Transition Economies Asst.Prof. Betül YÜCE DURAL October 2009

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

Transformation-Transition Transition from Plan to Market  Economic  Social  Political

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

Enlargement  1957 Treaty of Rome :  1957 Treaty of Rome 6 founders:  Belgium, France, West Germany, Italy, Luxemburg, the Netherlands.  Four successful enlargement followed as: 1973 Denmark, Ireland, the United Kingdom 1981 Greece 1986 Portugal and Spain 1995 Austria, Finland, Sweden.

 1993 Copenhagen European Council – Invitation if they wish… Invitation if they wish…

 Application dates for EU membership (In date order-chronology)  Türkiye 14 April 1987  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

 1st May 2004 enlargement: Hungary, Poland, Czech Rep. Slovakia, Slovenia, Lithuania, Latvia, Estonia, Cyprus and Malta.  1st January 2007 enlargement: Bulgaria and Romania.

Capitals of CEEC 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

Capitals of CIS 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

 Official candidates: Croatia, Macedonia and Türkiye.  Officially recognised as Potential Candidates: Albania, Bosnia and Herzegovina, Montenegro, Serbia and Iceland. 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.

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

Benefits of enlargement to the EU Benefits are both political and economic : Benefits are both political and economic :  win-win situation for both sides (CEECs and EU)  The increase in the area of peace, stability and welfare will increase the safety of everyone in the continent.  Remove the fear of Socialism in that area.  EU market with 370 million people + over 100 million CEECs people = positive effects for both sides, will create new jobs.

 New members increase the quality of life standards of all Europeans; common standards and cooperation in environmental protection, crime, drugs policies and combating with illegal migrants.  New members will increase the effectiveness of EU in the world economy with Common Foreign and Security Policy, Trade Policy and Global governance.

Benefits of being a member of EU to the CEECs  Respectability in world politics  Credibility of attraction of FDI  To settle and stable the new democratic regime and to establish confidence  To settle the stability  Entrance into the world’s biggest market  Easy reach to the regional and structural funds

Costs of CEECs membership to the EU- Problems  Diversity of opinions in the parliament and commission  Differences in national interests  Economic and politic backgrounds of new members-initial conditions  Insufficient infrastructure and development  Common agriculture policy (CAP)

Economic Systems  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.

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

 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.

 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.

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)

 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 “……..”.