UNIVERSITY OF MICHIGAN FORD SCHOOL OF PUBLIC POLICY. Prof. Katherine Terrell January 11 Feb. 22, 2001 Office: Lorch 455c Class: Th 1:00-3:30

Transcription

1 UNIVERSITY OF MICHIGAN FORD SCHOOL OF PUBLIC POLICY Prof. Katherine Terrell January 11 Feb. 22, 2001 Office: Lorch 455c Class: Th 1:00-3:30 Classroom: 473 Lorch PUBPOL674: Economic, Political and Social Policies in the Czech Republic (and Transition Economies) This two-credit course is open to all graduate students interested in understanding the evolution of the Czech Republic's economic, political and social institutions and policies. We will begin with an overview of its historical origins, briefly examine the period under Communism ( ) and then focus most of the course on the period in transition from a socialist planned economy to a market oriented economy (1990-to the present). We will compare and contrast the Czech transition experience with those of other countries in transition to place it in perspective. The interests of the students will help shape which current policies will be examined more closely in the last part of the course. One or two guest speakers will be invited to speak on special topics (such as the "velvet divorce" with Slovakia in 1992). Grades will be based on class participation and presentations, one 5-page policy paper and a final exam. Jan. 11: Historical Origins of the Czech Republic ( ) This class will focus on the early history -- from the Bohemian Kingdom to the Hapsburg Rule ( ) and the Austro-Hungarian Empire ( ) -- and the features of the Czechoslovak Republic ( ) with its dissolution during WWII ( ). Zenon Kohut (1989) "Historical Setting" Chapter 1 in Ihor Gawdiak (ed.) Czechoslovakia: a Country Study. Federal Research Division of the Library of Congress Country Studies Area Handbook Program. Library of Congress: Wash., D.C. (pp. 3-54) Helen Fedor and Mark W. Gould "The Society and its Environment" Chapter 2 in Ihor Gawdiak (ed.) Czechoslovakia: a Country Study. Federal Research Division of the Library of Congress Country Studies Area Handbook Program. Library of Congress: Wash., D.C (pp ). Class Speakers: Krisitn Grauer and Bir Ganguly Guest Speaker: Prof. Jan Kmenta, emeritus professor, Economics, Univ. of Michigan

2 Jan. 18: Czechoslovakia during the Socialist Period ( ) Zenon Kohut (1989) "Communist Czechoslovakia" Chapter 1 in Ihor Gawdiak (ed.) Czechoslovakia: a Country Study. Federal Research Division of the Library of Congress Country Studies Area Handbook Program. Library of Congress: Wash., D.C. (pp.54-73) Becky Gates (1989) "The Economy" Chapter 3 in Ihor Gawdiak (ed.) Czechoslovakia: a Country Study. Federal Research Division of the Library of Congress Country Studies Area Handbook Program. Library of Congress: Wash., D.C. (pp ) Cathleen Campbell (1989) "Government and Politics" Chapter 4 in Ihor Gawdiak (ed.) Czechoslovakia: a Country Study. Federal Research Division of the Library of Congress Country Studies Area Handbook Program. Library of Congress: Wash., D.C. (pp ) Joseph Stiglitz (1994) The Socialist Experiment: What Went Wrong? Chapter 11 in Whither Socialism? MIT Press: Cambridge, Mass. (pp ) Prague Spring (1968) This Think Quest site provides an elaborately detailed history of the 1968 anti- Soviet uprising in Czechoslovakia known as the Prague Spring. The site provides not only comprehensive information on the main figures, events, and aftermath of the uprising, but also gives detailed background on the history that led to Czechoslovakia coming under Soviet influence in the wake of World War II. Users can take a guided tour or browse separate sections on the background of the uprising, the events of the Spring of '68, the Soviet Intervention, and its aftermath. In addition, a database of pamphlets, photographs, and biographical profiles is made available along with a search engine. Each separate section offers a pull-down menu for easy navigation, and the historical description is supplemented by 68 primary documents, including such fascinating items as the Munich Agreement struck between Western European allies and Hitler and a letter from Leonid Brehznev to Alexander Dubcek expressing concern about events in Czechoslovakia, April 11, Class Speakers: Natasha Ratenberg, ChadWeinberg, Heather Brownfield Guest Speaker: Prof. Ctirad Uher, Physics Department, Univ. of Michigan Jan. 25: The Velvet Revolution and Transition to a Market Economy (1990- present) Topics to be discussed: events of the Velvet Revolution; what problems did the government face as it embarked on transition to a market economy and a democracy; what were model societies for the Czech people (Vaclav Havel's role); what actions did

3 the Government take, focusing on macroeconomic policies and trade liberalization; what was the role of the US and other governments in assisting the Czech transition. "A New History of the Velvet Revolution" The New York Review of Books, New York 40(142), January 14, 1993, 14 pages. "The End of the Velvet Revolution" The New York Review of Books, New York 39(14), Aug. 13, 1993, pp European Bank for Reconstruction and Development (E.B.R.D.) (1994) "The Meaning of Transition" Transition Report (pp. 1-4) Karl Dyba and Jan Svejnar (1995) A Comparative View of the Economic developments in the Czech Republic Chapter 1 in J. Svejnar (ed.) The Czech Republic and Economic Transition in Eastern Europe. Academic Press: New York. (pp ) the December 1997 speech by Pres. Vaclav Havel Gerard Roland (2000) Understanding Transition, Chapter 1 in Transition and Economics: Politics, Markets, and Firms. MIT Press: Cambridge, Mass. (pp. 1-22) Joseph Stiglitz (1994) Asking the Right Questions: Theory and Evidence? Chapter 13 in Whither Socialism? MIT Press: Cambridge, Mass. (pp ) Joseph Stiglitz (1994) Some Tentative Recommendations Chapter 15 in Whither Socialism? MIT Press: Cambridge, Mass. (pp ) Class Speakers: Jason Price, Shelly TenNapel, Lisa Katz Guest Speaker: Prof. Jan Svejnar, Business School and Economics Dept., Univ. of Michigan Feb. 1: Comparing Privatization Policies, Financial Sector Reform, and the impact of these policies on Foreign Direct Investment (FDI) This class will focus on a comparison of the privatization policies in Czechoslovakia with those of the other transition economies. We will look at the impact these policies had on: the society, economic efficiency and attraction of FDI. We will examine the problems in the financial sector and how they were (not) dealt with. Privatization policies Josef Kotrba (1995) Privatization Process in the Czech Republic: Players and Winners Chapter 8 in J. Svejnar (ed.) The Czech Republic and Economic Transition in Eastern Europe. Academic Press: New York. (pp )

4 World Bank (1999) Corporate Governance, Chapter IV in Czech Republic: Capital Market Review. (pp ) Optional: John Earle, R. Frydman, A. Rapaczynski, and J. Turkewitz (1994) The Czech Republic, Chapter 1B, Privatization of Retail Trade and Services, Small Privatization: The Transformation of Retail Trade and Consumer Services in the Czech Republic, Hungary and Poland. Central European University Press: New York (pp ) Gerard Roland (2000) Comparing Policies of Privatization and Restructuring, Chapter 10 in Transition and Economics: Politics, Markets, and Firms. MIT Press: Cambridge, Mass. (pp ) Financial Sector Reform Robert Anderson (2000) "From State Hands to private within two Years," Financial Times Survey of the Czech Republic, September 26, 2000 p. 3. European Bank for Reconstruction and Development (E.B.R.D) (1998) Financial Sector in Transition Part II in Transition Report Ch. 5: Financial Institutions and markets in Transition Economies (pp ) Ch. 7: Performance of Financial Institutions Lessons form Transition Banking (pp ) Ch. 8: Promoting Stable Expansion of Banking (pp ) "Restoration Work" The Economist, Nov. 15, pp Joseph Stiglitz (1994) Reform of Capital Markets Chapter 12 in Whither Socialism? MIT Press: Cambridge, Mass. (pp ) Class Speakers: Cuauhtemoc Velasco, Rinku Shah; Steve Stowes; Michael Thompson Guest Speaker: Prof. Mirek Lizal, CEGE-EI, Charles University Feb. 8: Income Inequality, the Labor Market and Social Policies Topics to be discussed: Social problems arising from transition to markets and how has the government dealt with these problems: Ex., pension reform, creation of an unemployment benefit system, changes in social welfare system, underground economy, Romany people, gender issues. European Bank for Reconstruction and Development. (E.B.R.D.) Transition Report Chapter 5: "Labour markets, unemployment and poverty during the transition," (pp )

5 Chapter 6: "Human Capital, Technology and skills (pp ) Thesia Garner and Katherine Terrell (1998) A Gini Decomposition Analysis of Inequality in the Czech and Slovak Republics During the Transition, The Economics of Transition, 6 (1): (this is not in coursepack, will be given to you seperately) Class Speaker: Manabu Sawa, Vimal, Ranchhod, Laura Rivera, Choi Cahng-Yong; and Erika Li "guest" Speaker: Prof. Terrell! FRIDAY Feb. 9: The Velvet Divorce *** special Class 10:00-11:30*** Topics of this class: What led to the splitting of Czechoslovakia and what implications did this have for the two republics? Michael Kraus and Allison Stanger (2000) Contending views of Czechoslovakia s Demise, Ch. 1 "Lessons from the Breakup of Czechoslovakia" Ch. 19 in M. Krause and A. Stanger (eds.) Irreconcilable differences? Explaining Czechoslovakia s Dissolution. Rowman and Littlefield Publishers: New York. (pp. 7-25). Also read Vaclav Havel's introduction to the book. Otto Ulc (1996) "Czecholovakia's Velvet divorce" East European Quarterly, Boulder, Fall, (14 pp.) Guest Speaker: Prof. Michael Kraus, Politics Department, Middlebury College Feb. 15: Issues of Foreign Policy and International Security Topics of this class: What led to the splitting of Czechoslovakia and what implications did this have for the two republics? Issues of international security were loomed after the velvet revolution but became even larger after the velvet divorce -- how has the government dealt with this (NATO)? Some potential topic that can be discussed: WWII reparation issues with the Germans and NATO enlargement. Madeline Albright (1997) "Enlarging NATO: Why bigger is Better," Economist, Feb. 15 Class Speaker: Sam Carroll, Aiman Mackie; Cortney Robinson, Deborah Michaels. Friday, February 16: TAKE-HOME EXAM HANDED OUT Monday, February 19: TAKE-HOME EXAM IS DUE by 5:00p.m. by or in my WDI office

6 Feb. 22: Current Policy Issues: EU Membership Topics to be discussed: current domestic political issues; re EU membership, what are the concerns of EU members? of the Czechs? Implications for agricultural policy, environmental policy, trade policy, immigration policy, labor policy, etc.? Tier jumping and its impact on the various countries in line for accession Political Missteps: Robert Anderson (2000) "Social Democrats Succeed at an Uneasy Alliance," Financial Times Survey of the Czech Republic, September 26, 2000 p. 1. Karen Lowry Miller (1997) "After Klaus: Can the Czechs do more than Talk about Reform?" Business Week, New York, Dec. 15, p. 56 EU Membership: Robert Anderson (2000) Pace Quickens as more chapters open: Fierce EU criticism stings feuding Czechs into action Financial Times Survey of Central and Eastern Europe, October 24, p. iv. Bruce Barnard and Terry Martin (2000) "EU Enlargement," Europe. Washington, June (3 pages) Robert Feldman and Maxwell Watson (2000) "Central Europe: From Transition to EU Membership," Finance & Development, September, Washington, 5 pages. Stefan Wagstyl (2000) Waiting for the EU to Decide Financial Times Survey of Central and Eastern Europe, October 24, p. i. Stefan Wagstyl and Robert Anderson (2000) "Reluctant reformer finally Embraces Change," Financial Times Survey of the Czech Republic, September 26, 2000 p. 1-2 OECD Economic Suveys, Czech Republic, (2000) Ch. 1: Recent Economic Trends and Prospects (pp Ch. 2: Macroeconomic Management (pp.37-46) Ch.3: Progress in Structural Reform (pp ) Class Speaker: Nicole Green, Sarah Borwick, Josh Benninghoff, Kyle Grieser Guest Speaker: Lenka Zlamalova, Michigan Journalism Fellow (journalist for Mlada Fronta Dnes)