Transcript 20 YEARS AFTER+TRANSITION(Fatih

TWENTY YEARS AFTER
TRANSITION
FATİH ŞAHİN
63085180876
YAŞAR ÖZDEN İNCELER
65350080096
BEGINNING OF TRANSITION
• People all over the world have been reviving
memories of 20 years ago,when the Berlin Wall
was finally brought down.
• There were the scenes of people coming together
again, after years of division and hopeless
separation.
• The peoples of Central and Eastern Europe and
their governments walked towards history, driven
by the hope for freedom.
• The past 20 years have been an unprecedented
success, both economically as well as politically.
Democracy has taken root. The economies have
grown. People have prospered.
• Economic transition equals privatisation,
liberalisation and stabilisation.
OECD TRANSITION ECONOMICS
PROGRAMMES
•
•
•
•
Free prices,
Free trade,
Free labour markets,
Privatization and competition transformed the
economies of the Czech Republic, Hungary, Poland
and the Slovak Republic.
• The multiyear efforts of economic stabilisation and
structural transformation brought about large
benefits.
• The four countries became magnets for foreign
direct investment and a new growth pole in Europe
• Real GDP per capita expanded more than twice as
fast than in most OECD countries
• OECD members have often distinctive blends of
institutional and policy frameworks,reflecting their
history and cultures
• OECD working instuments such as Codes of
Liberalisation, were also standards for successful
reform
LESSONS LEARNED FROM
TRANSITION
• Decades of central planning distorted societies
and economies dramatically. The effects are
still apparent in differentiated social and
economic performance.
(East Germany, which was more advanced industrially than
the West before the war, but today it is still catching up, in
spite of over a trillion Euros’ worth of support for its
transition.)
LESSONS LEARNED FROM
TRANSITION
• Expectations for a speedy completion of transition
were unrealistic.
• In none of the Central and Eastern Europe countries
and the former Soviet Union has transformation
been smooth and linear.
LESSONS LEARNED FROM
TRANSITION
• Needed stronger institutional transformations
Creating democratic institutions and governance,
new social norms and values,
stronger civil societies,
 openness to private organisations and to
entrepreneurship,
and a network of regulators is related to this partial
reform
CURRENT CHALLENGES AND
OPPORTUNITIES
• The lessons learnt during the last 20 years for the
economies in transition may shed some light when
reconstructing a better world economy.
• Over the longer term, building knowledge societies
and greening the economy would become
increasingly important to sustain the prospects for
growth
CURRENT CHALLENGES AND
OPPORTUNITIES
It is therefore, vital to continue reforms to improve
the business climate in those countries and to
create more favourable conditions for a second
wave of investment, more tilted towards services,
as well as for upgrading infrastructure.
• This points to the need of increasing investment in
knowledge capital, and in creating adequate
conditions for R&D activities. In all these areas the
OECD is ready to help, as they deliver their
innovation and green growth strategies.
•
TWENTY YEARS AFTER : CENTRAL AND EASTERN
EUROPE COPING WITH COMMUNIST LEGACY
• Twenty years after the fall of communism,
countries of the former Soviet bloc have
democratic political systems, are members of
international organizations such as the EU and
NATO, and few even have the euro.
• But their societies are still coping with the
aftermath of their totalitarian past, which is
proving to be a painful and a much longer process
than might have been imagined 20 years ago.
TWENTY YEARS AFTER : CENTRAL AND EASTERN
EUROPE COPING WITH COMMUNIST LEGACY
• Right after the fall of communism 20 years
ago, the most optimistic forecasts predicted
that countries like Czechoslovakia, Hungary
and Poland would catch up with the
developed and stabilized western democracies
in just a few years.
TWENTY YEARS AFTER
THE FALL OF BERLIN WALL
• Economically the East German transition proved far
more difficult than anyone thought at the outset.
• East Germans took their political future in their
hands in the fall of l989. They can be proud of
finally contributing to the downfall of the regime
that walled them in.
TWENTY YEARS AFTER
THE FALL OF BERLIN WALL
• In essence East Germany can be said to have faced
a dual transition: one to capitalism,
the second to the post-industrial economy that had
taken hold in the non-socialist world, while they
remained in their collectivist CMEA cocoon.
• The East German population similarly wanted
welfare capitalism, but got what they saw as neoliberalism. It was not necessarily a bad deal, but
they found it a disquieting one.
CONCLUSIONS
• Specific aspects with regards to the transition
economies are facing domestic challenges(Like in
mature capitalist countries these countries need to
attempt to protect their core financial systems by
improving its governance and structure.)
• A major challenge will be to maintain access to
finance for the growth driving SME(Small Medium
Entriprises) sector
CONCLUSIONS
• The overriding problem will be the fiscal
constraint, which was restricting growth in the past
and is now leading the region into deeper recession
than the rest of the world.
• Intelligent industrial policy is required in time of a
shrinking private sector and a constraint
government budget.
CONCLUSIONS
• Finally it should be emphasized that there were
different paths of transition.
• What seems clear is that even after 20 years
transition is not over, in fact the current crisis of
global capitalism is the intellectual challenge for
thought on formation of human societies
THANK YOU FOR LISTENING