INDUSTRIAL POLICIES AND STRUCTURAL CHANGE
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1 INDUSTRIAL POLICIES AND STRUCTURAL CHANGE
2 INDUSTRIAL POLICIES AND STRUCTURAL CHANGE Edited by Christopher T. Saunders Palgrave Macmillan
3 ISBN ISBN (ebook) DOI / Wiener Institut fur Internationale Wirtschaftsvergleiche (WIIW) (The Vienna Institute for Comparative Economic Studies), 1987 Softcover reprint of the hardcover 1 st edition All rights reserved. For information, write: Scholarly & Reference Division, St. Martin's Press, Inc., 175 Fifth Avenue, New York, NY First published in the United States of America in 1987 ISBN Library of Congress Cataloging-in-Publication Data Industrial policies and structural change. Bibliography: p. Includes index. 1. Industry and state. 2. Agriculture and state. I. Saunders, Christopher T. HD ISBN
4 Preface A new look at how economic structures can successfully adapt, or be adapted by policy, to the changing conditions of economic and technical progress is exercising many minds - in governments and international organisations, and among planners, business leaders and economists - both in market economies and in socialist countries. In itself this preoccupation is nothing new. What is new is the additional impetus, and urgency for action, due to the profound disturbances to the world economy that we now confront. The search for more effective policies to promote the right kind of structural adaptation justified the Vienna Institute for Comparative Economic Studies in organising the ninth Workshop on East-West European Economic Interaction. It was held in Vienna on December 2-5, 1985, in the more hopeful climate of lessening East-West tensions. The Workshop - on which this book is based - brought together about 40 invited experts from East and West. Their contributions provide a wide spectrum of experience and opinion, from planners seeking improvements in systems of economic management to sceptics of the efficacy of many forms of government intervention in the economic process. The comparisons of differing national approaches and policies can offer much guidance both to decision-makers in government and business and also to analysts and advisers who can influence governments, enterprises and public opinion. Acknowledgements The Vienna Institute is greatly indebted for assistance and hospitality to the Dr.-Karl-Renner-Institute, Vienna, and for financial sponsorship to the Fritz Thyssen Stiftung, which covered a large portion of costs. Thanks are also due to the Bundeskammer der gewerblichen Wirtschaft and to Die Erste osterreichische Spar-Casse-Bank for substantial contributions. Financial assistance was also given by the Verband osterreichischer Banken und Bankiers, the Elin Union, Constantia, Siemens AG., Konsul Dr. Wilhelm Hendriks, the Verbundgesellschaft, Austria Metall, OMV and OSWAG. In organising the Workshops the WIIW has been assisted by the international Steering Committee (1), the ninth Workshop was arranged and competently conducted by the Institute's secretariat under the leadership of the Director, Dr. Gerhard Fink and Mrs. Gerlinde Schofbeck. The papers and discussions have again been edited with accustomed skill by Professor C. T. Saunders, assisted by Fred Prager. The typesetting and page make-up were efficiently carried out by Mrs. Renate Garbacz and Mr. Michael Esterh~zy and the index prepared with accustomed care by Mrs. Audrey Bamber. We are grateful, as always, for the valuable cooperation of Mr. T. M. Farmiloe of the Macmillan Press Ltd. Philipp Rieger Chairman of the Workshop * * * V
5 It is appropriate to pay a special tribute in this volume to Friedrich Levcik and Philipp Rieger, each of whom has recently reached the age of 70. Levcik - together with his predecessor as Director of the WIIW, Franz Nemschak - initiated and inspired the series of Workshops on East-West European Economic Interaction, on the ninth of which this book is based. The continuing success of the Workshops (which began in 1975) owes much both to Levcik, and to Rieger who followed Nemschak as chairman of the Workshop Steering Committee: to their skill and energy in mobilising intellectual resources from both East and West for fruitful study. The workshop may be regarded as a model of East-West interaction in the scientific sphere. As members of the International Steering Committee we have had every opportunity of observing and admiring their tactful persistence and their ability in coping with the continuous problems that beset such endeavours. Levcik's eventful life story and achievements are recounted in a Festschrift published in 1985 (2). Levcik is essentially an internationalist, his interests focusing especially on comparative economics; and comparative economics takes up where 'national economy' ends. Levcik's career, too, has been internationally mobile, taking him from his native Czechoslovakia to wartime Britain; back to Prague (among other things as a deputy Minister in the early 1950s, and later much involved in the planning of economic and social reforms); to Geneva to the International Labour Office, and then to the UN Economic Commission for Europe (where he was in charge of the authoritative studies of the socialist economies); and then in 1973 to Vienna, first as director of research and subsequently, on the retirement of Franz Nemschak, as Director of WIIW, the post he filled until Most of his work, and his many publications, have been concerned with the socialist economies, with many aspects of East-West relations, and with East-West comparisons. His own researches together with those which he has inspired in WIIW and elsewhere, have kept us up-to-date on developments in trade and finance, industrial cooperation schemes, technological progress, planning mechanisms and industrial organisation, wage systems, income distributions and manpower problems; his earlier specialisation was in labour economics - a wide field which displayed his humanistic approach to social science. Levcik has not restricted himself to analysis of the present and the past; he is not afraid to speculate on the future or to suggest practical lessons to be drawn from his observations and experience. * * * The course of Philipp Rieger's life, too, was largely determined by his ideals of a better and more just world and by the political upheavals of his generation. A Festschrift published in 1982 sketches his career (3). In his youth he made contact with the labour movement, later participating in the - by then illegal - socialist students' union. Arrested and interned after the" AnschluB", and after his release from Dachau concentration camp able to emigrate to England, he was there interned after the outbreak of VI
6 war as an "enemy alien" and deported to Canada. In 1942 he was permitted to return to England, where he learnt the trade of instrument maker. Active as a trade unionist, elected shop steward and engaged in political work, he continued his twice interrupted studies in his spare time; he obtained his B.Sc.Econ.(Hons.) degree at the University of London in 1947, followed by postgraduate work on social accounting at the London School of Economics. On his return to Austria in 1957, Rieger joined the newly founded Economic Research Department of the Vienna Chamber of Labour, and later headed the Chamber's Division of Statistics. In 1963 he was appointed as one of two joint executive Secretaries, representing labour on the newly founded Advisory Board on Economic and Social Affairs (Sozialpartnerschaft). In 1965 he left the Chamber of Labour to join the Directorate of the Oesterreichische Nationalbank (the Austrian central bank) and in this function he was appointed, in 1978, to the post of Austrian alternate governor for the IMF. Since his retirement in 1982 from the OeNB directorate he has been acting as an advisor on international finan cial affairs to the board of the Creditanstalt-Bankverein in Vienna. Together with a small group of economists, mostly educated in Britain or America, Rieger was instrumental in the reception of Keynesian ideas in post-war Austria. Through his close link with the powerful trade union movement and the Chambers of Labour, and by his work within the influential Parity Commission on Wages and Prices and later in the central bank, Rieger was associated from the beginning with the evolution of that specific policy-mix which later became known as "Austro-Keynesianism". * * * Both Levcik and Rieger, with their varied backgrounds, their many professional contacts with most European countries, North America and China, and their sympathetic and enquiring personalities have established international reputations and have made many good friends in diverse parts of the world. The Vienna Institute is proud to be connected with Friedrich Levcik and Philipp Rieger, hoping that these links may continue for many years to come. C. T. Saunders G. Fink VII
7 Notes (1) The I nternational Steering Committee of the Workshops on East-West European Economic Interaction consists of: Carlo Boffito, Milano; J6zsef Bognar Budapest; Oleg Bogomolov, Moscow; Bernard Cazes, Paris; Gerhard Fink, Vienna; Karl-Hermann Fink, Cologne; John P. Hardt, Washington; Norbert Kloten, Stuttgart; Rikard Lang, Zagreb; Friedrich Levcik, Vienna; Aleksander Lukaszewicz, Warsaw; Philipp Rieger, Vienna; Christopher T. Saunders, Brighton; Peter Sydow, East Berlin; Dragomir Vojnic, Zagreb. (2) For a full account of Levcik's "life and letters" see G. Fink (ed.), Socialist Economy and Economic Policy: Essays in honour of Friedrich Levcik, Wien - New York, Springer Verlag, (3) For a sketch of Rieger's life and a bibliography of his writings see "Expansion, Stagnation und Demokratie", in Wirtschaft und Gesellschaft, Wirtschaftspolitische Zeitschrift der Kammer fur Arbeiter und Angestellte fur Wien, 8. Jg., No. 2/82. VIII
8 TABLE OF CONTENTS Christopher Saunders Editor's introduction PART I: OVERALL ASSESSMENTS AND COMPARISONS Chapter 1: William Diebold Western industrial policies and East:West relations Appendix: A commentary on the scope of industrial policy and some western experience Chapter 2: Fritz Franzmeyer Concepts of industrial policy in the industrial West: are mutual trade relations in danger? Chapter 3: Josef C. Brada and Robin L. Dunn Industrial policies in East and West Europe compared Chapter 4: Zolt{m Roman and Kurt Bayer Structural policy in Hungary and Austria Comments on Part I: Aleksander Czepurko Manfred E. Streit Aleksander Lukaszewicz Fritz Franzmeyer PART II: TECHNOLOGICAL POLICY IN INDUSTRY Chapter 5: P. Lesley Cook Research and development networks and markets in a complex industry: the example of offshore oil equipment Chapter 6: Ruben Evstigneev State scientific and technological policy and incentives for enterprises IX
9 Chapter 7: Manfred Streit Industrial policies for technological change: the case of West Germany Chapter 8: Peter Sydow Growth, technical progress and international division of labour: a view from the GDR Comments on Part II: Win fried Schenk J6zsef Bognar Wladimir Andreff Aleksander Lukaszewicz Manfred Streit PART III: SOME NATIONAL INDUSTRIAL POLICIES EXAMINED Chapter 9: Herbert Krejci A market economist's view on industrial policy Chapter 10: Ferdinand Lacina Industrial policy in a mixed economy: the Austrian case Chapter 11: Jean Cheval New trends in industrial performance and industrial policy in France Chapter 12: Vittorio Conti and Marco Silvani Foreign trade and industrial structure in Italy: an input-output multiplier analysis Chapter 13: Rikard Lang and Dragomir Vojnic Long-term programme for economic stabilisation and the industrial structure of Yugoslavia Chapter 14: Lojie Socan Federal industrialisation policies in Yugoslavia X
10 Chapter 15: Aleksander Lukaszewicz and J6zef Pajestka Industrial policy and structural change: the Polish case Chapter 16: Bela Csikos-Nagy Export-oriented policies under severe import regimes: a case study for Hungary Comments on Part III: Wladimir Andreff Gorazd Niki Fritz Franzmeyer Manfred Streit Renato Mieli Jozsef Bogmir PART IV: STRUCTURAL POLICIES FOR AGRICULTURE Chapter 17: Philip M. Raup Structural change in agriculture in the United States Chapter 18: Oleg Bogomolov Agricultural policies in European CMEA countries and their international aspects Chapter 19: Vera Ivanova Agroindustrial complexes and personal holdings in Bulgaria - does that mean a "mixed" policy? Chapter 20: J. S. Marsh A British view of the Common Agricultural Policy (CAP) Chapter 21: Louis MaM The Common Agricultural Policy: a French point of view Comments on Part IV: Michael Kaser Fritz Franzmeyer Manfred Streit H. Fischer and Peter Sydow XI
11 Annex I to Part IV: Matthias Schneider: Structural changes and current problems in Austrian agriculture Annex II to Part IV: Herbert Fischer and Peter Sydow: Agricultural Development in the German Democratic Republic LIST OF PARTICIPANTS INDEX XII
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