Markets, States, and Democracy: The Political Economy of Post-Communist Transformation

By Beverly Crawford | Go to book overview
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tween the emphasis on the individual and his rights on the one hand, and on the nation and national independence as the highest goal on the other." Quoted in Abraham Brumberg , "Not So Free at Last," the New York Review of Books, October 22, 1992, p. 61.
For example, 45 percent of all metalworking equipment in the Soviet Union was produced in non-machine-building enterprises, and 84 percent of machine-building enterprises produced their own forgings; 65 percent produced their own metal hardware; and 76 percent produced their own stock. See "The Best of All Monopoly Profits" in the Economist, August 11, 1990, p. 67.
This is particularly the case when markets are underdeveloped. In market economies, opposition is more likely to be directed against the employer than against the state.
Although the EC agreed in 1991 to a gradual process of trade liberalization vis-à-vis Poland, Hungary, the Czech Republic, and Slovakia, to be completed within a five-year period, sensitive sectors like agriculture were omitted from the agreement. In November 1992, for example, the EC imposed antidumping duties on steel imported from Croatia, Poland, Czechoslovakia, and Hungary. See "Dumping Duties Anger Eastern Europe," the Financial Times, November 20, 1992. See also Richard W. Stevenson, "East Europe Says Barriers to Trade Hurt Its Economies," the New York Times, January 25, 1993, pp. A1 and C8.
An alternative version of gradualism is that discussed at the beginning of this chapter: the sequencing of economic and political liberalization so that markets are created under authoritarian regimes and democracy is gradually introduced later. As noted at the outset, this version of gradualism is not generally politically feasible in most post-communist societies and not considered legitimate in most scholarly discourse on post-communist transformation. Nonetheless, as the above example of Ukraine and as trends in other post- Soviet regions illustrate, authoritarian regimes may indeed emerge to push through market reforms.

Akerlof George; Andrew Rose; Janet Yellen; and Helga Hessenius. 1991. "East Germany in from the Cold: The Economic Aftermath of Currency Union." Brookings Papers on Economic Activity 1: 67.
Aslund Anders. 1989. Gorbachev's Struggle for Economic Reform. Ithaca: Cornell University Press.
Borhi Laszlo. 1993. "East European Security in the Post-Bipolar System." In European Dilemmas After Maastricht, Beverly Crawford and Peter W. Schulze, eds., 263-272. Berkeley: International and Area Studies.
Buchanan James M., and Robert D. Tollison, eds. 1972. Theory of Public Choice: Political Application of Economics. Ann Arbor: University of Michigan Press.
Burawoy Michael, and Pavel Krotov. 1992. "The Soviet Transition from Socialism to Capitalism: Worker Control and Economic Bargaining in the Wood Industry." American Sociological Review 57 (February): 16-38.
Chirot Daniel, ed. 1989. The Origins of Backwardness in Eastern Europe: Economics and Politics from the Middle Ages Until the Early Twentieth Century. Berkeley: University of California Press.


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Markets, States, and Democracy: The Political Economy of Post-Communist Transformation


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