IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Social Aspects of Industrial Restructuring and their Financing

Listed author(s):
  • Paul G. Hare

The paper starts by outlining some basic definitions and conceptions of restructuring, noting that in transition economies the needed scale of restructuring is substantial, with the result that unemployment, and the associated social costs, can turn out to be very high unless the process of change is well managed. In what follows, I clarify what is meant by the social aspects of restructuring and give some examples to illustrate why dealing with them might be difficult. Then we examine the financial outlays associated with the identified social costs and consider various views of who should pay for them. Next, we highlight some key trade-offs in the restructuring process, starting from the observation that many countries, not exclusively, but especially countries from the CIS, have bowed to political pressures and allowed restructuring to be delayed, ostensibly for social reasons. While acknowledging that this is an appealing line of argument, I shall argue that in the longer term it is exceptionally costly. The argument continues by identifying a few aspects of restructuring that seem to me to be unusually problematic for transition economies, especially for those that are not on track to join the EU in May 2004. These aspects include the special problems faced by small states, and those faced by rapidly declining regions within larger states. We conclude with a list of major findings about the social aspects of restructuring and their financing, plus a short list of suggested policy recommendations.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 0305.

in new window

Date of creation: 2003
Handle: RePEc:hwe:certdp:0305
Contact details of provider: Postal:
Edinburgh EH14 4AS

Phone: +44(0)131 451 3497
Fax: +44(0)131 451 3497
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hwe:certdp:0305. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Colin Miller)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.