Privatization at the End of the Century (Publications of the Egon-Sohmen-Foundation)

At the end of the century, privatization has become a worldwide phenomenon. It is taking place in what was once called the first, the second, and the third world. The volume mirrors this expansion of privatization. In Part I on the economics of privatization, historical, theoretical, and politico-economic issues are covered. In Part II country studies are presented for China, the Czech Republic, Eastern Germany, Estonia, Hungary, Poland, Russia and the United Kingdom. In Part III a broader view on privatization is taken by including deregulation and the private provision of public goods and services.The book contains contributions by D.Bös, T.Eggertsson, R.P.Heinrich, P. Jasinski, H.Klodt, B.Krug, D.Lal, S.C.Littlechild, M. Mejstrik, P.Mihalyi, P.Plane, J.-J.Rosa, K.M.Schmidt and M.Schnitzer, and U.Siegmund. Front Matter....Pages i-x Front Matter....Pages 1-1 When the State Changes Its Mind: The Puzzle of Discontinuity in Government Control of Economic Activity....Pages 3-27 Privatization and Economic Growth: Reflections and Observations....Pages 29-52 An Alternative to Privatization: Coping with Managerial Slack in Public Firms....Pages 53-67 Public Choice Aspects of Privatization Policies: Driving Forces and Obstacles....Pages 69-96 Methods of Privatization: Auctions, Bargaining, and Giveaways....Pages 97-133 Comment on the Methods of Privatization: Politico-Economic and Historical Issues....Pages 135-143 Front Matter....Pages 145-145 Privatization in the United Kingdom and Poland: The Model and Its Transformation....Pages 147-173 Privatization in Eastern Germany: The Never-Ending Story of the Treuhand....Pages 175-197 Privatization in the Czech Republic and Russia: The Voucher Model....Pages 199-233 Privatization in Estonia and Hungary: Selling Out....Pages 235-258 Comment on the Hungarian Experience: Trade Sales versus Mass Privatization....Pages 259-267 Privatization in China: Something to Learn From?....Pages 269-293 Front Matter....Pages 295-295 Regulation of Privatized Networks: The Case of Telecommunications....Pages 297-321 Comment on the Regulation of Privatized Networks: The Case of Electricity Industry....Pages 323-327 Private Provision of Public Goods and Services....Pages 329-361 Back Matter....Pages 363-367 On June 1, 1990, Egon Sohmen would have reached the age of 60 had he not suffered from a fatal illness. It demanded his death at the early age of 46. If he were still with us, he would playa prominent role in the current debate on monetary arrangements and on allocation theory, perhaps in­ cluding environmental issues and urban economics. His contributions are well remembered by his colleagues and friends, by his former students, and by many in the economics profession on both sides of the Atlantic. In extrapolating his great achievements as a scholar and teacher beyond the time of his death, one is inclined to suppose that Egon Sohmen's name would figure high on many a list of candidates for honors and awards in the field of international economics. For the reconstruction of economics in the German language area Egon Sohmen was invaluable. Born in Linz (Austria), he studied in Vienna at the Business School (Hochschule fUr Welthandel, now Wirtscha!tsuniversitiit), then went to the US as a Fulbright scholar (1953), returned to Europe to take his doctorate in Tiibingen, Germany, (1954) and crossed the Atlantic again to teach at MIT (1955-58) where he obtained a Ph. D. (1958) under Charlie Kindleberger. He might have stayed permanently in the US, con­ tinuing a career that he started as Assistant Professor at Yale University (1958-61), if the US visa provisions had been applied in a more liberal fashion. Environmental theory and policy are becoming central issues in economics as in other fields of science. This volume focuses on selected aspects of environmental economics. The four papers of the first part deal with more general aspects. They discuss the environmental limits to growth (Wilfred Beckerman), ecological concerns in a market economy (Johannes Heister and Friedrich Schneider), philosophical aspects of intergenerational justice (Joanna Pasek) and evolutionary economics as an approach to environmental problems (Georg Erdman). The three papers of the second part deal with policy instruments. They discuss the designing of markets for CO2 emissions and other pollutants (Johannes Heister and Peter Michaelis), pollution charges as a source of public revenues (Wallace E. Oates) and the role of economic incentives for resourcemanagement in developing countries (Edward B. Barbier). The two papers of the third part deal with trade issues. They discuss the impactof domestic environmental policy on international trade (James A. Tobey) andthe economics of trade in endangered species (Joanne C. Burgess). The two papers of the final part deal with the global dimension. They discuss tropical deforestation (Torsten Amelung) and the question how much we should invest in preserving our current climate (William D. Nordhaus). The contributors include internationally renowned scholars This book is the sequel to Fighting Europe's Unemployment in the 1990s, the collection of papers presented at the Salzburg Symposium of the Egon-Sohmen-Foundation in 1994. Though the problem of un­ employment was urgent already then, it has not found a practical solution in the meantime, and even intellectually it remains somewhat of a mystery. A clue is offered by the contrast with the United States: they have the working poor; we, on the old continent, have the welfare recipients. This brings the relationship between unemployment and the welfare state to the fore. On closer inspection, however, the matter appears to be much more complicated than the transatlantic contrast suggests. Consider only that the welfare state and what is called'social policy'have a long tradition in Europe. They obviously did not pre­ vent or noticeably hamper the decline in unemployment in the 1950s and the emergence of full employment in the 1960s. This leaves room for various conjectures. Does the welfare state matter only after a long time lag or after it has grown too fast or too much beyond a critical size? Is it the welfare state per se that is harmful to employment or do its harmful effects arise only under certain conditions, e. g. The Environmental Limits To Growth: A Fresh Look / Wilfred Beckerman -- Ecological Concerns In A Market Economy: On Ethics, Accounting And Sustainability / Johannes Heister And Friedrich Schneider -- Philosophical Aspects Of Intergenerational Justice / Joanna Pasek -- Evolutionary Economics As An Approach To Environmental Problems / Georg Erdmann -- Designing Markets For Co[subscript 2] Emissions And Other Pollutants / Johannes Heister And Peter Michaelis -- Pollution Charges As A Source Of Public Revenues / Wallace E. Oates -- The Role Of Economic Incentives For Natural Resource Management In Developing Countries / Edward B. Barbier -- The Impact Of Domestic Environmental Policy On International Trade / James A. Tobey -- Economics Of The Trade In Endangered Species: Implications For Sustainable Management / Joanne C. Burgess -- Tropical Deforestation As An International Economic Problem / Torsten Amelung -- How Much Should We Invest In Preserving Our Current Climate? / William D. Nordhaus. Herbert Giersch, Ed. For The Egon-sohmen-foundation. Based On A Conference Held In Linz, Austria, In 1991. Includes Bibliographical References. In 1990, the countries of Central and Eastern Europe began or accelerated their transition to a market economy. This book addresses among others the following questions: (I) What are the fundamental causes of the collapse of the Soviet-type economic systems? (II) What major steps could be taken to make the transition process to a market economy irreversible and less painful? (III) What can be learned from West Germany's outstandingly successful postwar economic reforms? (IV) Is the issue of gradualism versus shock therapy still relevant? (V) If macroeconomic stability is a precondition, what is the role of privatization, deregulation and trade liberalization? (VI) What is the optimal sequence of steps in privatization, deregulation, liberalization and currency convertibility? (VII) How quickly may privatization be achieved? (VIII) Is the USSR really a special case and, if so, in what respects and for what fundamental reasons? (IX) How long in the transition period may the initial phase of disorder, chaos and decline last? (X) What can be learned from the experiences gathered so far in the major ex-communist countries? Following the five books listed above on an earlier page, the Egon­ Sohmen-Foundation herewith submits its sixth volume. Once again, it is a collection of academic papers that were discussed at a symposium sponsored by the Foundation and subsequently revised. Readers not familiar with the Foundation may be interested to know that it was established in 1987 by Helmut Sohmen of Hong Kong in memory of his late brother, Egon Sohmen (1930-1977). Egon Soh­ men was an international economist highly respected in North America and in Europe, notably for his work on flexible exchange rates and on the economics of allocation and competition. Born in Linz (Austria) and educated as an economist in Vienna, Tiibingen, and Cambridge, Mass., Egon Sohmen held teaching posts in several places (M.I.T., Yale, Frankfurt, Saarbriicken, Minnesota, and Heidelberg). As an active participant in numerous international con­ ferences and workshops, he truly belonged to the international research community of his time and age cohort. His lasting reputation greatly helped me to convene the active participants of this symposium. Salzburg Manifesto: Fighting Europe's Unemployment In The 1990s -- Pt. I. The Historical Record. Unemployment And The Structure Of Labor Markets: The Long View / Barry Eichengreen. Doing It Right? The U.s. Labor Market Response To The 1980s-1990s / Richard B. Freeman. Unemployment In The Oecd And Its Remedies / Patrick Minford -- Pt. Ii. Europe's Present Unemployment Crisis. Immigration And The European Labor Markets / Charles Wyplosz. Foreign Trade, Wages, And Unemployment / Richard N. Cooper. Unemployment And The Crisis Of The German Model: A Long-term Interpretation / Karl-heinz Paque -- Pt. Iii. Current Policy Issues. Reforming The Welfare State In Western Europe / Roland Vaubel. Lessons For Employment And Growth In Western Europe / Henri R. Sneessens. Unemployment In Central And Eastern Europe: East Meets West / Michael C. Burda. Herbert Giersch (ed.) For The Egon-sohmen-foundation. Papers Presented At A Symposium Held August 27-28, 1994 In Salzburg. Includes Bibliographical References. Pt. I. The Present Malaise. The Past Rise Of Social Security: Historical Trends And Patterns / Peter Baldwin. Moral Hazard In The Welfare State / Lars Soderstrom. Comment On Lars Soderstrom Moral Hazard In The Welfare State / Lars Calmfors -- Pt. Ii. The Welfare State At A Crossroad: Fundamental Choices. Pros And Cons Of A Negative Income Tax / Hans-georg Petersen. Comment On Hans-georg Petersen Pros And Cons Of A Negative Income Tax / Lars Soderstrom. The Future Scope For Self-reliance And Private Insurance / Alan Peacock. Comment On Alan Peacock The Future Scope For Self-reliance And Private Insurance / Peter Koslowski -- Pt. Iii. Reform Issues Of Specific Welfare Systems. The Swedish Model: Past, Present, And Future / Anders Forslund. Reforming The Welfare State: The German Case / Norbert Berthold And Rainer Fehn. Comment On Norbert Berthold And Rainer Fehn Reforming The Welfare State: The German Case / Nicholas Deakin. Herbert Giersch (ed.). Includes Bibliographical References. At the end of the century, privatization has become a worldwide phenomenon. It is taking place in what was once called the first, the second, and the third world. The volume mirrors this expansion of privatization. In Part I on the economics of privatization, historical, theoretical, and politico-economic issues are covered. In Part II country studies are presented for China, the Czech Republic, Eastern Germany, Estonia, Hungary, Poland, Russia and the United Kingdom. In Part III a broader view on privatization is taken by including deregulation and the private provision of public goods and services. The book contains contributions by D. Bös, T. Eggertsson, R.P. Heinrich, P. Jasinski, H. Klodt, B. Krug, D. Lal, S.C. Littlechild, M. Mejstrik, P. Mihalyi, P. Plane, J.-J. Rosa, K.M. Schmidt and M. Schnitzer, and U. Siegmund Unemployment is the most pressing issue of economic policy in present-day Europe. Why are unemployment levels so high? Why are they higher compared to the past and to countries outside Europe, notably the U.S.? What is the nature of this unemployment crisis? And, how can unemployment be reduced? These and related questions are addressed in this book by a number of experts on the subject of unemployment. The book is divided into three parts. Part I presents the history of unemployment, Part II deals with the nature and causes of the present unemployment crisis in Europe and Part III with policy measures to reduce unemployment. The volume contains contributions by S. Brittan, M.C. Burda, R.N. Cooper, B. Eichengreen, R.B. Freeman, P. Minford, K.-H. Paqué, H. Sneessens, R. Vaubel and C. Wyplosz Presents ten papers on the economic implications of international migration. Includes papers on the history of overseas migration from Europe to the USA from the mid 19th century to 1924 and economic theories of labour migration. Examines experiences of immigration in the USA in relation to the labour market, entrepreneurship and transmission of immigrant skills. Discusses lessons for European immigration policies with reference to social security and the ageing European population Deals with the transition in the East, the causes of the collapse of the old system, the lessons to be drawn from West Germany's 1948 reforms and the respective roles and the appropriate timing and sequencing of privatization, macroeconomic stabilization, deregulation and external liberalization. Focusing on selected aspects of environmental economics, this volume contains contributions on four major aspects of the subject: environmental limitations to growth; ecological concerns in a market economy; philosophical aspects of intergenerational justice; and evolutionary economics. Exploring the economic consequences of international migration, this volume contains a number of essays on such subjects as the economic performance of immigrants in labour markets and future migration policies. Many of the contributors focus on the US labour market. This volume is divided into three parts: the first part presents the history of unemployment, the second part deals with the nature and causes of the present unemployment crisis in Europe, and the third part deals with policy measures to reduce unemployment. This volume contains a series of papers presented at an international conference held in Zurich, Switzerland in 1993. The contributors cover historical and theoretical aspects as well as policy implications. Herbert Giersch, Ed., For The Egon-sohmen-foundation. Contains The Papers Discussed At A Symposium ... Held In Vancouver, Canada--pref. Includes Bibliographical References.