The EU as an ‘Outside Anchor’ for Transition Reforms”, in: A Bigger and Better Europe?, Final Report to the Swedish Government from the Committee on the Economic Effects of EU Enlargement, Stockholm.
Buchanan, J. M. (1965): An Economic Theory of Clubs, Economica 32 (125) 1-14.
Calvo, G.A. & Reinhart, C.M. (2000): Fear of Floating, NBER Working Paper, No. 7993, November.
Casella, A. & Eichengreen, B. (1996): Can foreign aid accelerate stabilization?, Economic Journal, Vol. 106 (436).
Coricelli, F. (2005): Design and Implementation of the Stability and Growth Pact: The Perspective of New Member States, CASE Center for Social and Economic Research, Warsaw, Studies and Analyses, No. 304.
Cornes, R. & Sandler, T. (1996): The Theory of Externalities, Public Goods and Club Goods, Cambridge University Press.
Dabrowski, M. (1996): Different Strategies of Transition to a Market Economy: How do They Work in Practice?, The World Bank, Policy Research Working Paper, No. 1579, March.
Dabrowski, M. (1997): The Reasons for the Collapse of the Ruble Zone, in: L. T. Orlowski and D. Salvatore (eds.): Trade and Payments in Central and Eastern Europe’s Transforming Economies, Greenwood Press.
Dabrowski, M. (1998): Western Aid Conditionality and the Post-Communist Transition 1990-1994, Journal of Policy Reform, Vol. 2, pp. 169-193
Dabrowski, M., Gomulka, S. & Rostowski, J. (2001): Whence Reform? A Critique of the Stiglitz Perspective, The Journal of Economic Policy Reform, Vol. 4, issue 4, pp. 291-324.
Dabrowski, M., and R. Gortat (2002): Political Determinants of Economic Reforms in Former Communist Countries, CASE Center for Social and Economic Research, Warsaw, Studies and Analyses, No. 242
Dabrowski, M., ed. (2003): Currency Crises in Emerging Markets, Kluwer Academic Publishers, Boston/ Dordrecht/ London.
De Melo, M., Denizer, C. & Gelb, A. (1996): From Plan to Market: The Patterns of Transition, The World Bank, Policy Research Working Paper, No. 1564, January.
Dewatripont, M. & Roland, G. (1992): Economic Reform and Dynamic Political Constraints, Review of Economic Studies, vol. 59(4), pp. 703-30.
Drazen, A. & Isard, P. (2004): Can Public Discussion Enhance Program Ownership, IMF Working Paper, WP/04/163. EBRD (1999): Transition Report 1999, European Bank for Reconstruction and Development.
EBRD (2000): Transition Report 2000, European Bank for Reconstruction and Development.
Eichengreen, B. & Hausmann, R. (1999): Exchange Rates and Financial Fragility, NBER Working Paper, No. 7418, November.
Easterly, W. (2001): The Elusive Quest for Growth: Economists’ Adventures and Misadventures in the Tropics, The MIT Press, Cambridge, Ma & London, England.
Fernandez, R. and Rodrik, D. (1991): Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty, American Economic Review, vol. 81, pp. 1146-1155.
Fischer, S., Sahay, R. & Vegh, C.A. (1996): Stabilization and Growth in Transition Economies: The Early Experience, Journal of Economic Perspectives, vol. 10, No. 2, pp. 45-66
Fischer, S. & Sahay, R. (2001): The transition economies after ten years, in: L.T. Orlowski (ed.): Transition and Growth in Post-Communist Countries, The Ten-year Experience, Edward Elgar Publishing Ltd., Cheltenham, UK; Northampton, MA, USA.
Fukuyama, F. (2004): State Building: Governance and World Order in the 21st Century, Cornell University Press, Ithaca.
Gomulka, S. (1995): The IMF-Supported Programs of Poland and Russia, 1990-1994: Principles, Errors and Results, CASE Center for Social and Economic Research, Warsaw, Studies and Analyses, No. 36.
Gotisan, I., Kostrzewa, K. & Osmochescu, E. (2004), Polish Best Practices on European Integration, CASE Center for Social and Economic Research, Studies and Analyses, No. 302.
Havrylyshyn, O., Wolf, T., Berengaut, J., Castello-Branco, M., van Rooden, R. & Mercer-Blackman, V. (2000): Growth Experience in Transition Countries, 90-98, IMF Occasional Paper, No. 184, April 19.
IMF (1987): Theoretical Aspects of the Design of Fund-Supported Adjustment Programs, IMF Occasional Paper, No. 55, September.
IMF (2001): Structural Conditionality in Fund-Supported Programs, International Monetary Fund, February.
Kaul, I. (2002): What is a public good?¸ Le Monde diplomatique, English edition, June, http://mondediplo.com/2000/06/15publicgood
Lipton, D. & Sachs, J. (1992): Prospect for Russia’s Economic Reforms, Brooking Papers on Economic Activity, 1992: 2.
Mau, V. (2000): Russian Economic Reforms as Seen by an Insider: Success or Failure?, Royal Institute of International Affairs, London, U.K.
McCallum, B.T. (1999): Theoretical Issues Pertaining to Monetary Unions, NBER Working Paper, No. 7393, October.
Milcher, S. & Slay, B. (2005): The economics of the 'European Neighbourhood Policy': An initial assessment, CASE – Center for Social and Economic Research, Studies and Analyses, No. 291.
Mizsei, K. (2004): Central European Experience and the CIS, in: Dabrowski M., Slay, B. & Neneman, J., eds.: Beyond Transition. Development Perspectives and Dilemmas, Ashgate, Aldershot, England.
McQuillan (1998): The Case against the International Monetary Fund, Hoover Institution, Essays in Public Policy, November.
Mogilevsky, R. (2004): CIS-7 Perspective on Trade with EU in the Context of EU Enlargement, CASE Center for Social and Economic Research, Warsaw, Studies and Analyses, No. 282.
Obstfeld, M. & Rogoff, K. (1995): The Mirage of Fixed Exchange Rates, NBER Working Paper, No. 5191.
ODI (2000): Summary of meeting held at the Overseas Development Institute, November, http://www.odi.org.uk/speeches/booth5.html
Odling-Smee, J., & Pastor, G. (2001): The IMF and the Ruble Area, 1991-93, IMF Working Paper, 01/101, August.
Paczynski, W. (2006): ECB Decision-Making in an Enlarged EMU, in: Dabrowski, M. & Rostowski, J. (eds.): The Eastern Enlargement of the Eurozone, Springer.
Rawdanowicz, L. (2003): Propagation of Currency Crises – The Case of the Russian Crisis, in: Dabrowski, M. (ed.): Currency Crises in Emerging Markets, Kluwer Academic Publishers, Boston/ Dordrecht/ London.
Rodrik, D. (1996): Understanding Economic Policy Reform, Journal of Economic Literature, Vol. 34, No. 1.
Rodrik, D. (2004): Getting Institutions Right, CESifo DICE Report, No. 2, February.
Roland, G. (2000): Transition and Economics: Politics, Markets and Firms, MIT Press, Cambridge, Ma.
Roland, G. (2005): After Enlargement: Institutional Achievements and Prospects in the New Member States, in: Detken, C., Gaspar, V. & Noblet, G. (eds.): The New EU Member States: Convergence and Stability, European Central Bank, Frankfurt am Main, April.
Roland, G. & Verdier, T. (2003): Law Enforcement and Transition, European Economic Review, vol. 47.
Rostowski, J. (2004): The Stability and Growth Pact - Essential and Unfeasible, CASE Center for Social and Economic Research, Warsaw, Studies and Analyses, No. 275.
Sachs, J. (1994): Life in the Economic Emergency Room, in: Williamson, J. ed. (1994), The Political Economy of Policy Reform, Institute for International Economics.
Sachs, J. & Lipton, D. (1993): Remaining Steps to a market-Based Monetary System, in: Aslund, A. & Layard, R., eds.: Changing the Economic System in Russia, Pinter Publishers, London.
Sandler, T. & Hartley, K. (1999): The Political Economy of NATO. Past, present, and into the 21st Century, Cambridge University Press.
Shleifer, A., Murphy, K., & Vishny, R. (1993): Why Is Rent Seeking so Costly for Growth, American Economic Review Papers and Proceedings, May.
Samuelson, P. A. (1954): The Pure Theory of Public Expenditure, Review of Economics and Statistics, 36 (4). Stiglitz, J. (1999a): Whither Reform?, paper for 1999 ABCDE Conference, Washington DC: World Bank. http://www.worldbank.org/knowledge/chiefecon
Stiglitz, J. (1999b): Quis Custodiet Ipsos Custodes? (Who is to Guard the Guardians themselves?), Challenge, 42 (6), November/December, pp. 26-67.
Tanzi, V. (2005): Fiscal Policy and Fiscal Rules in the European Union, CASE Center for Social and Economic Research, Warsaw, Studies and Analyses, No. 301.
WEO (2000): World Economic Outlook, International Monetary Fund, April.
World Bank (2002): Transition. The First Ten Years. Analysis and Lessons for Eastern Europe and the Former Soviet Union, World Bank.
Wyplosz, Ch. (2005): Has Europe Lost its Heart?, CASE Center for Social and Economic Research, Warsaw, Studies and Analyses, No. 293.