- permit buying and selling of land (financing of land sales, establish mortgage lenders, registration of land ownership, legislation of mortgages)
how to stabilize economy on macro level
- reduce inflation by reducing government subsidies
- stabilize value of currency by reducing money supply, making currency convertible, and reducing deficits
- reform tax system by changing rates and taxes, improving collecting system
- eliminate price controls on goods
required legislation for free market
- company law - bankruptcy law - privatization legislation - securities law - banking law - law of mortgages and other security interests - land code - civil code - criminal code - criminal procedure code - civil procedure code - housing legislation
the study of how shareholders, directors, employees, creditors, and other stakeholders such as consumers, the community and the environment interact with one another under the internal rules of the firm. the four defining characteristics of the modern company are 1) separate legal personality of the corporation 2) limited liability of the shareholders 3) shares 4) delegated management
established in 1935. originally controlled by NKVD (public and secret police of USSR that directly ruled executed the rule of the Soviets). used prison laborers from Gulag. world's leading producer of nickel and palladium. before 1993, it was owned by the state. in 1993, it became a joint stock company (state retained 38% of shares and 51% of voting shares). Uneximbank was the winning bidder in auction to purchase Norilsk Nickel from state (but gov had appointed Uneximbank to manage auction)
Central European countries
Poland, Czech Republic, Hungary, Slovakia, Croatia, Slovenia. These countries are grouped together predominately because they are either Catholic or Protestant (Western Christianity).
Eastern European countries
Romania, Bulgaria, and Russia. These countries are grouped together because they are predominantly Orthodox (Eastern Christianity).
Prediction of economic success based upon religion
countries that are predominately catholic or protestant have shown to be economically more prosperous and stable than countries that are predominately Orthodox or Muslim. Possible reasons: west is more willing to trade with like-minded countries, etc...
Bush confused this country with this country
Bush confused Slovakia with Slovenia during his presidential campaign. USA Today printed a map of Eastern Europe when they published a story on the Bush-Putin Summit of 2005 that incorrectly labeled Slovakia as Slovenia.
as a cultural region lying between Central Europe and Western Asia, with main characteristics consisting in Byzantine, Orthodox and minor and limited Ottoman influences OR the formerly Communist European states outside the Soviet Union
CIA categorization of countries
central Europe: Austria, Czech Republic, Germany, Hungary, Poland, Slovakia and Slovenia
Eastern Europe: Belarus, Estonia, Latvia, Lithuania, Moldova and Ukraine
Southeastern Europe: Albania, Bulgaria, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro, Romania, Serbia and Turkey
Russia is defined as a transcontinental country.
Sources of division within Europe
- Cold War: division among NATO and Warsaw pact states. eastern europe = eastern bloc
- Central Europe and the Baltic states have significantly different political, religious, cultural, and economic histories from their eastern neighbors.
estonia, latvia, and lithuania. The Baltic states were occupied by the Soviet Union and are currently EU members. They can be included in definitions of Eastern Europe in the former political sense, due to their Soviet past and Northern Europe due to geographic, cultural, historical reasons.
division of Europe in middle ages
- Roman Republic expanded - division between Greek-speaking eastern provinces (Hellenistic) and the latin language-speaking western territories.
- Western Roman Empire collapsed and Eastern Roman Empire (Byzantine Empire) remained. Holy Roman Empire in west rose - division of e. and w. christianity.
- Eastern Europe invaded by Mongols. Muslim Ottoman Empire.
- fall of Holy Roman Empire - division between catholic/protestant and orthodox
- 1915 - romania, bulgaria and serbia declared independence
- post-wwI ottoman and austrian empires collapse
- wwII: iron curtain divides western bloc (capitalist,NATO and Marshall Plan) and eastern bloc (communist,Warsaw Pact and comecon).
- eastern bloc: Soviet Union, Germany, Poland, Czecholslovakia, Hungary, Bulgaria, and Romania (Yugoslavia and Albania were neutral in the non-aligned movement)
- 1989 - fall of the iron curtain
- 1991 - soviet union ceased to exist
ethnically homogeneous countries
- czech republic
ethnically diverse countries
ways of perceiving spaces and places, and the relationships between them, in order to convey broad characterizations surrounding culture, politics, and economies. can often lead to the politicization of global space. can shape national identity and international policy
east: barbaric, semi-civilized, backward, despotism, Asia, the Orient, crime, unwanted immigration, political instability, violent nationalism, preserves tradition
return to Europe
goal of the Visegrad group. when the former Warsaw Pact states vied for EU and NATO membership, adherence to western-style government and economics, membership in Western institutions, return to european values, history and culture.
revival in late 1980s and 1990s (largely Poland, Czech Republic, and Hungary which were called the Visegrad states - no Germany) distinct from the east. conceptual shift towards the west. unite in common goals to disband Warsaw and Comecon, revive economic relations, solicit aid from west, withdrawal of soviet troops. idea did not stick with the public. more pressing efforts to join EU. alienated states from both west and orient.
lace curtain or postcoloniality
the iron curtain no longer stands. however, east-west dichotomy still exists. east-central europe is simultaneously in europe, but not european. on the margin. eastern outpost of west. caused by both e. and w. reluctance. EU members accused of seeking fast-track security and economic growth.
effects of EU/NATO enlargement
- undermine cold war era division of Europe
- fueled three-fold division of continent into European core, Central European applicants not yet fully European but in tune with western values, and eastern periphery excluded from membership
- east-central europe no longer treated as 2nd world, but now 3rd world
characteristics of soviet economy
- hierarchical structure of authority and centralized planning
- implemented administratively through the issuing of direct commands and extensive, detailed coordinating instructions
- subordinates have little autonomy and are rigidly bound by commands
- all wisdom and authority resides with central authorities
- fine detail of implementation is delegated to operational units
- lack of legal alternatives or liquidity
socialized sectors in soviet economy
all natural resources, all reproducible capital (buildings, machinery, equipment, and inventories), conducts all mining, construction, transportation, communications, health, research, and education activities. small-scale agriculture, arts and crafts, and some professional services are allowed in the private sector.
strengths and weaknesses of soviet economy
strengths: mobilizing scarce resources, concentrating on a few clear goals that can be measured in quantitative terms, monitoring, planning
weaknesses: ignorance of opportunity costs, negative externalities, exploitation of resources and labor, avoid change and innovation, no risk-taking at all, manipulation of quality or scheduling, inefficiency
why Russian economy has failed
- no loyalties anymore
- no authority telling them what to do
- prices of goods are arbitrary
- subordinates used new autonomy to make tasks easier
- command economy built for twice as long as eastern european states
- institutions, buildings, industries built as a result of arbitrary decisions
fall of Soviet Union
- economic crisis - citizens questioned "possession of the Truth" and goal of improving individuals' economic standing
- investments in research forced them to rely on heavy importation
- conflict among high and middle party authority about reform
- privatization of industries and resources actually meant that ruling party members went from de facto to de jure owners
- workers have nothing to lose by rebelling
- intellectuals and workers unite
- Poland and Hungary were leaders in opposition
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