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Subject data sheet

Development and Crises in East Central Europe

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Code: 4OG33NAK33M
Name: Development and Crises in East Central Europe
Number of hours per semester: 24+24
Credits: 6
Fall/Spring: Fall
Language: English
Prerequisites: -
Course type: lecture and seminar
Department: Összehasonlító és Intézményi Gazdaságtan Tanszék
A Course leader: Medve-Bálint Gergő

Course description: The course discusses some key aspects of post-communist transformation in East Central Europe (ECE) by focusing on the developmental effects of transnational influences and domestic political choices. The course addresses a popular issue in European studies: how the complex interactions of transnational (mostly EU-related) and domestic (mostly state-level) actors produce different developmental pathways and how those trajectories determine future developments. The course seeks to answer two overarching questions: why is ECE persistently lagging behind Western Europe and why is there so much variation across ECE in policy fields that are most decisive for economic development?

The first part of the course provides the theoretical foundations which serve as the basic reference point to which we will return in the subsequent classes. In the second half of the semester the course explores some key phenomena that have recently characterized the economic transformation of ECE. The key concepts that we will frequently refer to and empirically examine are institutional continuity and change, path-dependence, and political and economic legacies.

During the lectures we will discuss the assigned readings and their broader implications. The goal is to reflect on various theoretical and empirical perspectives that the readings introduce and to develop a critical understanding of East Central Europe’s recent economic development. Students are therefore strongly expected to prepare in advance for each class by doing the reading assignments that will be available on moodle. In the seminars students will engage in empirical materials by solving several in-class exercises and group work that aim to reflect on the topic of the lectures. At the end of the course students should be able to identify the main theoretical propositions of the literature and formulate their own, informed view on East Central Europe’s development.

Assessment, grading: To be able to follow the course and actively participate in it, a good command of English (advanced level) is expected from the students. It is vital that students prepare in advance and read the materials before each class.
The grade is composed of the following elements:

- In-class activity (10 points)
- First position paper (10 points) – due on 15 October
- Second position paper (20 points) – due on 26 November
- Written exam (40 points)

Grading
0 – 39 : fail
40 – 49 : sufficient
50 – 59 : satisfactory
60 – 69 : good
70 – : excellent

Aims and objectives and description of the course: 
(1) Introduction. What are the main attributes of economic development? Is it justifiable to take Western Europe as a reference point for East Central Europe’s development path? Discussion about some key indicators of the developmental gap between East Central Europe and Western Europe

(2) What role do institutions play in a political-economic system? What does path-dependence mean? Why are transnational influences relevant for the recent economic history of the region?

Required: Hall and Taylor (1996); Pierson (2000)

(3) What are the origins of East Central Europe’s economic backwardness?

Required: Janos (1989)

Suggested: Brenner (1989); Janos (2001); Offe and Adler (1991)

(4) What is the institutional heritage of the socialist system? What does regime change mean and what domestic factors have shaped the transformation of ECE countries?

Required: Bunce (1999)

Suggested: Kornai (2000); Roland (2002); Ekiert (2003)

(5) How did external factors such as the European Union influence regime change in East Central Europe? Can we consider ECE as the EU’s backyard?

Required: Vachudova (2005), Chapter 1 and 3

Suggested: Bruszt (2002); Bruszt and McDermott (2012); Jacoby (2010); Schimmelfennig and Sedelmeier (2005)

(6) What are the distinct features of the emerging capitalist regimes in ECE?

Required: Bohle and Greskovits (2012), Chapter 1

Suggested: Myant and Drahokoupil (2011, 2012); Nölke and Vliegenthart (2009)

(7) Why is Foreign Direct Investment a key factor for ECE’s economic development? What is the relationship between EU membership and foreign investments?

Required: Drahokoupil (2008)

Suggested: Bandelj (2010); Medve-Bálint (2014); Szent-Iványi (2017)

(8) Facilitating economic catch-up through external resources: why is the EU’s Cohesion Policy a mixed blessing for ECE?

Required: Medve-Bálint (2017)

Suggested: Bloom and Petrova (2013); Ferry and McMaster (2013); Grosse (2006);

(9) Why are the trade unions weak in most East Central European countries and what are the economic implications of this phenomenon?

Required: Ost (2005), Chapter 1

Suggested: Bernaciak (2015); Bohle and Greskovits (2006); Greskovits (1998)

(10) Path-dependence and/or external influences? What are the potential reasons for the slowdown of economic transformation in ECE?

Required: Benczes (2016)

Suggested: Bandelj, Finley and Radu (2015); Cirtautas és Schimmelfennig (2010); Sedelmeier (2008)

(11) The controversial nature of post-communist transformation: is ECE experiencing economic catch-up and if so, to what extent?

Required: Epstein (2014)

Suggested: Bohle (2011); Epstein and Jacoby (2014)

(12) What future for the ECE regimes? Are economic deadlock and democratic backsliding the only way forward? Wrap-up and a discussion about potential future scenarios

Required: Pop-Eleches (2015)

Suggested: Greskovits (2015); Bruszt and Langbein (2017); Börzel and Sedelmeier (2017)

(13) Wrap-up and conclusions

Time of class: 

Learning outcomes: At the end of the course students should be able to identify the main theoretical propositions of the literature and formulate their own, informed view on the topic.

Assignments: About the position papers
The position papers, which will be submitted via moodle, are critical reflections on a selected reading freely chosen from the list of suggested readings. For the first position paper students may choose from the suggested readings of the first six weeks, while for the second one they may choose from the suggested readings of the first twelve weeks. The essays should not exceed 2000 words. Instead of summarizing the chosen texts, students should offer a critical elaboration of the material, or a comparison with any of the mandatory readings (if relevant). The position papers should outline the students’ own opinion thus they are expected to formulate a coherent argument in these essays.

Bibliography:
Compulsory readings:

  • Bandelj, Nina. 2010. ‘How EU Integration and Legacies Mattered for Foreign Direct Investment into Central and Eastern Europe’. Europe-Asia Studies 62(3):481–501.
  • Bandelj, Nina, Katelyn Finley, and Bogdan Radu. 2015. ‘Democracy in Central and Eastern Europe: Test of Early Impact’. East European Politics 31(2):129–48.
  • Benczes, István. 2016. ‘From Goulash Communism to Goulash Populism: The Unwanted Legacy of Hungarian Reform Socialism’. Post-Communist Economies 28(2):146–66.
  • Bernaciak, Magdalena. 2015. Beyond the CEE ‘Black Box’: Crisis and Industrial Relations in the New EU Member States. Brussels: ETUI. Retrieved (https://www.etui.org/content/download/20594/168675/file/15+WP+2015+05+Beyond+the+CEE++EN+Web+version.pdf).
  • Bloom, Stephen and Vladislava Petrova. 2013. ‘National Subversion of Supranational Goals: “Pork-Barrel” Politics and EU Regional Aid’. Europe-Asia Studies 65(8):1599–1620.
  • Bohle, Dorothee. 2011. ‘East European Transformations and the Paradoxes of Transnationalization’. Pp. 130–50 in Transnational Europe: Promise, Paradox, Limits, Palgrave Studies in European Union Politics, edited by J. DeBardeleben and A. Hurrelmann. Basingstoke / New York: Palgrave Macmillan.
  • Bohle, Dorothee and Béla Greskovits. 2006. ‘Capitalism without Compromise: Strong Business and Weak Labor in Eastern Europe’s New Transnational Industries’. Studies in Comparative International Development 41(1):3–25.
  • Bohle, Dorothee and Béla Greskovits. 2012. Capitalist Diversity on Europe’s Periphery. Cornell University Press.
  • Börzel, Tanja A. and Ulrich Sedelmeier. 2017. ‘Larger and More Law Abiding? The Impact of Enlargement on Compliance in the European Union’. Journal of European Public Policy 24(2):197–215.
  • Bruszt, László. 2002. ‘Making Markets and Eastern Enlargement: Diverging Convergence?’ West European Politics 25(2):121–140.
  • Bruszt, László and Julia Langbein. 2017. ‘Varieties of Dis-Embedded Liberalism. EU Integration Strategies in the Eastern Peripheries of Europe’. Journal of European Public Policy 24(2):297–315.
  • Bruszt, László and Gerald A. McDermott. 2012. ‘Integrating Rule Takers: Transnational Integration Regimes Shaping Institutional Change in Emerging Market Democracies’. Review of International Political Economy 19(5):742–78.
  • Bunce, Valerie. 1999. ‘The Political Economy of Postsocialism’. Slavic Review 58(4):756–93.
  • Cirtautas, A. M. and F. Schimmelfennig. 2010. ‘Europeanisation Before and After Accession: Conditionality, Legacies and Compliance’. Europe-Asia Studies 62(3):421–441.
  • Drahokoupil, Jan. 2008. ‘The Investment-Promotion Machines: The Politics of Foreign Direct Investment Promotion in Central and Eastern Europe’. Europe-Asia Studies 60(2):197–225.
  • Ekiert, Grzegorz. 2003. ‘Patterns of Post-Communist Transformation in Central and Eastern Europe’. Pp. 87–119 in Capitalism and Democracy in Central and Eastern Europe, edited by G. Ekiert and S. E. Hanson. Cambridge, MA: Cambridge University Press.
  • Epstein, Rachel. 2014. ‘Overcoming “Economic Backwardness” in the European Union’. JCMS: Journal of Common Market Studies 52(1):17–34.
  • Epstein, Rachel A. and Wade Jacoby. 2014. ‘Eastern Enlargement Ten Years On: Transcending the East–West Divide?’ JCMS: Journal of Common Market Studies 52(1):1–16.
  • Ferry, Martin and Irene McMaster. 2013. ‘Cohesion Policy and the Evolution of Regional Policy in Central and Eastern Europe’. Europe-Asia Studies 65(8):1502–28.
  • Greskovits, Béla. 1998. The Political Economy of Protest and Patience: East European and Latin American Transformations Compared. Budapest: CEU Press.
  • Greskovits, Béla. 2015. ‘The Hollowing and Backsliding of Democracy in East Central Europe’. Global Policy 6(Supplement S1):28–37.
  • Grosse, Tomasz Grzegorz. 2006. ‘Euro-Commentary: An Evaluation of the Regional Policy System in Poland Challenges and Threats Emerging from Participation in the Eu’s Cohesion Policy’. European Urban and Regional Studies 13(2):151–65.
  • Hall, Peter A. and Rosemary C. R. Taylor. 1996. ‘Political Science and the Three New Institutionalisms’. Political Studies 44(5):936–57.
  • Jacoby, Wade. 2010. ‘Managing Globalization by Managing Central and Eastern Europe: The EU’s Backyard as Threat and Opportunity’’. Journal of European Public Policy 17(3):416–432.
  • Janos, Andrew C. 1989. ‘The Politics of Backwardness in Continental Europe, 1780–1945’. World Politics 41(03):325–58.
  • Janos, Andrew C. 2001. ‘From Eastern Empire to Western Hegemony: East Central Europe Under Two International Regimes’. East European Politics & Societies 15(2):221–49.
  • Kornai, János. 2000. ‘What the Change of System from Socialism to Capitalism Does and Does Not Mean’. The Journal of Economic Perspectives 14(1):27–42.
  • Medve-Bálint, Gergő. 2014. ‘The Role of the EU in Shaping FDI Flows to East Central Europe’. JCMS: Journal of Common Market Studies 52(1):35–51.
  • Medve-Bálint, Gergő. 2017. ‘Funds for the Wealthy and the Politically Loyal? How EU Funds May Contribute to Increasing Regional Disparities in East Central Europe’. Pp. 220–40 in EU Cohesion Policy: Reassessing Performance and Direction, Regions and Cities, edited by J. Bachtler, S. Hardy, P. Berkowitz, and T. Muravska. London; New York: Routledge.
  • Myant, Martin and Jan Drahokoupil. 2011. Transition Economies: Political Economy in Russia, Eastern Europe, and Central Asia. Wiley.
  • Myant, Martin and Jan Drahokoupil. 2012. ‘International Integration, Varieties of Capitalism and Resilience to Crisis in Transition Economies’. Europe-Asia Studies 64(1):1–33.
  • Nölke, A. and A. Vliegenthart. 2009. ‘Enlarging the Varieties of Capitalism: The Emergence of Dependent Market Economies in East Central Europe’. World Politics 61(4):670–702.
  • Offe, Claus and Pierre Adler. 1991. ‘Capitalism by Democratic Design? Democratic Theory Facing the Triple Transition in East Central Europe’. Social Research 58(4):865–92.
  • Ost, David. 2005. The Defeat of Solidarity: Anger and Politics in Postcommunist Europe. Ithaca, NY: Cornell University Press.
  • Pierson, Paul. 2000. ‘Increasing Returns, Path Dependence, and the Study of Politics’. American Political Science Review 94(2):251–67.
  • Pop-Eleches, Grigore. 2015. ‘Pre-Communist and Communist Developmental Legacies’. East European Politics & Societies 29(2):391–408.
  • Roland, Gérard. 2002. ‘The Political Economy of Transition’. The Journal of Economic Perspectives 16(1):29–50.
  • Schimmelfennig, F. and U. Sedelmeier. 2005. The Europeanization of Central and Eastern Europe. Ithaca: Cornell University Press.
  • Sedelmeier, U. 2008. ‘After Conditionality: Post-Accession Compliance with EU Law in East Central Europe’. Journal of European Public Policy 15(6):806–825.
  • Szent-Iványi, Balázs. 2017. ‘Introduction: The Changing Patterns of FDI’. Pp. 1–22 in Foreign Direct Investment in Central and Eastern Europe. Post-Crisis Perspectives, Studies in Economic Transition. Palgrave Macmillan.
  • Vachudova, Milada A. 2005. Europe Undivided: Democracy, Leverage, and Integration after Communism. New York: Oxford University Press.

Recommended readings:

Compulsory readings:
Bandelj, Nina. 2010. ‘How EU Integration and Legacies Mattered for Foreign Direct Investment into Central and Eastern Europe’. Europe-Asia Studies 62(3):481–501.
Bandelj, Nina, Katelyn Finley, and Bogdan Radu. 2015. ‘Democracy in Central and Eastern Europe: Test of Early Impact’. East European Politics 31(2):129–48.
Benczes, István. 2016. ‘From Goulash Communism to Goulash Populism: The Unwanted Legacy of Hungarian Reform Socialism’. Post-Communist Economies 28(2):146–66.
Bernaciak, Magdalena. 2015. Beyond the CEE ‘Black Box’: Crisis and Industrial Relations in the New EU Member States. Brussels: ETUI. Retrieved
Bloom, Stephen and Vladislava Petrova. 2013. ‘National Subversion of Supranational Goals: “Pork-Barrel” Politics and EU Regional Aid’. Europe-Asia Studies 65(8):1599–1620.
Bohle, Dorothee. 2011. ‘East European Transformations and the Paradoxes of Transnationalization’. Pp. 130–50 in Transnational Europe: Promise, Paradox, Limits, Palgrave Studies in European Union Politics, edited by J. DeBardeleben and A. Hurrelmann. Basingstoke / New York: Palgrave Macmillan.
Bohle, Dorothee and Béla Greskovits. 2006. ‘Capitalism without Compromise: Strong Business and Weak Labor in Eastern Europe’s New Transnational Industries’. Studies in Comparative International Development 41(1):3–25.
Bohle, Dorothee and Béla Greskovits. 2012. Capitalist Diversity on Europe’s Periphery. Cornell University Press.
Börzel, Tanja A. and Ulrich Sedelmeier. 2017. ‘Larger and More Law Abiding? The Impact of Enlargement on Compliance in the European Union’. Journal of European Public Policy 24(2):197–215.
Bruszt, László. 2002. ‘Making Markets and Eastern Enlargement: Diverging Convergence?’ West European Politics 25(2):121–140.
Bruszt, László and Julia Langbein. 2017. ‘Varieties of Dis-Embedded Liberalism. EU Integration Strategies in the Eastern Peripheries of Europe’. Journal of European Public Policy 24(2):297–315.
Bruszt, László and Gerald A. McDermott. 2012. ‘Integrating Rule Takers: Transnational Integration Regimes Shaping Institutional Change in Emerging Market Democracies’. Review of International Political Economy 19(5):742–78.
Bunce, Valerie. 1999. ‘The Political Economy of Postsocialism’. Slavic Review 58(4):756–93.
Cirtautas, A. M. and F. Schimmelfennig. 2010. ‘Europeanisation Before and After Accession: Conditionality, Legacies and Compliance’. Europe-Asia Studies 62(3):421–441.
Drahokoupil, Jan. 2008. ‘The Investment-Promotion Machines: The Politics of Foreign Direct Investment Promotion in Central and Eastern Europe’. Europe-Asia Studies 60(2):197–225.
Ekiert, Grzegorz. 2003. ‘Patterns of Post-Communist Transformation in Central and Eastern Europe’. Pp. 87–119 in Capitalism and Democracy in Central and Eastern Europe, edited by G. Ekiert and S. E. Hanson. Cambridge, MA: Cambridge University Press.
Epstein, Rachel. 2014. ‘Overcoming “Economic Backwardness” in the European Union’. JCMS: Journal of Common Market Studies 52(1):17–34.
Epstein, Rachel A. and Wade Jacoby. 2014. ‘Eastern Enlargement Ten Years On: Transcending the East–West Divide?’ JCMS: Journal of Common Market Studies 52(1):1–16.
Ferry, Martin and Irene McMaster. 2013. ‘Cohesion Policy and the Evolution of Regional Policy in Central and Eastern Europe’. Europe-Asia Studies 65(8):1502–28.
Greskovits, Béla. 1998. The Political Economy of Protest and Patience: East European and Latin American Transformations Compared. Budapest: CEU Press.
Greskovits, Béla. 2015. ‘The Hollowing and Backsliding of Democracy in East Central Europe’. Global Policy 6(Supplement S1):28–37.
Grosse, Tomasz Grzegorz. 2006. ‘Euro-Commentary: An Evaluation of the Regional Policy System in Poland Challenges and Threats Emerging from Participation in the Eu’s Cohesion Policy’. European Urban and Regional Studies 13(2):151–65.
Hall, Peter A. and Rosemary C. R. Taylor. 1996. ‘Political Science and the Three New Institutionalisms’. Political Studies 44(5):936–57.
Jacoby, Wade. 2010. ‘Managing Globalization by Managing Central and Eastern Europe: The EU’s Backyard as Threat and Opportunity’’. Journal of European Public Policy 17(3):416–432.
Janos, Andrew C. 1989. ‘The Politics of Backwardness in Continental Europe, 1780–1945’. World Politics 41(03):325–58.
Janos, Andrew C. 2001. ‘From Eastern Empire to Western Hegemony: East Central Europe Under Two International Regimes’. East European Politics & Societies 15(2):221–49.
Kornai, János. 2000. ‘What the Change of System from Socialism to Capitalism Does and Does Not Mean’. The Journal of Economic Perspectives 14(1):27–42.
Medve-Bálint, Gergő. 2014. ‘The Role of the EU in Shaping FDI Flows to East Central Europe’. JCMS: Journal of Common Market Studies 52(1):35–51.
Medve-Bálint, Gergő. 2017. ‘Funds for the Wealthy and the Politically Loyal? How EU Funds May Contribute to Increasing Regional Disparities in East Central Europe’. Pp. 220–40 in EU Cohesion Policy: Reassessing Performance and Direction, Regions and Cities, edited by J. Bachtler, S. Hardy, P. Berkowitz, and T. Muravska. London; New York: Routledge.
Myant, Martin and Jan Drahokoupil. 2011. Transition Economies: Political Economy in Russia, Eastern Europe, and Central Asia. Wiley.
Myant, Martin and Jan Drahokoupil. 2012. ‘International Integration, Varieties of Capitalism and Resilience to Crisis in Transition Economies’. Europe-Asia Studies 64(1):1–33.
Nölke, A. and A. Vliegenthart. 2009. ‘Enlarging the Varieties of Capitalism: The Emergence of Dependent Market Economies in East Central Europe’. World Politics 61(4):670–702.
Offe, Claus and Pierre Adler. 1991. ‘Capitalism by Democratic Design? Democratic Theory Facing the Triple Transition in East Central Europe’. Social Research 58(4):865–92.
Ost, David. 2005. The Defeat of Solidarity: Anger and Politics in Postcommunist Europe. Ithaca, NY: Cornell University Press.
Pierson, Paul. 2000. ‘Increasing Returns, Path Dependence, and the Study of Politics’. American Political Science Review 94(2):251–67.
Pop-Eleches, Grigore. 2015. ‘Pre-Communist and Communist Developmental Legacies’. East European Politics & Societies 29(2):391–408.
Roland, Gérard. 2002. ‘The Political Economy of Transition’. The Journal of Economic Perspectives 16(1):29–50.
Schimmelfennig, F. and U. Sedelmeier. 2005. The Europeanization of Central and Eastern Europe. Ithaca: Cornell University Press.
Sedelmeier, U. 2008. ‘After Conditionality: Post-Accession Compliance with EU Law in East Central Europe’. Journal of European Public Policy 15(6):806–825.
Szent-Iványi, Balázs. 2017. ‘Introduction: The Changing Patterns of FDI’. Pp. 1–22 in Foreign Direct Investment in Central and Eastern Europe. Post-Crisis Perspectives, Studies in Economic Transition. Palgrave Macmillan.
Vachudova, Milada A. 2005. Europe Undivided: Democracy, Leverage, and Integration after Communism. New York: Oxford University Press.
Recommended readings:

 
Instructors:

Rosta Miklós

Last modification: 2018-09-06 14:08:57

Courses

Course codeTypeSemesterInstructors
GGyakorlat2018/19/1Rosta Miklós
EElmélet2018/19/1Rosta Miklós
E1Elmélet2018/19/1Rosta Miklós
G1Gyakorlat2018/19/1Rosta Miklós
E2Elmélet2018/19/1Rosta Miklós
G2Gyakorlat2018/19/1Rosta Miklós


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