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Lending stability to Europe's emerging market economies: On the importance of the EC and the ECU for East-Central Europe

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  • Schmieding, Holger

Abstract

The standard literature lists three ways in which the Western industrialised countries could support the transformation process in Europe's emerging market economies (EMEs): technical assistance, financial aid and trade access (see i.a. World Bank 1991, p. iv) . Important as such support would be, it may not suffice. This paper adresses the question whether the West could make a further major contribution: lending institutional stability to the EMEs. The starting point is the observation that an institutional deficiency or even void is one of the major causes of the transformation crisis. ' The old institutions have largely vanished; the emergence and consolidation of new and ultimately far superior institutional arrangements takes time; the nascent local institutions lack stability and credibility. Whereas the issues of credibility and institutional stability have featured prominently in the debate on some internal aspects of the transformation process, they have played no major role in the discussion on how the West could support the EMEs and how East-Central Europe could and should be incorporated into the process of European integration.

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  • Schmieding, Holger, 1991. "Lending stability to Europe's emerging market economies: On the importance of the EC and the ECU for East-Central Europe," Kiel Working Papers 481, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:481
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    1. Holger Schmieding, 1988. "What about a Liberalization Club for an Open World Economy?," The World Economy, Wiley Blackwell, vol. 11(4), pages 515-528, December.
    2. Bofinger, Peter, 1991. "Options for the Payments and Exchange Rate System in Eastern Europe," CEPR Discussion Papers 545, C.E.P.R. Discussion Papers.
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    8. Portes, Richard, 1991. "The Transition to Convertibility in Eastern Europe and the USSR," CEPR Discussion Papers 500, C.E.P.R. Discussion Papers.
    9. Hofman, Bert & Koop, Michael J., 1990. "Monetary overhang and the dynamics of prices, exchange rates, and income in the transition to a market economy," Kiel Working Papers 418, Kiel Institute for the World Economy (IfW Kiel).
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    Cited by:

    1. Buch, Claudia M., 1994. "Dealing with bad debt: Lessons from Eastern Europe," Kiel Working Papers 642, Kiel Institute for the World Economy (IfW Kiel).
    2. Funke, Norbert, 1993. "Timing and sequencing of reforms: Competing views," Kiel Working Papers 552, Kiel Institute for the World Economy (IfW Kiel).
    3. Schmieding, Holger, 1991. "External protection for the emerging market economies? The case for financial liberalisation instead of import barriers in Eastern Europe," Kiel Working Papers 498, Kiel Institute for the World Economy (IfW Kiel).
    4. Buch, Claudia M. & Koop, Michael J. & Schweickert, Rainer & Wolf, Hartmut, 1995. "Währungsreformen im Vergleich: monetäre Strategien in Rußland, Weißrußland, Estland und der Ukraine," Open Access Publications from Kiel Institute for the World Economy 831, Kiel Institute for the World Economy (IfW Kiel).
    5. Schweickert, Rainer & Nunnenkamp, Peter & Hiemenz, Ulrich, 1992. "Stabilisierung durch feste Wechselkurse: Fehlschlag in Entwicklungsländern - Erfolgsrezept für Osteuropa?," Kiel Discussion Papers 181, Kiel Institute for the World Economy (IfW Kiel).
    6. Norbert Funke, 1993. "Credibility of government policy: Lessons for economies in transition," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 28(2), pages 73-78, March.
    7. Schrader, Klaus, 1994. "Estland auf dem Weg zur Marktwirtschaft: eine Zwischenbilanz," Kiel Discussion Papers 226, Kiel Institute for the World Economy (IfW Kiel).
    8. Buch, Claudia M., 1993. "An institutional approach to banking reform in Eastern Europe," Kiel Working Papers 560, Kiel Institute for the World Economy (IfW Kiel).

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