After the Rain : how the West lost the EastVaknin, Samuel
History
After the Rain : how the West lost the East
Vaknin, Samuel
Europe, Eastern -- Economic conditions -- 1989-; Europe, Eastern -- Politics and government -- 1989-
Aid economies - Economies that derive most of their vitality from aid
granted them by donor countries, multilateral aid agencies and NGOs.
Many of the economies in transition belong to this class. Up to 15% of
their GDP is in the form of handouts, soft loans and technical
assistance. Rescheduling is another species of financial subsidy and
virtually all CEE countries have benefited from it. The dependence thus
formed can easily deteriorate into addiction. The economic players in
such economies engage mostly in lobbying and in political manoeuvring -
rather than in production.
Derivative or Satellite economies - These are economies, which are
absolutely dependent upon or very closely correlated with other
economies. This is either because they conduct most of their trade with
these economies, or because they are a (marginal) member of a powerful
regional club (or aspire to become one), or because they are under the
economic (or geopolitical or military) umbrella of a regional power or
a superpower. Another variant is the single-commodity or single-goods
or single-service economies. Many countries in Africa and many members
of the OPEC oil cartel rely on a single product for their livelihood.
Russia, for instance, is heavily dependent on proceeds from the sale of
its energy products. Most Montenegrins derive their livelihood,
directly or indirectly, from smuggling, bootlegging and illegal
immigration. Drugs are a major "export" earner in Macedonia and Albania.
Copycat economies - These are economies that are based on legal or
(more often) illegal copying and emulation of intellectual property:
patents, brand names, designs, industrial processes, other forms of
innovation, copyrighted material, etc. The prime example is Japan,
which constructed its whole mega-economy on these bases. Both Bulgaria
and Russia are Meccas of piracy. Though prosperous for a time, these
economies are dependent on and subject to the vicissitudes of business
cycles. They are capital sensitive, inherently unstable and with no
real long term prospects if they fail to generate their own
intellectual property. They reflect the volatility of the markets for
their goods and are overly exposed to trade risks, international
legislation and imports. Usually, they specialize in narrow segments of
manufacturing which only increases the precariousness of their
situation.
The Predator Economies can also be classified:
Public-domain text, read in full here on John Shaqi.
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