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Transition Economies

Transition Economies. Asst.Prof. Betül YÜCE DURAL October 2009. 1- Central and Eastern European Countries- CEECs. 2- Commonwealth of Independent States-CIS. Transformation-Transition Transition from Plan to Market. Economic Social Political. CEEC 1991 Fall of socialism 1 May 2004

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Transition Economies

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  1. Transition Economies Asst.Prof. Betül YÜCE DURAL October 2009

  2. 1-Central and Eastern European Countries-CEECs 2-Commonwealth of Independent States-CIS

  3. Transformation-TransitionTransition from Plan to Market • Economic • Social • Political

  4. CEEC 1991 Fall of socialism 1 May 2004 Full membership TÜRKİYE *1987 application October 2009 Negotiations and hopes still go on, but full membership might be a dream. EU membership

  5. Enlargement • 1957 Treaty of Rome 6 founders: • Belgium, France, West Germany, Italy, Luxemburg, the Netherlands. • Four successful enlargementfollowed as:1973  Denmark, Ireland, the United Kingdom1981  Greece1986  Portugal and Spain1995  Austria, Finland, Sweden.

  6. 1993 Copenhagen European Council – Invitation if they wish…

  7. Application dates for EU membership (In date order-chronology) • Türkiye            14 April 1987  • Cyprus               3 July 1990 • Malta 16 July 1990 • Hungary        31 March 1994 • Poland            5 April 1994 • Romania           22 June 1995 • Slovakia           27 June 1995 • Latvia            13 October 1995 • Estonia   24 November 1995 • Lithuania            8 December 1995 • Bulgaria        14 December 1995 • Czech Republic  17 January 1996 • Slovenia            10 June 1996

  8. 1st May 2004 enlargement: Hungary, Poland, CzechRep. Slovakia, Slovenia, Lithuania, Latvia, Estonia, Cyprusand Malta. • 1st January 2007 enlargement: BulgariaandRomania.

  9. Capitals of CEEC • Romania- Bucharest • Hungary- Budapest • Poland-Warsaw • Bulgaria-Sofia • Estonia -Tallinn • Czech Republic - Prag • Slovakia - Bratislava • Slovenia - Ljubljana • Albania -Tirana • Latvia - Riga • Lithuania - Vilnius • Croatia -Zagreb • Moldova - Chisinau • FYROM(Former Yugoslav Republic of Macedonia) - Skopje • Republic of Kosovo- Pristina • Bosnia and Herzegovina- Sarajevo • Serbia- Belgrad • Montenegro- Podgorica

  10. Capitals of CIS • Russia-Moskow • Kazakstan -Astana • Turkmenistan- Ashgabat • Azerbaijan -Bakü • Kyrgyzstan -Bishkek • Tajikstan -Dushanbe • Georgia -Tbilisi • Uzbekistan -Tashkent • Armenia -Yerevan • Ukraine - Kiev • Belarus -Minsk

  11. Official candidates: Croatia, Macedonia and Türkiye. • Officially recognised as Potential Candidates: Albania, Bosnia and Herzegovina, Montenegro, Serbia and Iceland. Kosovo is also listed as a potantial candidate but the EU commission does not list it as an independent country because not all member states recognise it as an independent country from Serbia.

  12. 5th enlargement is the biggest one in terms of area, culture, history, population…etc.

  13. Benefits of enlargementtothe EU Benefitsarebothpoliticalandeconomic: • win-win situation for both sides (CEECs and EU) • Theincrease in thearea of peace, stabilityandwelfarewillincreasethesafety of everyone in thecontinent. • Removethefear of Socialism in thatarea. • EU market with 370 millionpeople+over 100 millionCEECspeople=positiveeffectsforbothsides, willcreatenewjobs.

  14. New membersincreasethequality of life standards of allEuropeans; commonstandardsandcooperation in environmentalprotection, crime, drugspoliciesandcombatingwith illegal migrants. • New memberswillincreasetheeffectiveness of EU in theworldeconomywithCommon Foreign and Security Policy, TradePolicyand Global governance.

  15. Benefits of being a member of EU totheCEECs • Respectability in world politics • Credibility of attraction of FDI • To settle and stable the new democratic regime and to establish confidence • Tosettlethestability • Entranceintotheworld’sbiggest market • Easyreachtotheregionalandstructuralfunds

  16. Costs of CEECsmembershiptothe EU-Problems • Diversity of opinions in theparliamentandcommission • Differences in nationalinterests • Economicandpoliticbackgrounds of newmembers-initialconditions • Insufficientinfrastructureanddevelopment • Commonagriculturepolicy (CAP)

  17. EconomicSystems An economic system is the system of production, distribution and consumption of goods and services of an economy. Alternatively, it is the set of principles and techniques by which problems of economics are addressed, such as the economic problem of scarcity through allocation of finite productive resources. The economic system is composed of people and institutions, including their relationships to productive resources.

  18. Examples of contemporary economic systems include capitalist systems, socialist systems, and mixed economies.

  19. An economic system is a set of methods and standards brought by which a society decides and organizes the allocation of limited economic resources to satisfy unlimited human wants. At one extreme, production is carried in a private-enterprise system such that all resources are privately owned. It was described by Adam Smith as frequently promoting a social interest, although only a private interest was intended. At the other extreme, following Karl Marx and Vladimir Lenin is what is commonly called, such that all resources are publicly owned with intent of minimizing inequalities of wealth among other social objectives.

  20. Alternatively, 'economic system' refers to the organizational arrangements and process through which a society makes its production and consumption decisions. In creating and modifying its economic system, each society chooses among alternative objectives and alternative decision modes. Many objectives may be seen as desirable, like efficiency, growth, liberty, and equality.

  21. Basic types Economic systems The basic and general economic systems are: Market economy (the basis for several "hands off" systems, such as capitalism). Mixed economy (a compromise economic system that incorporates some aspects of the market approach as well as some aspects of the planned approach). Planned economy (the basis for several "hands on" systems, such as socialism, or a command economy). Traditional economy (a generic term for the oldest and traditional economic systems) Participatory economics (a recent proposal for a new economic system) Inclusive Democracy (a project for a new political and economic system)

  22. There are several basic and unfinished questions that must be answered in order to resolve the problems of economics satisfactorily. The scarcity problem, for example, requires answers to basic questions, such as: what to produce, how to produce it, and who gets what is produced. An economic system is a way of answering these basic questions, and different economic systems answer them differently. • Totally new system, hundred years later will be called as “……..”.

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