Your final and fourth test will be on Monday, April 30 at in 103 at 10:30. You will have two hours for the test. You may use Kornai's paper on success and disappointment of the economic transition as your takehome option. If you choose it your paper should identify 3 areas of success and 3 areas of disappointment common to Eastern and Central European countries.
The format of the test is short answers drawn from 4 sections. The general theme of the test is specific cases of economic transition grouped into four categories:
I. The Former Soviet Union and newly independent states (Chapter 11) and the survey on Central Asia (handout in class)
The factors that contributed to fast track accession of the Baltic states into the European union.
The legacies of the Soviet economic interdependence as a transition constraint in Central Asia.
The economic and political motives for Russia's choice of shock therapy and voucher privatization.
The difficulties of integration into the world economy in Ukraine.
II. East and Central European countries namely Poland ( Chapter 12, pp.346, 348-349, 351-359, Cheer Up, Survey of Poland) Czech Republic (Chapter 12, pp.351 and class notes) and Hungary (Chapter 13, pp.369-384): the choices in the speed of economic reform, the progress in economic transition and specifics of privatization.
Compare the rationale of shock therapy rationale in Poland and Russia. Where was it more successful?
Compare and contrast the role of the banks in Czech Republic and Hungary.
What did East European countries have in common on the eve of economic transition?
III. German re-unification and economic transition of East Germany ( Chapter 9, pp.245-259)
Why is East Germany lagging behind Poland in resuming economic growth?
What were the flaws of East German reunification strategy with regard to privatization?
IV. Special case of Cuba: whither economic transition? (Cuba reading)
The history of reforms in Cuba and regional positioning.
Cuban comparative and competitive advantage and the the strategy of complementarity in the region.
The likely path for Cuban post Castro evolution.
The reading for take home test 3 question is linked below( see When the transition over ? Chapter 6). You need to outline the argument by J. Kornai about the criteria for a completed transition. You will compare his criteria to that of Gelb and Aslund and explain why these three have different standards for completed economic transition. The format is 2-3 pages in lieu of one test question.
Your test will be short answers drawn from three consecutive sections namely the nature of economic transition, the criteria for its completion, the makeup of initiatives constituting economic transition
The list of review questions for test three:
Discuss the differences between economic reform and economic transition. What is the role of the state in either process?
Compare and contrast two versions of economic transition: simultaneity approach and gradualist approach. Which one is better suited for longer pre-existed socialism?
What is the main argument for the country specific criteria for completion of economic transition forwarded by A. Gelb?
To which extent complying with the accession requirements to the EU constitutes criteria for completed economic transition
Why would the end of economic rent seeking behavior mark an acceptable point for completed economic transition?
What are the benefits and costs of shock therapy as a method of economic transition? What are the short versus long-term tradeoffs?
What is the major argument in favor of gradualism in economic transition? What school of economic thought would recommend it?
If gradualism is a mode of economic transition what is the sequence of initiatives in the order of their relative importance?
List four methods of privatization. Which one is least likely to provide for increased economic efficiency?
What are the economic and political arguments in favor of voucher privatization?
Upon finishing chapter 2 you are required to write a paper on A.Gelb's criteria for a completed transition. The format is 1-2 page essay detailing the following topics:
the goal of transition
the progress of transition
judging transition as successful and complete
Snow makeup assignment was e-mailed to you. You can also see it on Resources page at Gertrude Shroeder.
Review questions for test 2.
Discuss central planning advantages and disadvantages.
Explain the discontinuous nature of centralized plans and the nature of a shortage economy.
Discuss the success criteria for socialist individual enterprises under physical quota requirements and profit compliance requirements.
Discuss 5 characteristics of participatory economy. Which of its traits is generating unemployment?
Why did real socialism accept two different forms of property rights namely state and cooperative?
What are the sources of the second economy in real socialism environment?
Define SBC and explain the motive for loss making by enterprises and rescue of them by the government? Is SBC typical of real socialism only? How can it be hardened?
What are the functions of prices in real socialism? Are they allocative, informational or distributional?
Explain ratchet effect in real socialism and in real actual capitalism. What are its implication for the whole economy?
What are three types of protectionism that G. Shroeder refers to in the paper on Treadmill of reforms? How is thi protectionism different from Kornai's SBC?
What are the varieties of market socialism according to Shleifer and Vishny? Why cannor democratic socialism deliver economic efficiency?
Test 1 will be on January 29. It will cover section I of your syllabus. You have an option of one question done before the test. The list below spells out some options:
What was the initial stage of socialist philosophy? What was its connection with Christianity?
Why did revolutionary socialists view private property as the ultimate source of inequality?
Why does socialism require a revolution to be implemented according to some socialists?
How did views of Blanqui differ from that of Proudhon?
What did St. Simon, Fourier and Owen have in common?
What was Marx's view of waged labor and its entitlement for the product it produces?
What is the most important function of the state under socialism?
Why does socialist evolution require the dominance of a communist party?
What is the difference of classical and transition socialism?
What is the internal rational for socialist countries to have a monopoly of the Communist power on economic and political decisions?
What are the three types of actual socialism identified by J. Kornai?
What is the nature of export of socialism?
What are the main differences between Soviet style socialism and centrally planned economy one?
What are the differences between Stalinism and Maoism?
What are the main arguments in support of feasibility of socialism according to O. Lange?
Why is socialism unfeasible as an economic mechanism according to von Mises?
What is market socialism?
For class on January 9 read Rosser and Rosser, pp.51-60 and check out K. Marx The Critique of the Gotha Program ( resources link)
For class discussion on Wednesday, January 17, compose talking points for the following questions:
What is the view of Marx on labor?
What products of labor should belong to the worker?
What is the nature of socialism?
What is the role of the government during the socialist stage?
The history of socialism as a political movement:
http://www.answers.com/topic/history-of-socialism