Exercise 3

 

 

A) Please decide whether the following statements are correct or not.

Q1: Intuitively, transition refers to a process where economies are on a known and predictable trajectory, leading from communism to a democratic market economy. (p. 333) CORRECT

Q2: Transition countries are all alike. (p. 334) INCORRECT (Just the opposite is the case.)

Q3: According to Gilpin, the former communist countries have to first eliminate corrupt and deficient structures before they embark on building an effective and new political and economic structure. CORRECT

Q4: According to the neoliberal convergence explanation, the postcommunist recession was not an inevitable consequence of the transition process (p. 335) INCORRECT (It was inevitable.)

Q5: According to the cultural legacy explanation, the bad habits and mentalities of the past can change only slowly. (p. 335) CORRECT

Q6: One of the most important guiding ideas of transition was that private enterprises were considered to be the key agents of political and economic changes in the region. (p. 337) CORRECT

 Q7: In a simplistic view, institutional transformation was believed to entail a substitution of the market for the state. (p. 337) CORRECT

 Q8: According to Gilpin, the neoliberal-inspired transition produced many corrupt and inefficient states. (p. 337) CORRECT

Q9: In all of the former communist countries, state property was transferred to honest and efficient privates. (p. 338)  INCORRECT (State property was “sold” to former communists, corrupt bureaucrats and political favourites.)

Q10: “Winner take all” politics means that the beneficiaries of partial reforms were not interested in supporting further reforms. (p. 339) CORRECT

 

B) Please select the right answer (only one correct answer exists).

 

Q1: Transition is … (p. 334)

(a) a path-dependent process.

(b) a short-term process.

(c) a journey.

(d) a waste of time.

 

Q2: How can China be best described? (p. 334)

(a) A combination of a consensual democracy and a mixed market economy.

(b) A combination of many different types of political regimes with a competitive market economy.

(c) A combination of a highly autocratic political regime and a market-type economy.

(d) A combination of a democratic political regime and a command economy.

 

Q3: Following the collapse of communism, countries… (p. 334)

(a) suffered severe recession.

(b) experienced a speedy industrialisation.

(c) experienced an economic Canaan.

(d) caught up with advanced industrialised nations relatively quickly.

 

Q4: Which are the three basic explanations for the relatively bad performance of CEE countries? (p. 335)

(a) neostructuralism, legacy, governance

(b) neoliberalism, cultural legacy, crisis-of-governance

(c) crisis view, liberalism, communitarianism

(d) neomediavelism, neomercantilism

 

Q5: According to the neoliberal convergence explanation, the shift from … takes time. (p. 335)

(a) a buyer-oriented economy to a buyer-oriented one

(b) a buyer-oriented economy to a seller-oriented one

(c) a seller-oriented economy to a seller-disoriented one

(d) a seller-oriented economy to a buyer-oriented one

 

Q6: Which type of explanation assumes that “it is the nature of reforms that matters get worse before they get better”? (p. 335)

(a) neoliberalism

(b) neostructuralism

(c) cultural legacy

(d) crisis-of-governance

 

Q7: Which of the following are associated with the cultural legacy explanation? (p. 335)

(a) the triumph of market

(b) inefficient institutions

(c) revival of nationalism and ethnic conflicts

(d) wars and political defeat

 

Q8: According to the crisis-of-governance view, … (p. 336)

(a) there was an intense fear of communist comeback.

(b) the market was able to solve everything.

(c) a debt crisis threatened CEE countries.

(d) governments should have followed market rules.

 

Q9: The crisis-of-governance view claims that … (p. 337)

(a) reformers replaced the eliminated state apparatus relatively quickly with new and competent institutions.

(b) reformers did not replace the eliminated state apparatus with new and competent institutions.

(c) reformers replaced the eliminated state apparatus relatively quickly with the old and inefficient institutions.

(d) communists replaced the eliminated state apparatus relatively quickly with new and competent institutions.

 

Q10: Why was it necessary for former communist countries to sell their properties to foreign owners? (p. 338)

(a) Foreign buyers did not provide capital, technology and know-how in exchange.

(b) Foreign buyers provided capital, technology and know-how in exchange.

(c) Nobody was ready in these countries to launch their own business.

(d) Because foreigners provided political stability in the region.

 

 

C) What constitutes a transition (or transition problem)? Note: several correct answers may exist. (p. 336)

(a) The move from one given point to another predetermined point.

(b) The implementation of several complex tasks.

(c) An easy ride.

(d) The liquidation of inefficient capacities.

(e) The sell of property to foreigners.

(f) Marketisation.

(g) The reduction of unemployment.

(h) Privatisation of state-owned property.

(i) The creation of a new civic culture of public virtues.