5) Problem number 2: Europe must come to terms with the 'new' social problems arising from the contradictions of the process of the global environmental destruction, to which Europe as one of the main regions of world industry and traffic, disproportionately contributes, and Europe must find a proper way for gender empowerment

The amplification of the discourse of development theory, that still tends to be sometimes fixed towards such monetary dimensions as growth and distribution alone, might be somewhat surprising. Over recent years, there has emerged a new sub-field of development and transformation theory, that is sensitive to the concerns of 'the new social movements' around the globe (Bello, 1989; Friberg, 1988; UNDP, 1993, 1994; Woehlke, 1987, 1993). The situation of women and the situation of the environment emerge as one of the prime issues of development (Benard and Schlaffer, 1985; Betz and Bruene, 1995; L. R. Brown, 1992; Dubiel, 1993; Frank and Fuentes-Frank, 1990; Leggett, 1991; Saffioti, 1978; Seager and Olson, 1986). Cross-national analysis about economic and social preconditions and the quality of the environment are relatively new (Beckerman, 1992; Shafik and Bandyopadhyay, 1992).

It is hard to construct a single indicator of the environmental situation of a country. The following indicators are being used widely: the greenhouse index per 10 million people, energy consumption per capita, and the annual rate of deforestation. A fourth indicator, per capita carbon dioxide emissions, is also available. The greenhouse index measures the net emissions of three major greenhouse gases: carbon dioxide, methane and chlorofluorocarbons. The index weights each gas according to its heattrapping quality in carbon dioxide equivalents and expresses them in metric tonnes of carbon per capita. Energy consumption, on the other hand, refers to commercial forms of primary energy - petroleum (crude oil, natural gas liquids, and oil from non-conventional sources), natural gas, solid fuels (coal, lignite, and other derived fuels), and primary electricity (nuclear, hydroelectric, geothermal, and other) - all converted into oil equivalents. Energy consumption refers to domestic primary energy supply before transformation to other end-use fuels and is calculated as indigenous production plus imports and stock changes, minus exports and international marine bunkers. The use of firewood, dried animal excrement, and other traditional fuels, is not taken into account for lack of international comparative data. Energy consumption per capita can be considered as perhaps the most important single indicator of the factors, that lead to global environmental degradation. The two environmental indicators have a very high positive correlation with each other. The third indicator, annual rate of deforestation or total forest area (under proper consideration of arable land per total land), is connected with the first and the second process in a complex fashion. For the future of the world environment, deforestation is the most alarming contemporary process of environmental degradation. Forest burning directly leads to a greatly increased CO2 emission; deforestation reduces the world's future capacity to produce oxygen and to adapt to increasing CO2 levels. To put it into a drastic comparison with medicine: the patient suffers from cancer on the left lung (the green house-effect), and the doctors decide to extract the still functioning right lung (the world-wide CO2 --> O2 photosynthetic regenerative capacity of the world's tropical forests). Due to the destruction of the outer ozone-layer of the earth, this fatal process will still be increased. Each second, a rainforest area as large as a football field, is being demolished on purpose (Launer, 1992).

Among the factors, leading to deforestation, the export-oriented economy, the use of tropical wood in the world paper and furniture industry, and the burning of wood for cooking and heating purposes are the three most commonly mentioned factors. A great number of scholars, among them Leggett et al., 1991, tried to bring deforestation rates systematically into a causal relationship with the kind of dependent capitalist development, analysed amongst others by Bornschier and Chase Dunn, 1985. The creation of large plantations in Latin America for meat exports to the United States of America is often causally linked in the literature to the problem of deforestation (Launer, 1992). Brazil's supposed role is of special importance here, because Brazil still has a share of 27.5% of the world's tropical forests. Indonesia's year-long wood-export drive has often been mentioned as the most paradigmatic case of the influence of the capitalist world economy on the rapid disappearance of the world's forests. The role of the peasantry in dependent capitalism was also often mentioned in this context. Extensive tropical agriculture, implanted by 500 years of dependent development, described by the Peruvian Marxist José Carlos Mariateguí in his classic '7 Essays', and later on analysed by Feder, 1972, is thought to be one of the main factors leading to the alarming rates of deforestation. Small scale peasants - the dependencia argument runs - are evicted throughout the countries of Latin America, Africa, Asia and the Pacific from their meagre holdings by the land-hungry process of dependent agricultural capitalism for the sake of export-oriented breeding for meat production and tropical export crops. But what is already commonplace in the former 'Third World' could become a rule of the day also in the former 'Second World'. Forests are being cut down not only in Indonesia and in Northern Borneo at an amazing speed, but also in the Warmia region of the Mazurian lakes in Poland and in other parts of Eastern Europe. Forest cutting for export purposes, disregarding the social and ecological rights of the local populations, could serve, a dependencia-minded argument could maintain, the short-term profit interests of the old and new export-oriented elites. In the former or continuously communist countries of Eastern Europe and the USSR-successor-states, environmental quality poses indeed one of the main concerns of development planning nowadays (World Resources Institute, 1992). Eastern Europe's transformation could be again seen as a testing ground for various development paradigms and strategies. The globalisation argument would emphasise, that, contrary to the optimistic expectations about an improvement in the environmental situation due to the new presence of transnational capital, the adoption of an energy-consuming 'US-style'- model would mean a significant long-term increase of various emissions. The global atmospheric carbon dioxide concentration increased from 280 ppm in pre-industrial times to 315.8 in 1959, to stand at 354 in 1990. World carbon dioxide emissions increased from 6002 millions of metric tons in 1950 to 21863 millions of metric tons in 1989. Over the last 100 years, the earth's temperature rose by 0.6 degrees; from 1970 to today, the rise was 0.3 degrees. The earth's temperature will rise by a further 3 degrees until 2100, if contemporary emission trends continue (Stiftung, 1996). Over the last 160000 years, there has been a close correlation between carbon-dioxide concentrations and changes in the world temperature (Gore, 1994; Leggett, 1991). Roughly, a change of +- 100 ppm carbon dioxide historically led to a change of +- 12.5 degrees Celsius. From 1750 to today, carbon dioxide emissions amount to 800 thousand million tons of CO2.. Although the temperature change factor might be smaller, and a rise by 100 ppm CO2. might lead to a temperature rise of 1.1 degrees, the heating of the atmosphere in the coming decades will be enormous:

Graph 5.1 Charles D. Keeling's data series from Mauna Loa - atmospheric concentrations of greenhouse and ozone-depleting gases, 1959-90, and the trend for the next 60 years

our own calculations from Keeling's data, World Resources Institute, 1992, using the trend-line extrapolation of the EXCEL 5.0 programme (3-order polynomial expression)

Desertification, storms, flooding in many parts of the world during the winter seasons, as well as famine and droughts during the summer months could be the results of these recent increases in carbon dioxide levels and are indeed already a reality in many parts of the world. There were 16 major disasters in the 1960s, 29 in the 1970s, and 70 in the 1980s. Since 1967, 1.3 million people died from droughts, 800000 in cyclones, 600000 in earth quakes and 300000 in floods (UNDP, 1994). The last time, that a carbon dioxide concentration as high as around 300 ppm was reached in the earth's history was around 130000 before our time; from that moment onwards, global temperatures and carbon dioxide concentration ratios fell to 20000 before our time, when a level of just 180 ppm was reached.

World pollution is even a clear statistical function of the ups and downs of the longer swings in the world economy, most notably the Kuznets cycle and the Kondratieff cycle. The World Resources Institute has provided information on the basis of the Carbon Dioxide Information Analysis Centre about CO2 emissions in the world from 1950 onwards. The growth rates of CO2 consumption clearly correspond to the Kondratieff and Kuznets cycle analysis about economic growth, which we introduced in Chapter 3.

Graph 5.2: CO2 emissions and their growth rates from 1950 onwards


Legend: World CO2 emissions from fossil fuel consumption and cement manufacture, 1950-89. Left hand scale: emissions in millions of metric tons per year; right-hand scale: growth rates. The graph shows also the polynomial expression (6th order) of the growth rates, as calculated by EXCEL 5.0, as well as the gliding averages on a 9-year basis. The dark line is the linear regression trend of CO2 emissions, projected for 5 consecutive periods

It is clear, however, that some Western countries on the other hand use technical and civilisational standards that indeed constitute a significant improvement in terms of the environment compared to the preceding regime. Table 5.1 now summarises the most important environmental indicators for the region before or during the start of the transformation process by international comparison:

Table 5.1: environmental quality in Eastern Europe and the former USSR in comparison to the US, the UK, France, (West) Germany, Sweden and Austria

Country Environmental degradation indicator

CO2 SO2 NOX % forest defoliation

per capita emissions (tons) (moderate to severe)

(in industry)

Albania 3.04 15.6 2.8 -

Bulgaria 11.87 114.6 16.7 24.9%

former CS 14.47 178.9 60.7 33.0%

East Germany - 313.3 42.6 16.4%

Hungary 6.05 115.2 24.5 12.7%

Poland 11.54 103.3 39.1 31.9%

Romania 9.16 8.6 16.8 -

former Yug. 5.61 69.6 8.0 22.6% (Slovenia)

former USSR - 32.4 14.6 35.0% (Kalinin-

grad oblast)

USA 19.68 83.2 79.6 -

UK 9.89 62.1 43.9 28.0%

France 6.38 27.1 30.1 -

W-Germany 10.48 24.2 48.4 15.9%

Sweden 7.0 25.9 35.4 12.9%

Austria 6.82 16.3 27.7 4.4%

Source: our own compilations from World Resources Institute, 1992

Deforestation in Eastern Europe and the former USSR is already more severe than in most parts of Western Europe. What will happen to these forests in the course of world-market oriented development? To this we must add, that in a country like Poland environmental concerns do not receive the priority that they should receive. Only 34% of the population is served by waste water treatment plants (EU average 70%); municipal waste services reach only 55% of the population (EU average: 96%; our own compilations from UNDP, 1995). The basic argument of a globalisation-oriented explanation of environmental quality on a world scale (Launer, 1992; Woehlke, 1987) would run as follows: dependent development not only leads to social strains and imbalances, with all it's economic dynamics that it might initiate at the same time; it also means a further strain on the natural resources and the environment by the energy-, space-, forest- and individual-traffic intensive life-style that the world-wide market economy, especially in it's North American variety, brings about. Although some forest-, energy- and emission-saving might be the initial consequence of the introduction of more modern and western technologies, the basic problem of dependent and polarising development would remain on the agenda. Profit-oriented development between unequal partners will always, globalisation theory argues, lead to forms of 'unequal exchange'. Concretely, the world-wide market economy and the new international division of labour will (i) transfer energy and pollution intensive industries to the countries of the periphery and the semi-periphery (ii) industrial waste from the centres will be increasingly attempted to be deposited in those regions (iii) export-intensive industrialisation and the debt crisis will mean an almost reckless use of remaining natural resources, especially forest areas, for export purposes to earn badly needed foreign cash, or to destroy forests to gain land for tropical and sub-tropical export agriculture. International tourism (including it's 'soft-body'-component), air traffic, individual traffic and the 'western' lifestyle, that begins with the plastic bag, ranging over well-known soft drinks - preferably from the tin-can - to equally well-known western TV-serials, will in the end more than negatively compensate the initially positive contributions, that economic transformation, market mechanisms and the recession of the 1980s will have meant for the countries of the periphery and the semi-periphery of Eastern Europe and the countries of the South in terms of the environment. Poland produces today more waste per inhabitant already (1500 kg per year) than Spain, Italy, France, the UK or Germany (1021 kg) (Wprost, 20.09. 1995: 52; Tausch/de Boer, 1997). Poland might have new factories for paper recycling with western technology, but the raw material - old paper - is being imported from Western countries.

In addition, regional development authorities throughout Eastern Europe and in other semi-peripheral regions will hope to attract foreign buying power in exchange for local property rights in environmentally still undamaged regions. Insert here what you like: Caribbean island coasts, still untouched regions in Eastern Europe, like the Mazurian lakes, the Tatra mountains, et cetera. They will share the fate - dependency theory would tell us - of the sell-out at the Spanish Mediterranean coast, wide areas of the Austrian Alps and many other places in Europe. In other zones, unabated deforestation will develop, not unlike many Third-World countries. Unequal environmental exchange will increasingly affect (semi)peripheral regions in greater geographical distance from the centres; mass tourism to the tropical zones of the world will cause a tremendous increase in air-pollution from air-traffic that these 'island get-aways' bring about. For these reasons, environmental indicators are so negatively determined by transnational penetration. An important control variable in our analysis of the deforestation process is the percentage of total land, devoted to agriculture. At the one hand, it allows for the fact, that large regions of the world are affected by a growing desertification; on the other hand, this control variable duly considers the negative effect, that the expansion of world agriculture had on the world's woodlands in a historic perspective.

Europe must not only come to terms with the environmental destruction, to which it contributes disproportionately on a global scale, Europe must also lead the way in bringing about a lean and socially just state at the same time. Social justice, by and large, means gender justice today (UNDP, 1995). The eastward expansion of the Union will further increase this problem dimension.

Faced by the marginalisation of women on the labour markets due to the workings of globalisation, Europe is tempted to spend its way out to maintain their position in a global context. The eastward expansion of the Union will mean, that millions of up to now economically marginalised women will become citizens of the Union, whose fate has to be taken care of by Brussels at least in some way.

Aggregate societal data suggest that after the transformation, the situation of women in Eastern and Central Europe did relatively deteriorate in many ways (Cornia, 1993, 1994). Since Cornia's very telling research results are easily available internationally, it might suffice here to quote some aggregate UNDP data to further illustrate our point. Our aggregate data show, how difficult a relatively rapid integration of the more traditionalist, rural and in many ways backward East into the European Union could become. Only the Czech Republic is socially by any means on a comparable level with the more highly developed countries of Western Europe:

Table 5.2: the marginalisation of women, social devastation and decay in former communist countries of Central and Eastern Europe in comparison to the European Union countries

Indicator CS H BUL PL ROM ALB EU

maternal mortality

per 100000 live births 14 21 40 15 210 100 9

sulphur and nitrogen

emissions per capita 239 141 - 141 - - 74

Rapes per 100000

women 12 31 21 19 - - 17

homicides by men

per 100000 1.3 3.5 4.0 2.5 1.6

prisoners per

100000 inhabitants - 142 160 204 - - 59

suicides by men per

100000 30 58 23 24 13 - 19

total health expen-

diture as % of GDP 5.9 6.0 5.4 5.1 3.9 - 8.2

mean years of schooling

female population >25y. 8.6 9.9 6.4 7.8 6.7 5.2 9.9

mean years of schooling

male population >25y. 9.8 9.7 7.6 8.5 7.5 7.2 10.3

tertiary graduates as

% of population of nor-

mal graduate age 11.8 6.4 6.4 6.6 2.2 1.7 12.6

average age of women

at first marriage 22.2 22.4 21.1 22.8 21.1 20.4 25.1

% of seats in parlia-

ment occupied by

women 9% 7% 13% 9% 3% 6% 13%

human development index

rank on the world scale 27. 31. 48. 49. 72. 76. -

_____________________________________________________________

Source: our own compilations from UNDP (HDR, 1994). The world rankings of the EU countries on the human development index are:

Sweden 4.

France 6.

NL 9.

UK 10.

Germany 11.

Austria 12.

Belgium 13.

DK 15.

SF 16.

LUX 17.

IRE 21.

Italy 22.

Spain 23.

Greece 25.

Portugal 42.

Gender empowerment, as it is known, combines parliamentary seats, held by women, the share of women in the total number of administrators and managers in a country, the share of women in the professional and technical workforce, and the share of women in earned income (UNDP, 1996). Table 5.3 shows the performance of the transformation countries in comparison to Western democracies:

Table 5.3: gender empowerment

CND 0.685

USA 0.645

Japan 0.445

NL 0.646

NOR 0.786

SF 0.710

France 0.437

SW 0.779

Spain 0.490

Australia 0.590

BLG 0.580

Austria 0.641

NZ 0.685

CH 0.594

UK 0.530

DK 0.718

GER 0.654

IRE 0.504

ITA 0.593

GRE 0.370

ISR 0.485

HUN 0.507

POL 0.431

BUL 0.486

Source: our own compilations from UNDP, 1996

Eastern Europe, finding itself at the absolute lower middle range of the continuum between backward and 'modern' societies, characterised by the values of education as an end in itself, self-realisation outside traditional role patterns, associated with child-bearing and the family, control of male aggressive behaviour and a developed social welfare system, socially belongs much more to the countries, still (semi-)characterized by traditional role patterns. In the industrialized world, countries as different as Japan, France, Israel and Greece also have a gender empowerment index lower than 0.500. They all have in common a certain secondary role of women in public life, as compared to the real world leaders in terms of emancipation, like the protestant democracies in Scandinavia, the Netherlands and Canada. The unquestionable advances in the relative role of women, that were evident throughout the region before the year 1989, came to a grinding halt after the transformation. With the background of the general poverty levels, sketched above, the socially disruptive dimension of this conflict becomes evident.

For the political economy of the world system, interesting research questions arise out of such tendencies. Does the market economy, especially in it's dependent variety, in the end really marginalise women furthermore, or does the (re)advent of full-fledged capitalism bring about a marked improvement in the social situation of women? There emerge very interesting results on the situation of women from our empirical investigations in Table 4.1.

Three measures are used to further test the relationship between globalisation and gender-related human development. One is maternal mortality, the second is the new UNDP gender-related development index, the third is the gender empowerment measure. The first and the third index are more distribution-oriented than the second indicator. Each year, 290 women per 100000 live births lose their lives in the moment of giving birth. What is the ultimate moment of happiness in a life for woman and man, to experience in togetherness the advent of a newly-born life, becomes the ultimate pain for millions of mothers around the world. They lose their lives due to the structural violence existing in the world system, they lose their lives in their ultimate moment of loneliness while giving birth, desolated and marginalised by a social order on the global level that produces more and more commodities, services and pollution but that forgets about the poor backyards, shanty towns and desolate clinics in the world poverty belts. In the industrialised countries of the OECD, maternal mortality is 11 per 100000. That is to say, at the global level there is an 'excess mortality' of 279 women per 100000 live births, considering the progress in medicine reached at the level of the western democracies. In Eastern Europe, maternal mortality already reaches 66 per 100000 live births, and in the developing countries, 420. All three indicators of the female situation de la vie are being significantly blocked by MNC penetration (see Table 4.1).

Our results indicate that dependency is by far the most important determinant of maternal mortality, and that the two dependency-related indicators: terms of trade and trade dependency co-determine the process of maternal mortality in the world system. Our results also indicate that gender empowerment and gender development are significantly and negatively influenced by MNC penetration.

6) Problem number 3: Europe must come to terms with the contradictions of world cultures and world cultural conflict, global anarchy and global decay

Nationalism will continue to receive from the contradictions of globalisation. One theory (Huntington) holds, that cultural dividing lines increasingly achieve relevance; and even could threaten to endanger the transformation project to build up a stable, market oriented western democracy on the ruins of communism. To those, accustomed to the dialogue about international politics as a 'dismal science' it will be no surprise to learn about recent international research results regarding genocide and mass murder in this century (Rummel, 1994, 1995). 218 repressive regimes (141 state regimes and 77 quasi-state and group regimes) from 1900 to 1987 have killed nearly 170 million of their own citizens and foreigners - about four times the number of people killed in domestic and international wars during that same period. Power kills; democracy is the general method of non-violence, says Rummel: but what happens, if democracy and non-violence are seriously undermined by ethno-political conflict? After the horrors of the Holocaust and the Second World War, the following victimisation of mostly civilians stand out in contemporary history:

Graph 6.1: War victims and victims of mass murder after 1945


Source: our own compilations from Stiftung Entwicklung und Frieden, 1996, based on Rummel, 1994 and other sources, quoted there

Who will be the groups that most violently are going to challenge the logic of accumulation on a global scale? Does capitalist globalisation, that process of unequal and uneven development, in the end cause the cultural conflicts in the world system, as globalisation theories would maintain (Axtmann, 1995)? A research effort at global, cross-national analysis of social integration and disintegration did not lead very far, perhaps because the research design was centred around too many variables and the number of countries included in the analysis makes the research findings very dependent on outlying cases (Klitgaard and Fedderke, 1995). But what emerged at least was that there are different types of social disintegration in the world system, and that - as the authors contend - stagnation is more detrimental than growth to the issue of social stability. This hypothesis might be contested in the light of new research results; but at any rate, that recent essay opens the way for the debate of these issues anew.

Ethno-nationalistic conflicts, terrorism and war were to break out along the real 'earthquake line' in today's international system, the great dividing line between the cultures. That is at least what Samuel Huntington, Harvard professor of political science and for many years one the closest advisers of successive United States governments on matters of international security and military policy, has maintained in his recent contributions. Huntington tries to offer a socio-cultural explanation to the question, where Europe's frontier will be finally drawn. Are there clear empirically observable tendencies in development performance according to the classification, suggested by Huntington, of the basic underlying socio-cultural patterns of a given country?

Professor Huntington's thesis is not at all abstract and has - however we view it - a vital importance for the future of the European Union. From Marseilles to Algier, from Madrid to Rabat, from Rome to Tunis or Sofia, from Athens to Bucharest or Cairo, from Vienna to Kiev or Ankara or Teheran geographical distances are smaller or about equal as the distances from these European Union cities to the Canary Islands, the Irish Republic, northern Scotland or northern Scandinavia or other remoter parts of the already existing Union. The migration pressures from Eastern Europe and the population explosion on the southern rim of the Mediterranean and beyond has not yet been fully grasped to be a real problem. By the year 2025, that is to say, in only 30 years, the population balance on the southern rim of Europe will have dramatically shifted. The southern border of Europe already is and will even more so become a border between relatively wealthy developed societies and societies, that are threatened by overpopulation, scarcity of resources, and poverty. By the year 2000, 290 million people will live in the 19 countries of the Arab world alone. Today, less than three-fifths of the rural population have access to safe water, 80 million people are illiterate, 50 million of them females, 10 million people are underfed, 73 million Arabs live below the line of absolute poverty. Average life expectancy is still 61.9 years, 40 million people have no access to health services, while 50.4 thousand million $ were spent on armaments. Arms imports in the Arab world amounted to 3.5 thousand million $ in 1992 alone (our own compilation from UNDP, 1995).

The still existing high concentration of development problems and population dynamics in the immediate vicinity of Europe over the next 30 years will dramatically change the shape of international politics, economics and migratory pressures in the region. A dependency-oriented explanation of underdevelopment would hold, that the 'Huntington factor' is in reality disappearing, whenever we control for MNC penetration. The main result of our investigation will be that the Huntington factor only plays a certain role when we do not control for the amount of MNC penetration; however, if we do consider MNC penetration properly, the effects become weaker or are even the reverse.

The( in)validity of Huntington's culture conflict approach on a world level

However forceful Huntington's theory might seem to be at first sight, we can consider it to be falsified by our investigations. While Lipset and Weede seem to be inclined to regard Confucianism as a growth precondition, Huntington's theory is more pessimistic and foresees a joint rising world cultural challenge against the dominant centres by Islam and Orthodoxy. The important element in the test of Huntington's theory seems to be the joint interaction of societies, classified under his index. The Huntington-Index might be thus the mere reflection of this underlying geographical and world economic peripherisation, that jointly affects the Orthodox and the Islamic world. This joint peripherisation would cast a large shadow on the prospects for market-economic reform in Russia, Romania, Bulgaria, and the 'Federal Republic of Yugoslavia'.

Enough of ideologies. Let the hard facts speak. Substituting 'UN membership years' by the Huntington-index of the clash of civilisations (Huntington-Index countries = 1, other countries = 0), we get the following results on the level of world society from our Table 4.1:

Table 6.1: the influence of Huntington's index on development performance at the level of world society

MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate Constant
adjustment -0,761 -1,4910,125 -3,538 0,048 -0,058 0,830,133 0,01 -0,024-0,004 21,47
0,188 1,029 0,3495,208 0,029 0,04 0,8060,06 0,007 0,0220,002 19,93
0,301 2,649
4,341 111
335,1 779,1
t-Test -4,035 -1,449 0,359-0,679 1,684 -1,46 1,032,193 1,353 -1,08-1,989
MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF social sec ln PCI^2 ln(MPR+1) Fertility Rate Constant
growth -0,944 -0,6250,167 -4,228 0,021 -0,084 0,2090,138 0,015 -0,038-0,003 26,73
0,165 0,90,305 4,558 0,025 0,035 0,7060,053 0,007 0,020,002 17,45
0,409 2,319
6,997 111
413,8 596,8
t-Test -5,723 -0,694 0,546-0,928 0,844 -2,426 0,296 2,616 2,311-1,956 -1,645
LEX 1960 1 der e-funct 1 der pi-func MNC PEN73 Viol Civ Rits Trade Dep Terms Trade Huntington-I Women Parl Women %LF ln(MPR+1) Constant
DYN 0,811 -0,025-0,038 0,984 0,0130,001 -0,049 2E-04 -0,706 -29,49-0,299 26,79
LEX 0,885 0,0240,031 0,708 0,0170,006 0,173 0,002 0,742 6,9610,037 2,724
0,737 2,257
28,23 111
1582 565,3
t-Test 0,916 -1,054-1,216 1,391 0,793 0,238-0,282 0,147 -0,952 -4,237 -7,993
pol rights MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate Constant
violations 0,536 1,0450,079 -1,473 0,02 0,06 1,002-0,103 0,004 0,0095E-04 5,987
0,108 0,588 0,1992,976 0,016 0,023 0,4610,035 0,004 0,0130,001 11,39
0,576 1,514
13,68 111
344,9 254,4
t-Test 4,973 1,778 0,399 -0,4951,193 2,663 2,175 -2,992 0,9390,713 0,453
MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate Constant
civil rights 0,354 1,21-0,015 -0,074 0,002 0,037 0,571-0,087 8E-04 -0,011-9E-04 3,205
violations 0,086 0,4680,159 2,372 0,013 0,018 0,3670,028 0,003 0,018E-04 9,077
0,586 1,206
14,28 111
228,7 161,5
4,121 2,582 -0,093 -0,0310,177 2,027 1,554 -3,15 0,244-1,115 -1,041
HDI MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate Constant
-0,095 0,173 0,0060,02 -5E-04 -0,003 -0,033 7E-04-2E-04 7E-04 6E-050,488
0,008 0,043 0,0150,217 0,001 0,002 0,034 0,0033E-04 9E-04 8E-050,832
0,871 0,111
67,9 111
9,137 1,358
-12,04 4,018 0,392 0,092-0,38 -1,72 -0,986 0,26-0,598 0,736 0,808
MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate Constant
-0,071 0,101 -0,0060,16 6E-04 -0,002 -0,0320,002 -1E-04 4E-048E-05 0,026
0,006 0,031 0,0110,159 9E-04 0,001 0,0250,002 2E-04 7E-046E-05 0,608
0,873 0,081
69,29 111
4,971 0,724
Gender Development Index
-12,38 3,232 -0,609 1,0080,692 -2,021 -1,311 1,096-0,58 0,568 1,401
MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate Constant
-0,02 0,016 0,015-0,184 0,001 0,005 -0,0180,003 -2E-04 -6E-054E-05 0,866
0,004 0,023 0,0080,114 6E-04 9E-04 0,0180,001 2E-04 5E-044E-05 0,437
0,818 0,058
45,46 111
1,691 0,375
Gender Empowerment Index
MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate
-4,882 0,72,019 -1,606 1,868 6,039 -1,006 1,946-0,958 -0,117 1,015
MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate %agland Constant
%forest -0,391 -1,834-5,294 -2,078 28,24 0,334 0,689-10,99 -0,366 -0,0820,107 0,008 -63,58
area 0,128 1,4087,606 2,559 38,26 0,211 0,2935,918 0,46 0,0550,164 0,014 146,8
0,313 19,45
4,173 110
18940 41610
t-Test -3,043 -1,303 -0,696-0,812 0,738 1,584 2,353 -1,856-0,797 -1,495 0,6540,564
MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate %agland Constant
annual 0,015 0,091-0,646 -0,22 3,273 0,008 0,0010,278 -0,054 0,003-0,004 3E-04 -11,53
deforest 0,006 0,070,377 0,127 1,898 0,01 0,0150,294 0,023 0,0030,008 7E-04 7,281
0,336 0,965
4,643 110
51,87 102,4
t-Test 2,324 1,306 -1,712 -1,732 1,724 0,748 0,0990,946 -2,367 1,181-0,511 0,511
MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate %agland Constant
ethno 0,009 0,0980,218 -0,059 0,91 0,016 0,0320,511 -0,032 -0,002-0,02 -0,001 -3,323
warfare 0,011 0,1180,638 0,215 3,207 0,018 0,0250,496 0,039 0,0050,014 0,001 12,3
0,109 1,63
1,116 110
35,59 292,4
t-Test 0,816 0,830,342 -0,275 0,284 0,884 1,2921,031 -0,823 -0,391-1,444 -0,985
MNC PEN73 Govex Trade Dep social sec Huntington-I Women Parl Women %LF ln PCI ln PCI^2ln(MPR+1) Fertility Rate %agland Constant
destab./ 0,002 0,0290,073 -0,033 0,535 -6E-04 -0,002-0,048 -0,008 -0,001-2E-04 -4E-04 -1,938
war 0,003 0,0280,153 0,052 0,771 0,004 0,0060,119 0,009 0,0010,003 3E-04 2,959
0,095 0,392
0,965 110
1,78 16,92
t-Test 0,885 1,02 0,477 -0,6330,693 -0,151 -0,28 -0,399-0,883 -1,078 -0,049-1,55

Legend: our own calculations with EXCEL 4.0 and 5.0

The Huntington Index, under control for MNC penetration, is even significantly and positively related to adjustment and gender empowerment; and the only negative significant effect is the influence on deforestation. Traditional forms of globalisation are responsible for the process of stagnation in the world periphery and semi-periphery. In the countries falling under the Huntington-index, environmental concerns should achieve greater attention in the future.

The return of dictatorship? Towards understanding the process of ethno-political conflict and the world-wide refugee problem

In 1989 we heard the prophecy of the 'end of history'. Instead of talking about the end of history, we might be faced with the acceleration of history. Deadly ethno-political conflicts continue to beset the world. In the international system, wars are of course not new; 16 of all the 21 wars with more than a million deaths in history happened during the 20th century. From 1945 to 1992 more than 25 million people died in wars or as a direct consequence of wars (Stiftung Entwicklung und Frieden, 1993). Civilians have to pay an ever larger price for these wars; the tendency has been rising steadily and in 1990, already 90% of all war victims were civilians. The number of international refugees according to the most narrow definitions increased world-wide from 7.8 million in 1982 to 16.6 million according to the strictest criteria in 1991. To these numbers, one would have to add 3.4 million refugee-like situations of people in foreign countries and 23.5 million internal refugees. All together, there were at least 43 million refugees classified according to various categories around the world in 1991 (op. cit.: 184-185). But estimates of the real number of refugees reach as high as 500 million on a global scale (Datta, 1993). The 'official' data show furthermore, that according to UNHCR criteria, the number of refugees world-wide increased from 16.6 to 24 million people (Stiftung Entwicklung und Frieden, 1996).

Ethno-political conflicts are among the most vicious forms of international and domestic conflicts. Over 40% of the states of the world have more than 5 major ethnic groups within their borders, with at least one of them facing permanent discrimination (UNDP, 1994). There were 10 major ethnic conflicts in Europe, 6 in the Middle East, 28 in Asia, 23 in Africa, 3 in Latin America during the period 1993-94 (Gurr, 1994). These 50 lethal conflicts produced almost 4 million deaths and displaced 26.8 million people as refugees (Gurr, 1994: 351). It would be wrong, though, to assume that there are necessarily centrifugal tendencies in the international system as such that will still further extend these types of conflicts like bush-fires. Rather, Gurr in his far-reaching empirical work proposes to start from the hypothesis, that the collapse of the communist bloc is only partly to blame for the increase in ethno-political violence, since 54% of all ethno-political conflicts were started before 1987. Since the 1990s, already existing conflicts have tended to intensify, but the spreading of conflicts, Gurr argues, could be avoided. Contention for power, struggle for indigenous rights and ethno-nationalism were the main causes of these conflicts. Huntington's recent thesis about the clash of civilisations receives a considerable qualification from Gurr's empirical work: only 4 of the ethno-political conflicts correspond to the traditional left-right ideological struggle; while 18 are motivated by civilisational struggles (Gurr, 1994: 357). Although ethno-political conflict intensified after the end of the Soviet Union, it would be wrong to blame the first process on the second. The disintegration of the Soviet Union only increased an already existing tendency in world society. Power shifts, the emergence of new states, and revolutions still play an important role in the determination of conflict. But, according to Gurr, it would be wrong to assume, that the fragmentation tendency of the world system were to continue indefinitely. Rather, the most likely scenario will be an increase in communal contention about access to power in the weak and heterogeneous states in Africa. Secessionist conflicts outside Africa and the former communist bloc even declined in intensity over recent years (Gurr, 1994: 364).

Macroquantitative evidence on these processes is very difficult to construct and collect, as long as data collection and data reporting is so deficient in many of the new states of the East and continues to be so in the South as well. Thus, our model can be called only a preliminary test of the Deutsch/Huntington approach to ethno-political conflict and had to start with a few available data series that render themselves at least partially to the testing of the general patterns of the new realities of ethno-political conflict around the world. Our predictors included indicators of dependency (aggregate net transfers, that is to say, inflows that are greater than outflows due to international exploitation), of the liberal approach to development (political and human rights violations versus respect), and of the social-policy approach (mean years of schooling, adult literacy rate, human development index, the fertility rate and its change as an indicator of the process of demographic change). The Deutsch/Huntington school however regards alphabetisation as an indicator of social mobilisation, and hence as a threat to stability.

Our following analysis shows, that the threat to democracy in the semi-periphery and the periphery continues. Superficially, it seems to be, that similar conditions at different times produce similar theories and empirical results: during the emergence of the many new states in the 'Third World' in the early 1960s, more pessimistic versions of modernisation theory gained ground. With the contemporary problems of democracy in the former 'Second World', the stability question of the new recently emerged or liberated states cannot be separated from such modernisation theory dimensions anymore. In the model, that we propose, the chain of causation, underlying the empirical trends, is related to, but not completely patterned according to modernisation theories. For Huntington, instability always was determined by social mobilisation (SM), which works in the direction of instability (IST). This is at least the consistent interpretation, that Weede (1985) has proposed, and which we follow here.

Deutsch was even more radical than Huntington in expressing the idea that development is a threat to stability. His clearly formulated mathematical formula for political stability expects a positive trade-off between government sector size, income concentration and stability on the one hand and a negative trade-off between social mobilisation, level of development and stability on the other hand (Deutsch, 1960/66).

The tragedy in former Yugoslavia could be regarded in many ways as a paradigmatic case, to be explained at least in part by Deutsch's theory. The Deutsch/Huntington school would believe that, however legitimate the issue of transformation from the communist political and economic system in that country might have been, the strategy to cling to communist regional power while opening up the country to the world market was the real and final reason for the break-out of the conflict. In fact, Yugoslavia in the 1980s held many world or at least European records in economic and social policy, that seem to be forgotten more and more in the futile debate about early international recognition of Slovenia, Croatia and Bosnia as the alleged main cause for the subsequent tragedy. At first inspection, Yugoslavia should have become a real miracle of neo-liberal economic transformation in the 1980s after the ethno-heterogeneous state class model of the 1970s came to a grinding halt. Malicious social scientists might dig out some day these old journal and book contributions, praising the old leadership for what it had achieved in the name of the market, the international financial institutions, and in the name of economic theory. Amen. We refrain from that: errare humanum est. Yugoslavia attempted the most-far-reaching neo-liberal transformation strategy in the region; and for that reason alone its experience should be carefully studied elsewhere: (i) Yugoslavia had the most rapid urbanisation rate of all European countries from 1960 to 1990 (3.2% per annum). In fact, urban population doubled from 28% to 56% in just thirty years. This enormous potential and challenge of social mobilisation was coupled with (ii) a very rapid process of economic transformation and a disappearance of the central state. Yugoslavia recorded the highest rate of gross domestic investment of all countries of the world with complete World Bank WDR data for 1988 and also the highest gross domestic savings rate for the same year. With a savings rate of 2/5 of the national income, Yugoslavia should have been well underway towards self-sustained growth. At the same time, however, the central government in Belgrade reduced in accordance with many international advisors and in a very radical fashion (iii) its role in national economic affairs to almost non-existence. Yugoslavia again holds a world record here, this time for having trimmed down the size of the national total government expenditure as percentage of GNP from 1972 - from 21.1% to 7.5% in 1988. It was the most radical economic transformation from socialism to dependent regional nationalism ever to have been recorded throughout the period of the end of communism in the world; because in no former communist country had there been such a deliberate attempt to reduce the share of the federal government below the 10%-mark. Not even in Pinochet's Chile such a radical cure has been attempted. In both relative and in absolute terms, Yugoslavia was a megaperformer of a kind of regional post-communist IMF-adapted adjustment. The price of the strategy was very clear, but many will shrug their shoulders and ask: so what? The price of the medicine is well-known from many countries now and in a way was also paid in most of the other countries of the region: absolute poverty - according to World Bank World Development Report figures 1990 - increased in the crucial years between 1978 and 1987 from 17% of the population to 25% of the population, and earnings per employee fell by 1.4% annually from 1980 to 1987. Still, household income distribution (iv) was still relatively egalitarian, with the highest 20% controlling just 42.8% of total incomes, and thus not tying the rich closely enough to their political system, so that they would be prepared to fight and die for it, while at the same time impoverishing the poor in absolute terms. All the necessary preconditions for instability, as predicted by Karl Deutsch more than 30 years ago, were present: and to complete the checklist for an absolutely assured crash in the light of Deutsch's nation-building theory, the country had recorded a fairly rapid economic growth rate in the period preceding the stagnation and disaster course of the 1980s; GDP growth stood at 6.0% in the period between 1965 and 1980 and was again in fact the highest economic growth rate in Europe.

The present study on the basis of a sample of 99 countries with complete data on transfers and ethno-political violence includes countries of the periphery and the semi-periphery, and nearly all newly-formed states of the former world of communism. There, the Gurr-Index of ethno-political conflict (EP) is significantly pushed upwards at the one hand by the degree of development of the productive forces. Lamentably enough, adjusted per capita income (PCI) increases, and not decreases ethno-political conflict in world society. This result confirms Deutsch's approach and rejects the still more optimistic vision of the trade-off between stability and development level, expressed by Huntington. The dialectic of the situation is further complicated by the fact, that countries, in order to avoid the stability trap of ethno-political conflict, have to undergo an early demographic and/or social and cultural transition; without that, the tendency towards ethno-political conflict even more increases. High fertility is related to high income concentration, low fertility to low income concentration (Tausch and Prager, 1993). With high fertility rates (FR) - or plausibly, a poorly developed mass communication system -, no reductions in the level of ethno-political conflict can be achieved. Deutsch furthermore believed, that especially in a crisis government sector size increases stability. Huge per capita aggregate net transfers, that is to say, inflows that are greater than outflows, decrease the level of ethno-political strife; while repressive states (REPRESS) are less prone to ethno-political conflict than full scale democracies. Thus stability-oriented 'Keynesianism' in the periphery is today being substituted by the 'Tiananmen formula': repression + capital inflows. There are some elements, that further qualify Deutsch's theory further: social mobilisation (alphabetisation) has no visible effect on instability:

Table 6.2: The determination of the Gurr-Index of ethno-political conflict in the periphery and semi-periphery

Unstandardised regression t-value significant

coefficient at 5%-level

transfers per capita -0.74 -2.06 yes

political rights violations -0.60 -2.65 yes

human development index -0.51 -0.64 no

repressiveness of the security

apparatus +6.22 +0.59 no

population density^0.50 +0.04 +0.02 no

adult literacy rate -0.03 -0.87 no

mean years of schooling +0.02 +0.16 no

ln PCI +0.91 +3.65 yes

ln PCI^2 2.56 +0.25 no

historical fertility rate +0.34 +2.76 yes

failure of demographic

transition -0.00 -1.26 no

________________________________________________________________

n = 99 countries with complete data; R^2 = 32.5%; F = 3.81; 87 degrees of freedom. Legend: 32.5% of ethno-political strife is being determined by our model. n = 99 periphery and semi-periphery countries with complete World Bank data about aggregate net transfers, that is to say, inflows that are greater than the outflows due to international exploitation, and Gurr data about ethno-political strife.

We should go back here once more to our Yugoslav example. Yugoslavia, by all its strenuous efforts to achieve a capitalist transformation, produced little in terms of real foreign capital inflows. Net private direct investments were 0 for the year 1988; while it relied - like Jordan and Egypt - to a heavy degree on the earnings of its labour force abroad. Although fertility rates were reasonably low by overall standards in the 1980s, Yugoslavia still was a relatively traditional society especially in terms of media exposure, thus still weakening the link between 'modernity' and the 'state' on the hand and 'the village' and later on the urban misery on the other hand, precisely at a time, when mass communication would have been necessary to hold society together. Again, Karl Wolfgang Deutsch predicted how important mass communication can become for stabilisation, and how dangerous it is to neglect it. There were only 197 TV-sets per 1000 people in 1988-89; and only a daily newspaper circulation rate of 100 per 1000 people at the end of the old Yugoslavia in 1988-89 was achieved. Thus, only Albania had a lower television density in Europe; and only Spain and Portugal had a worse newspaper circulation on the European continent. Combined, Yugoslavia had the worst media density in Europe. And do not forget, that the combined indices still hide the regional diversities between, say, Slovenia and the rural regions of Bosnia. Thus, traditional forms of communication were much stronger than the mass media, controlled by the party and the state, at a time, when great economic hardships hit the population and the state abandoned its role on the economic stage, thus unable to function politically in the end.

The frightening scenario emerging from this analysis is, that indeed a 'Yugoslavia' could re-appear at least under the following conditions in ethnically heterogeneous former communist countries

(i) a rapid urbanisation process preceding transformation

(ii) coupled with great efforts to redirect economic resources towards economic growth

(iii) under the condition of a neo-liberal programme to abolish large part of the former state economic influence on the economy

(iv) with little real resource flows coming in from the capitalist centres

(v) while at the same time, democracy only partially having been restored and

(vi) modern patterns of social behaviour and/or mass communication, typical for a Western developed democracy, not yet fully developed

To make perhaps matters worse still, Yugoslavia, by not being a member of the European Union, could not send entire families of guest workers abroad for residence; and hundreds of thousands of youngsters - including the fighting generation - were raised by the grandparents instead, who still kept alive the memories of the atrocities of the Second World War and the immediate post-war-periods, both characterised by repression and mass-murder. Yugoslavia again holds a European record - it was the European society with the highest worker remittances from abroad. The guest-worker generation, who in many ways could communicate much better with the other fellow Yugoslav nationalities than their parents, left their children to be raised in the villages, saving for private new homes later being bombarded and burnt systematically to ruins. The children, raised by their grandparents, must have missed their parents, who worked even in such far away countries as Sweden, the Netherlands or Belgium very much, and the children perhaps began to hate them for having them deserted. 'Our son always wept so terribly when we departed after the holidays', an unnamed Yugoslav mother told us once, standing here for hundreds of thousands of Yugoslav parents. But you hardly will hate your own parents, rather, you will project the hatred against others - 'them', the 'opponents', the Albanians, the Bosnian Muslim, the Croats, the Serbs (named alphabetically), et cetera, who stand in the way to fully grasp the fruits of modernisation'. The preconditions for the disaster were thus already present; to make matters worse, the reforms of the regime came too late and never stopped short of steering a middle-course between guided democracy and repression. Thus, condition (vii) for the repetition of the Yugoslav tragedy anywhere else in the region could be a future migration regime of the European Union, that continues to separate migrants from their families and leaves children alone abroad.

This is the answer to the first question of 'country risk' analysis, the causes of instability. The lack of an early demographic transition (FAILURE DEM) and the degree of development (LN PCI) increase, while political rights violations and capital transfers significantly decrease the Gurr-Index of ethno-political conflict on a global level. Other indicators of social or political mobilisation however fail to support other aspects of either Huntington's or Deutsch's theory. It should be noted, that there are insignificant predictors whose direction of influence still cannot be explained by the conservative aspects of the Deutsch/Huntington tradition to explain instability and conflict: the human development index and adult literacy rate, ceteris paribus, even decrease the level of ethno-political conflict, while mean years of schooling slightly increase the level of ethno-political conflict. The velocity of change in fertility rates also has no significant influence on the Gurr index.

In order to stabilise the newly-formed countries of the semi-periphery and the periphery, whose instability increases with the level of development, and which initially makes, say, Laos less prone to such conflicts as Russia or the Ukraine, the following significant processes intervene then:

* the real transfers from the centres of the world-wide market economy

* the continuing or newly formed power monopoly of a dictatorial group

* an early demographic transition

China received 11 thousand million $ of net foreign direct investment in 1992 alone. In relation to the practically predetermined conditions of the historical fertility rate and the size of the per-capita-income, a government unfortunately seems to be able to respond to the threats of ethno-political conflict by only two processes nowadays: by trying to attract foreign capital inflows and by preventing a further political democratisation. In one word, the 'Tiananmen strategy'.

Aggregate net transfers, that is to say, inflows that are greater than the outflows due to international exploitation, are lowest in countries with civil rights violations very much in excess of political rights violations and in countries with a high human development index; a relatively repressive state machinery in an environment of already begun political reforms and a high human development index are conducive to low inflows or even real outflows of capital.

The trap for the countries of Eastern Europe and the former USSR could not be worse in this context: they are low priority areas for transnational capital, because political reform has begun decisively even in countries, where civil rights violations are much higher than political rights violations, and because human development and thus also social expectations to the investor are higher than in the communist rest of Asia and in other (non-communist) dictatorships. Nothing, what has been written by political scientists in the 1960s, 1970s and 1980s has to be revoked in this context: semi-repressive regimes are much more prone to instability than full democracies and full dictatorships; and international capital flows react accordingly.

For the moment, the world economy seems to prefer the environment of low human development, where political repression is still high enough not to warrant any 'excess repressiveness' of the state security apparatus to control via infringements on the level of civil rights the destabilisation, brought about by the lowering of the rate of political repression in heterogeneous countries. Net transfers, that is to say, inflows that are greater than the outflows due to international exploitation, in turn nowadays determine to a large extent the chances of a country in the semi-periphery and periphery for social development. The empirical relationship is drastic enough to be mentioned here: life expectancy, that single, best, and most reliable indicator of the social situation of a country, is being determined by the well-known e/pi-function on the basis of real income in purchasing power, introduced in Chapter 3, and net transfers. Almost 4/5 of life expectancy in the (semi)periphery are thus being determined; net transfers are the predictor of life expectancy, whose unstandardised regression coefficient is 5 times bigger than the standard error of the estimate.

Further support to our interpretations is given by the last two regression equations in Table 4.1. Thus, the countries of the periphery and the semi-periphery today are at the mercy of transnational capital flows: they are at the mercy of transnational capital politically, because inflows of capital stabilise ethno-political conflict potential, and they are the mercy of transnational capital socially, because inflows determine to a large extent and directly the life expectancy of the populations - from Wladiwostock to Hanoi, from Riga to Tirana.

As far as these research results are concerned, they are rather in the tradition of the gloomy description of the conditions of democracy in the semi-periphery in the 1920s, written by Karl Polanyi more than 50 years ago. Will - in contrast to then - the world-wide market economy save Eastern European democracy?

Transnational crime as a global actor

A cynic could say: an economically realistic staging of a G-7 conference would have to invite today the cupolas of transnational crime. In terms of world economic power, the international drug traffic alone is more powerful than states like Spain, Russia, or Canada (our own calculations from Raith, 1995, UNDP, 1994). International illegal flight capital prefers certain economic and social conditions; and in turn, it will contribute to changing the socio-economic conditions of its host countries. To investigate the effects of international capital flights on the host countries concerned, we have developed a simple macro-quantitative model. Using standard international economic indicators from Fischer Weltalmanach, we understand money laundering to be roughly the excess international currency reserves, which are unaccounted for by the following data in a multiple regression equation:

(6.1) money laundering =
population GNP per capita growth 80-93 dyn food production food imports raw material exports fertiliser consumption curr account debt service terms of trade dyn energy production dyn energy consumption constant
prediction 687,85 1,38-7,018 -6,349 -0,8191,0837 1,7616 -12,261058,8 -98,17 1,663610,68 -1245
currency 335,4 107,2856,63 37,213 0,21191,0991 34,449 127,9536,44 447,15 0,44844,5276 6542,9
reserves 0,7034 5130,4
9,8829 50
3E+09 1E+09
t-test 2,051 0,0129 -0,124-0,171 -3,86 0,986 0,0511-0,096 1,974 -0,22 3,71 2,359

To assess, in turn, the effect of money laundering on growth, we worked with the following data matrix:

Table 6.3: Money-laundering and its destructive effects on the national economy:
population GNP per cap growth 80-93 dyn food prod food imp raw mat exp fertiliser cons curr account debt service terms trade money laund
Egyp56,4 6602,8 1,324 673392 1566 14,999 6873,6
Alger 26,71780 -0,8 1,229 97123 36176,9 95-1638,2
Argen 33,87220 -0,5 -0,35 6878 -7452 46116 -1256,7
Ethio 53,6100 -1,8 -1,26 9695 -183 967 -1857
Bangla 115,2220 2,1-0,1 1518 1032 24313,5 94-3065
Benin 5,1430 -0,4 1,925 7082 -525,9 1331949,3
Boliv 7,1760 -0,7 0,79 8158 -495 59,478 -529
Braz156,4 2930 0,31,2 1040 608-637 24,4 9722358,5
Burun 6180 0,9-0,3 1870 34-26 3652 -2734,3
Chile 13,83170 3,61,9 681 849-2093 23,4 104-524,2
China 1178,4490 8,23 319 3005 -1160911,1 101-2670,6
Costa R 3,32150 1,10,7 867 2354 -47018,1 94-6627,4
Cote Iv 13,3630 -4,6 -0,119 83132 -1229 29,279 -790,3
Dom Rep 7,51230 0,7-0,9 1647 694161 12,1 130381,3
Ecuad 111200 00,6 592 380-360 25,7 90-1905,8
El Sal 5,51320 0,20,7 1552 1073 -7714,9 88-3019,4
Gabon 14960 -1,6 -1,417 9711 -269 6106 -6344,3
Ghana 16,4430 0,10,3 1077 38-572 22,8 65-1217,9
Guatem 101100 -1,2 -0,511 70833 -687 13,293 -1290,6
Hondu 5,3600 -0,3 -1,311 86210 -393 31,573 615,7
India 898,2300 31,5 529 720-315 2896 -259,2
Indon 187,2740 4,22,2 747 1147 -201631,8 901351
Jamaica 2,41440 -0,3 114 34973 -182 20,1109 -3438,7
Camer 12,5820 -2,2 -1,915 8630 -638 20,377 702,1
Kenya 25,3270 0,3-0,4 871 410153 2881 -200,5
Colom 35,71400 1,51 860 1032 -222029,4 68246
Congo 2,4950 -0,3 -1,519 97118 -507 10,898 437,9
S-Korea 44,17660 8,20,5 67 4656 3849,2 100-693
Laos4,6 2802,1 -0,2 3396 42-13 9,690 387
Madag 13,9220 -2,6 -1,511 8125 -167 14,368 1371,7
Malaw 10,5200 -1,2 -4,28 94434 -143 22,386 4244,7
Malay 193140 3,54,3 735 1977 -21037,9 999940,5
Mali10,1 270-1 -0,9 2092 103-103 4,5102 1200,2
Maroc 25,91040 1,22,3 1743 326-525 31,7 114-1408,3
Mauri 1,13030 5,50 1334 2512 -926,4 108-6459,2
Mex90 3610 -0,5-0,9 847 653-23393 31,5 99-601,6
Nep20,8 1902 1,29 16391 -195 997 -5203,7
Nica4,1 340-5,7 -2,7 2393 246-457 29,1 941695
Niger 8,6270 -4,1 -1,817 984 -2931 1051819,7
Nigeria 105,3300 -0,1 2,118 98175 2268 28,999 311,2
Pak122,8 4303,1 1,214 141015 -3327 24,7100 -7258,4
Pan2,5 2600 -0,7-1,2 1084 47670 3,187 -1382,5
Pap4,1 1130 0,6-0,2 1789 308495 30,2 91-967,1
Para4,7 1510 -0,71,3 1183 96-492 14,9 112-5875,9
Peru22,9 1490 -2,7-0,4 2083 216-1768 58,7 902438,1
Philip 64,8850 -0,6 -1,38 24540 -3289 24,9117 1732,6
Poland 38,3 2260 0,4 0,7 11 40 811 -3698 9,2 95 -1086,5
Port9,8 9130 3,32,6 1217 813947 19,3 1043197
Roman 22,8 1140 -2,4 -2,4 14 24 423 -1162 6,2 111 4733,1
Zambia 8,9380 -3,1 -0,38 99160 -471 32,898 2707,6
Zimb10,7 520-0,3 -318 64481 -116 31,189 561,3
Sri Lank 17,9600 2,7-1,8 1628 964-381 10,1 862054,3
Sudan 26,6400 -0,2 -2,219 9972 -1446 5,491 -931,8
Tans28 900,1 -1,3 685 137-408 20,6 852134,4
Thai58,1 2110 6,40 528 544-6928 18,7 10310516
Trinid 1,33830 -2,8 -0,615 66801 12223,8 92-6794
Tunes 8,71720 1,21,5 825 223-912 20,6 100-5093,5
Turk59,6 2970 2,40,3 629 702-6380 28,3 109-5097,7
Ugan18 1801,9 0,38 1001 -107 143,649 -415,7
Hung 10,2 3350 1,2 -0,7 6 32 292 -4262 38,8 102 825,2
Urug3,1 3830 -0,10,3 857 608-227 27,7 114-4631,9
Venez 20,92840 -0,7 0,211 86874 -2223 22,893 6139,1
CAfriR 3,2400 -1,6 -119 565 -214,8 910
population GNP per cap growth 80-93 dyn food prod food imp raw mat exp fertiliser cons curr account debt service terms trade money laund

This yielded the following results, explaining almost 65% of economic growth:

(6.2) money laundering and economic growth
dyn food prod food imp raw mat exp fertiliser cons curr account debt service terms trade money laund lnGNP ln GNP^2constant
0,160315 -2,434361,86E-06 -0,00958 0,004269-4,6E-05 0,001343 -0,02796 -0,02825 0,51355311,36795
0,172427 2,3668664,77E-05 0,01811 0,0123056,88E-05 0,000313 0,010356 0,042082 0,1643427,91605
0,6475 1,728365
9,552412 52
285,354 155,3368
0,929751 -1,028520,039072 -0,52907 0,346949-0,66766 4,295231 -2,69961 -0,67126 3,124894t-test

The Matthew's effect, terms of trade, and money laundering explain significantly economic growth in the world periphery and semi-periphery from the 1980 onwards. 64.8% of total variance is accounted for by our model. Contrary to the myth, that - however morally detestable, such a shadow economy is beneficial for economic growth, the opposite holds.

7) Problem number 4: Europe must come to terms with the contradictions between Europe, the developed centre, and its Eastern European periphery, and the problems of political instability, nationalism, and unequal development, that the present form of interaction between the centre and the periphery bring about

For the Visegrad countries and Slovenia it will probably take about twenty more years at present growth rates to reach the average income levels of the European Union countries in 1994 (World Bank, WDR, 1996). Following the radical perspective, so brilliantly exposed by Claude Julien in Le Monde Diplomatique September 1996, the question cannot be how well countries like Poland adapted to a blueprint, (for example, contained in the famous White Paper of the European Commission (1995)), but what contradictions, cleavages and conflicts arose within Poland and between Poland and the old West European centres in the process of globalisation and the expansion of the market order into Eastern Europe after 1989. To put the problem in Osvaldo Sunkel's terms again: Eastern Europe saw a slow rise in the share of the gross product of foreign affiliates as a ratio to home country GDP (from 0.0% in 1982 to 1.3% in 1991), while the market-power of the transnational corporations saw to it, that the sales of foreign affiliates dominated an ever-growing share of the exports of goods and non-factor-services of the transition countries (the share went up from 0.9% in 1982 to 22.8% in 1993).

The famous Commission White Paper on the integration of the East European countries into the Union thus was an answer - but what was the question? The global economy approach is miles away from the current Union expansion optimism, prevailing in the debate about Poland. On the face of it, Poland has done remarkably well over recent years. But how often in history Poland saw spurts of growth, to be followed by conflict, stagnation and dependence from the Great Powers?

The gap between Poland and even the poorest European Union countries in many areas is still considerable. The following overview from UNDP HDR 1996 data (referring to 1993 for reasons of international comparison) about the vulnerable position of Poland in world society will quickly characterise the dimension of issues which are still at stake. The social and ecological tasks are simply enormous. And in addition, the expenditure of the state apparatus is more government-consumption oriented already than in the average EU countries, with too little emphasis on health and human capital formation:

social policy dimension PL 1993 EU average or Polish rank

in world society in 1993

life expectancy 71.1 76.8

human development index 0.819 rank 56 from 174 countries

gender development index 0.802 rank 37 from 137 countries

gender empowerment index 0.431 rank 41 from 104 countries

maternal mortality rate 19 13

population per doctor 467 301

unemployment rate 16.4% 11.1%

inflation rate 31.1% 3.5%

prisoners per 100 000 inhab. 160 87

male adults who smoke 63% 44%

female adults who smoke 29% 25%

total health expenditure as %

of GDP 5.1% 7.5%

total education expenditure

as % of GDP 4.9% 5.4%

annual growth rate of real

earnings per employee 1980-

1992 -0.8% +2.8%

weekly real hours of work

per person in manufacturing 34 39

expenditure on labour market

programmes as % of GDP 2.3% 3.3%

female tertiary students per

100 000 people 1680 2698

share of the country in the

total industrial country GNP

world-wide 0.4% 37.0%

terms of trade 1993 (1987=100) 95 103

current account balance before

official transfers in US$ mill-

ions -5927 +38860

water resources per

capita (1000m3 per year) 1.3 3.2

GDP output per kg energy

consumption in US$ 0.9 5.4

energy import dependence:

commercial energy imports

as % of merchandise exports 20% 8%

thousands of tons of green-

house gas emissions p.a. 343210 3303230

hazardous waste production

in 1000 metric tons, 1991-94 3444 48220

population served by muni-

cipal waste services in % 55% 98%

percentage of people working

in agriculture ... 27% 6%

... receiving the following share

of total GDP 6% 3%

government consumption 22% 19%

gross domestic savings 13% 20%

exports per GDP 16% 22%


Source. our own compilation from UNDP Human Development Report, 1996

For the Commission of the European Union, these dimensions at stake here were reduced to 13 questions in the field of Justice and Home Affairs and - apart from statistical background-informations - to the following number of questions in the field of Employment and Social Affairs:

12 legal and institutional framework

19 employment and employment protection

19 conditions of work and pay

7 social dialogue

7 industrial disputes

15 equality of treatment

11 health and safety at work

26 immigration policy

5 social security for migrant workers

9 social protection

12 public health and health promotion

Important tasks were achieved, but others, like the reform of the social security system, the migration law project, an efficient law against money laundering, and a law that would criminalise the possession of drugs, are either not yet on the horizon (social security reform) or are threatened to be delayed by early elections. An inter-ministerial 100 person task force is currently drafting a national drug strategy and should develop additional legislation to comply with the 1988 UN Drugs Convention, but again, internal political squabbles pose at least a questionmark behind the proposed timetable. The successive Governments of Poland have done a lot in the right directions, but the framework of a semi-periphery country in the world economy creates pressures and instabilities which largely co-determine the social policy outcomes. Published social scientific evidence (UNDP, 1996) suggests, that the following basic conditions for Polish social policy still exist - the spurt of recent economic growth notwithstanding ((i) to (ix) all UNDP data):

(i) the number of employed in Poland is still smaller by 2.4 million persons in comparison with the end of 1989

(ii) the growth of employment in the private sector did not yet fully compensate the job losses in the public sector after 1989

(iii) 800000 to 1.1 million Poles work in the 'hidden economy'

(iv) there is an alarming decline in the outflow from unemployment to official work in relation to the total outflow, suggesting that the hidden economy, illegal foreign labour, and other forms of existence compensate for the losses:

Graph 7.1: unemployment in Poland - total outflows and outflows to work, 1990-1995

(v) youth unemployment remains very high and is in fact over 30%

(vi) 280000 persons are totally discouraged from looking for any kind of work, a trend which is exacerbated by the ever more stringent requirements to receive unemployment benefits

(vii) hidden unemployment on the farms also amounts to a large number of affected people, in all 450000 to 690000 persons

(viii) both the Solidarity era and the post-communist governments are characterised by the 'equally marked absence' of a 'determined political will to reconstruct the social security system' (UNDP, 1996) social insurance benefits paid from the national budget consume now 1/6 of the total GDP. All three reform attempts - the one by the Senate in 1992 and 1993, the one by the Ministry of Labour between 1992 and 1993, and the Ministry of Finance Reform Project 1995 as yet did not become law, while the financial pressure on the state will increase with the upcoming changes in the age structure. With average pensions amounting to 75% of the average wage, the proposal of the Ministry of Labour to negotiate pension rises at the level in between pay rises (maximum) and price increases (minimum) does not sound convincing; rather, finance Minister Kolodko's proposal oriented on price increases sounded more logical. According to their own experts, the Ministry of Labour estimates that by 2000, in order to avoid a financial breakdown, the social security contribution level (paid in Poland exclusively by employers) should amount to 62.5% of gross wages, if present trends continue. By 2020, the number of pensioners will increase by yet another 3 million from 9 million persons to 12 million beneficiaries. The failure to initiate the breakthrough in 1996 will mean - especially after the political shake-up in the finance-ministry away from Kolodko in direction of the more populist PSL - that the reform of social security will be on the agenda in Poland beyond the year 2000

(ix) recent studies suggest, that the social policy frame of reference for the disabled persons in Poland is not satisfactory (UNDP, 1996). There are now 4376000 disabled persons in Poland. 60% of them only have the most basic educational level, making this group of people even more vulnerable on the labour market. The majority of disabled persons in Poland is professionally inactive. In 1995, the unemployment rate of disabled persons in the cities was 28.1%, while in the countryside it was only 6.2%. Young disabled male persons under 24 years of age have an unemployment rate of more than 50% (UNDP, 1996: 88). Almost 43% of the households of disabled persons assert that they can only afford the cheapest food and clothing. Over half are indebted and have difficulties with the repayment of debts. As many as 43% assert that they lack means for basic medicines and treatment. 85% of all disabled feel themselves excluded from the means of public transportation. The fund, created by the Polish government to care for the disabled, has often been quoted in the context of mismanagement. Pollution and low access to medical care in the countryside determine, that 39% of all disabled persons live in the villages. Alarmingly, the Polish press recently suggested, that the country's main fund-institution for the disabled, PFRON, was a hotbed of corruption and mismanagement.

Let us be realistic: with or without Union membership, Eastern Europe will be faced by the aftermath's of its transformation crisis for many years to come. Poverty and dependence have emerged as one of the most basic issues of post-communist reconstruction. The true extent of poverty is contested in the various countries of East and Central Europe, with the fairest estimates being based perhaps on recent research by the UN, the ILO and the World Bank:

Table 7.1: Poverty and peripherisation in (Eastern) Europe

a) social data
% poor (EU-criteria) life expectancy PPP (purcha-sing power) share of lowest 20% in total incomes PPP$-income of lowest 20%
Portugal24,50% 7443,8 9,20%4658,2176
Italy21,10% 7776,7 6,80%6029,2336
Greece18,70% 7734,6
Spain16,90% 7757 8,30%5469,036
Ireland15,70% 7552,2
NL14,80% 7776 8,20%7204,192
UK14,80% 7672,4 4,60%3849,9424
France14,70% 7783 5,60%5373,088
Poland 12,80%70 21,1 9,20%2244,0272
Luxembourg11,10%
FRG9,10% 7689,1 7,00%7209,972
Belgium8,60% 7678,5 7,90%7168,934

b) world economic position
trade balance.92-95 debt 95FDI current account 94-97
Czech R-5813 140005275 -6650
Hungary-10562 324918361 -9611
Poland-17696 442442098 -10944
Slovakia-931 4800681 542
Slovenia-854 2685504 809
Bulgaria-1742 10363332 -225
Romania-6084 4727884 -3728
Croatia-4495 3152224 -2397
8 reform states -48177116462 18359-32204

Source: OMRI Economic Digest, 21. week., 1996 (Poland, column 1); World Bank World Development Report 1995 (column 2-5), Stiftung Entwicklung und Frieden, 1996 (column 1, all values except Poland); Vienna Institute for International Economic Comparisons, February 1996

On a world level, the available data show, that Eastern Europe very much belongs to the countries of the periphery and the semi-periphery:

Table 7.2: Poverty on a world scale
country real GDP PPP share of lowest 40% HDIPPP$ income of the poorest 40% trend value, calculated from HDI
CND20520 17,5 0,958977,5 13000,14113
USA23760 15,7 0,9379325,8 9748,340977
Jap20520 21,9 0,93711234,7 9748,340977
NL17780 21,3 0,9369467,85 9547,701142
SF16270 18,4 0,9347484,2 9163,773431
NOR18580 190,932 8825,5 8801,656129
F19510 17,4 0,938486,85 8459,867797
SP13400 220,93 7370 8459,867797
SWE18320 21,2 0,9299709,6 8296,165775
AUSL18220 15,5 0,9277060,25 7982,342057
BLG18630 21,6 0,92610060,2 7831,917437
CH22580 16,9 0,9259540,05 7685,625428
GER21120 18,8 0,9219926,4 7139,116224
DK19080 17,4 0,928299,8 7011,530461
NZ14990 15,9 0,9195958,525 6887,32833
UK17160 14,6 0,9166263,4 6533,954863
ITA18090 18,8 0,9128502,3 6103,997561
ISR14700 18,1 0,9076651,75 5624,92576
HUN 6580 25,7 0,856 4227,65 2921,305573
POL 4830 23 0,855 2777,25 2891,893373
BUL 4250 24,3 0,796 2581,875 1813,602592
HONG20340 16,2 0,9058237,7 5449,488888
CRIC5480 13,1 0,8831794,7 3982,388689
SKOR9250 19,7 0,8824555,625 3931,55495
CHIL8410 10,5 0,882207,625 3833,129873
SING18330 150,878 6873,75 3738,838794
VEN8520 14,3 0,8593045,9 3012,969789
PAN5600 8,30,856 1162 2921,305573
MEX7300 11,9 0,8422171,75 2555,102336
COLO5480 11,2 0,8361534,4 2424,160023
THAI5950 15,5 0,8272305,625 2251,235007
MALA7790 12,9 0,8222512,275 2165,701829
BRAZ5240 70,804 9171907,79939
BOTSW 512010,5 0,763 13441517,011192
TUNI5160 16,3 0,7632102,7 1517,011192
JOR4270 16,8 0,7581793,4 1481,838888
ALG4870 17,9 0,7322179,325 1327,452726
JAM3200 15,9 0,7211272 1273,580079
PERU3300 14,1 0,7091163,25 1220,745498
DOMR3280 12,1 0,705992,2 1204,32718
SRIL2850 220,704 1567,5 1200,307847
PHIL2550 16,6 0,6771058,25 1102,78266
INDNS 295020,8 0,637 1534986,4808145
CHINA 1950 17,4 0,594 848,25 883,6034386
GUAT3300 7,90,591 651,75 876,9849307
BOL2410 15,3 0,588921,825 870,4239262
HOND2000 8,70,578 435848,9405082
MORO3370 17,1 0,5541440,675 799,4488133
ZIMB1970 10,3 0,539507,275 769,7212024
PAK2890 21,3 0,4831538,925 664,4802797
GHAN2110 18,3 0,482965,325 662,6656565
KENYA 140010,1 0,481 353,5660,8529474
LESO1060 9,30,473 246,45 646,4186041
INDIA 123021,3 0,439 654,975586,2995811
ZAMB1230 15,2 0,425467,4 562,0730941
COTE1710 19,2 0,369820,8 467,9859332
BANGLA 123022,9 0,364 704,175459,799976
MAUR1650 14,2 0,359585,75 451,6492905
NEPAL 117022 0,343 643,5425,8058487
SEN1750 10,5 0,34459,375 421,0010423
RWA710 22,8 0,332404,7 408,2519759
UGA860 20,6 0,329442,9 403,4951384
GUINB 8208,6 0,293 176,3347,4633236
ETHIO 33021,3 0,227 175,725250,151321

Column 1: GDP per capita in real PPP (UNDP, World Bank, 1994, 1995)

Column 2: income share poorest 40% (see above)

Column 3: human development index, UNDP, 1995 (see above)

Column 4: real income of the poorest 40% (column 1 * (column 2/40))

Column 5: trend value for column 4 on the basis of a non-linear regression, explaining the real incomes of the poorest 40% by the human development index

There is a clear trade-off between the size of the UNDP Human Development Index and the absolute income of the poorest sections in society:

Graph 7.2: human development and human poverty



Our calculations were based on 65 countries of the world with complete data about real purchasing power, the income share of the poorest 40% and the human development index. The rectangular dots correspond to the estimated real income of the poor in international standards (income in PPP * (income shares of the poorest 40%/40)), the trend line is the non-linear trend estimate, according to VARIATION in the EXCEL programme, using as variables the human development index ^10 and the human development index ^0,10. The trend line corresponds to an equation, that explains 89 % of total variance. The lower graph shows the results for countries, which are the transformation countries or which are on a similar or higher level of achieved human development.

The values of the UNDP Human Development Index in the region are, by international comparison:

NL 0.936 (world rank 4.)

SF 0.934

F 0.930

Spain 0.930

SWE 0.929

B 0.926

AUT 0.925

GER (incl. new B.) 0.921

DK 0.920

UK 0.916

IRE 0.915

ITA 0.912

GRE 0.907

LUX 0.893

PORT 0.874 (world rank 36.)

CZECH 0.872 (world rank 38.)

ESTON 0.862

LATV 0.857

HUNG 0.856

POL 0.855

BUL 0.796

LITHU 0.769

ALB 0.739

ROM 0.703 (world rank 98.)

Although few would challenge the diagnosis, there is of course a wide and ample debate about how to cure the ills of the region. In terms of hard cross-national evidence, the World Bank (WDR, 1996) has proposed economic liberalisation, foreign direct investment inflows, savings mobilisation, wage flexibility, government credibility and privatisation as the main pillars of it's strategy.

But the debate about Eastern European reconstruction seems to be dominated by several fallacies. The first fallacy would concern the famous hypothesis about the 'market economy without adjective nouns' as an engine of a successful transformation process. Following the logic, already proposed by Adamczyk, 1992; Angresano, 1994 and Jenkins, 1987, a de-facto policy of mass demand maintenance might be better adapted to survive the transformation shocks and might - in the end - even prove more profitable for large-scale TNC investment than the real 'shock therapy strategies'. The Czech Republic, whose prime minister - as a brilliant academic - is the most outspoken champion of the idea about 'markets without adjective nouns', is not only one of the most successful cases of liberal transformation, but also has the aspect of a bureaucratic, almost Keynesian welfare-state that survived the ups and downs of politics in the 20th century and was already practising that system before the breakdown of the Hapsburg Empire in 1918. We have for a long time advanced this point; M. Orenstein has taken up the issue in transnational research as well (Orenstein, 1996). It is certain, that the Czech Republic, even on an aggregate level before partition from its poorer cousin, Slovakia, verbally the most radical proponent of neo-conservative economic strategies in Central Eastern Europe, had a very high share of social security benefits per GDP; the level of health expenditures was way above the other reform countries; and even before partition, the human development index - in marked contrast to Poland, Albania, Romania, and Bulgaria, - was more acceptable to international standards of human capital policy. The Czech government did even intervene in less than neo-conservative economic sainthood into the workings of the labour markets. The intervention, worth 1% of GDP, was targeted to a much smaller number of unemployed persons than in Poland, Hungary and other reform nations with high unemployment. The Czech Republic, even before partition from its poorer Slovak cousin, was practically the uncontested overall social policy record holder in Eastern Europe.

The second fallacy concerns the workings of foreign capital in the region and in the development process. Simple macro-economic reasoning would already demonstrate, that a sound economy, based on dynamic export-growth and huge positive trade and service balances, tends to be an overall capital exporter and not a capital importer. The macro-economic need for high net foreign investment, hence the predominance of foreigners investing at home as compared to the investments of nationals abroad on the enterprise level precisely arises, when either export-led growth is insufficient or import-substitution strategies are in force or both. Everything that has been said over the last thirty years about globalisation can also be interpreted in terms of a radical neo-classic critique of import-substitution policies and insufficient export-oriented strategies (Ernst, 1973). In terms of the effects of globalisation on the South and the East, it should be stressed that there is a growing competition between the East and the South in terms of the 'world market for capital'. This competition makes studies, that look into the determinants of growth and development for the present time period all the more important. International development aid for the South amounted to 0.33% of OECD-countries in 1991, while funds for the East were 0.04% of OECD GNP. Accumulated foreign direct investments from the 7 biggest investors in the developed countries (US, Japan, UK, FRG, NL, France, Canada), which, in turn, control about 80% of all FDI, now amount to 1395 thousand million $, with a dramatic doubling having taken place since around 1985. In 1976, the 7 biggest investors had just invested 239 thousand million $ abroad, i.e. their foreign capital increased almost 5.8-fold since 1976. 80% of this capital is being invested in the countries of the developed hemispheres. This also says something in terms of the old debate about stability versus low labour costs as the prime determinants for the site of transnational investments. The East, hoping to attract foreign capital to the detriment of the relative share of the developed countries must ask itself, whether or not low labour costs are a necessary let alone sufficient condition to attract foreign capital.

The new debts incurred in the region (without the CIS) after the transformation were 5 thousand million $ just in 1993 alone. The right wing in Poland contends, that the left which governes Poland since 1993, has incurred a trade balance deficit to the tune of 22 billion $ since taking power. In fact, one could even argue that there was no such thing as Western aid to the East at the early stages of the transformation, especially to some transformation economies in Europe. Regimes that received real net transfers were the (former) 'real socialist' regimes of various Marxist or 'real socialist' denominations in the South and in the (former) USSR, but not all the transformation economies of Eastern Europe. Western protectionism and monopoly practices are to be held partially responsible for the fact, that aggregate net transfers to the East (after due consideration of interests paid for Western Banks, donors and profits, paid out to investors) were sometimes negative, as the following table shows in the context of the precarious social conditions, governing the lives of hundreds of millions of human beings in the former or continuously communist nations of the world and in the other (former) left-wing oriented countries in the South.

Table 7.3: the position of the East and the (former) 'de-linking' South in the new world system

a) savings mobilisation, investment, export performance and growth in Eastern Europe according to Vienna Institute for International Economic Comparisons data
savings/GDP I/GDP E/GDPGDP 1989=100 Year
2630,4 0,590,9 Bulgaria 1990
26,922,6 4,380,3 1991
14,119,9 -5,8 74,4 1992
7,715,3 -7,6 73,3 1993
12,513,1 -0,6 74,6 1994
29,928,6 1,398,9 Czech 1990
36,729,9 6,884,7 1991
27,427,1 0,479,3 1992
20,218 2,278,6 1993
20,120,5 -0,4 80,6 1994
2825,4 2,696,5 Hungary 1990
19,520,5 -185 1991
15,816,1 -0,3 82,4 1992
11,820 -8,2 81,9 1993
15,722,2 -6,5 84,3 1994
32,825,6 7,188,4 Poland 1990
1819,9 -1,9 82,3 1991
16,715,2 1,584,4 1992
16,515,6 187,6 1993
16,915,9 192,1 1994
20,830,3 -9,5 94,4Romania 1990
24,128 -3,9 82,2 1991
2331,4 -8,4 75,1 1992
2429 -576,1 1993
24,926,9 -2,1 79,1 1994
23,326,5 -4,5 77,9Slovak R 1992
16,421,9 -675,1 1993
19,417,1 6,178,7 1994
3416,8 15,7 95,3Slovenia 1990
29,515,6 12,2 87,6 1991
27,517,1 9,182,9 1992
24,119,1 383,9 1993
27,820,7 588,4 1994

b) aggregate net transfers received in b $ in 1992

Mozambique 1.060

Ethiopia 1.033

Lao PDR 0.104

Nicaragua 0.718

China 19.783

Tajikistan 0.010

Myanmar 0.087

Armenia 0.002

Kyrgyz R. 0.022

Georgia 0.0

Uzbekistan 0.056

Romania 1.056

Moldova 0.012

Lithuania 0.121

Bulgaria 0.062

Kazakstan 0.116

Ukraine 0.221

Poland -0.027

Latvia 0.114

Russian Fed. 13.895

Albania 0.375

Mongolia 0.149

Estonia 0.178

Belarus 0.182

Hungary -0.392

Source: our own compilations from Vienna Institute for International Economic Comparisons; World Bank, WDR (1994) and HDR UNDP, 1994

Although most recent data (World Bank, WDR, 1996) seem to suggest a certain reversal in the trends of the international division of labour within Europe, it is pretty certain that the whole region, from 1990 to 1995, received only 15% of all total inflows to the developing and transition countries to the tune of $1640 thousand million in the entire world economy (World Bank, WDR, 1996). The World Development Report 1996 clearly states:

'One might have expected huge imports of capital, both private and official, to participate in financing the costly economic and political transformation (...) However, except for the former East Germany (i.e. $700 thousand million), CEE and the NIS have not absorbed a great deal of foreign capital - either private investment flows or official external assistance (...) Between them the countries of CEE and the NIS absorbed 15 percent of total capital flows to developing and transition countries (...) Net resource inflows are much lower and even negative to some countries, once debt service and capital flight are taken into account. Capital flight from Russia alone has been estimated at some $50 billion (i.e. thousand million) for 1992-95, although part of this represented capital exported through Russia from other NIS (...) In 1994, FDI to CEE and the NIS was only $6.5 billion (i.e. thousand million), equivalent to the total received by Malaysia and Thailand (...) The Visegrad countries received fully three-quarters of the total, whereas many other countries in the region are still all but untouched by foreign investment (...) All in all, then, transition has not absorbed a large slice of global capital flows (...) Aid under the Marshall Plan after World War II averaged 2.5 percent of the incomes of the recipient countries at the time. Total official disbursements to the CEE economies, which have generally progressed furthest in their reforms, accounted on average for about 2.7 of their combined GDP in 1991-93. Under-recording of GDP in these economies may bias this ratio upward, but on this measure Marshall Plan disbursements were not materially larger (...) The Marshall Plan did, however, embody a larger grant element, and it was much more generous relative to the donor economy's income, at 1.5 percent of U.S. GDP.' (World Bank, World Development Report, 1996: 136 and 10)

With the opening-up of Eastern Europe to transnational capital, a very interesting social scientific experiment got underway. What are the effects of foreign direct investment on a newly penetrated economy? The UNDP HDR 1995 for Poland, drawing upon the knowledge of the Polish Central Statistical Office, mentions even a human development index of 0.801 for the whole country for 1992, which would mean world rank 53 - together with Armenia. The poorest Polish provinces in terms of the HDI - like Suwalki in the far Northeast of the country with a value of 0.707 - would be ranking 78th on the world scale - in the vicinity of countries like Albania, Grenada, Tunisia and Surinam. Little is known about the social effects of transnational penetration in Eastern Europe as yet: the penetration of Eastern Europe by direct foreign investments is a relatively new phenomenon. Although earlier studies, among them Chase-Dunn, 1982, Szlajfer, 1977 and Tausch, 1985, already stressed the world-market dependent character of 'real socialism', the flow of direct foreign investments increased significantly only after the fall of the Berlin Wall in 1989. Russia and Hungary received the lion's share of western capital flows to the East. Foreign capital in the Polish economy, that perennial testing ground for beliefs of all sort over the last millennium, is now estimated to amount to $ 7.389 thousand million (UNCTAD, 1996); the inflows are small however, compared to the massive flows of TNC capital to countries like China. The FDI stock as percentage of GDP in 1994 was already 5.1%, while in Brazil it was 8.0%. In 1992, Poland received new investments to the tune of only 678 million $, while 11 thousand million $ went to China in the same year (World Bank, WDR, 1994). Poland even paid aggregate net transfers to the West during the Solidarity years. And here, the third fallacy about post-1989 reconstruction arises: some Eastern countries were at the crucial time of the political transition in an increasingly precarious position vis-à-vis the centres of the transnational economy, just like the predecessor regimes in the region in the 1920s and 1930s and the countries of the periphery today. Aggregate net transfers are understood as aggregate net resource flows minus interest payments on long-term loans and remittance of all profits. Aggregate net resource flows are the sum of net flows on long-term debt (excluding use of IMF credit), plus official grants (excluding technical assistance) and net foreign direct investment. That is to say, Poland (just as Hungary), in reality, were de-capitalised by the world economy, when the new elites in power would have needed Western support most urgently (World Bank, WDR, 1994). As we will show below, the workings of the transnational economy did probably contribute to the political cleavages and to the downfall of the Solidarity government in 1993. The yearly de-capitalisation amounted to 27 million $. The share of foreign investment per total GDP, i.e. the value of the index, what Bornschier and Mueller (1988) call 'foreign property', is now 8.5% for the overall Polish economy. In terms of the employment effects, one finds that transnational capital now controls the most important modern, dynamic consumer goods sectors; 2.7% of the total labour force and 6.8% of all workers and employees in industry work for international firms. The private sector is dominated to a still larger degree by foreign firms; 16% of the labour force in private industry in fact works for foreign firms.

The fourth fallacy concerns the effects of 'dependent development' on the host countries. The employment effects of transnational investments were over- the socially polarising effects of transnational investments underestimated. Regional concentration of development increases, and with that the political cleavages of a basically still semi-peripheral society. Even for the case of China, the World Bank WDR 1996 states:

'FDI to China was $33.8 billion (i.e. thousand million) in 1994, second only to flows to the United States. However, a substantial portion consisted of domestic funds recycled as foreign investment to take advantage of fiscal concessions' (World Bank, WDR, 1996: 136)

A Polish case study

Poland's position in the world is first of all confronted by the fact, that since 1989 all her neighbours have changed - only the Baltic seacoast has remained the same. East Germany to the East has disappeared and has been reunited with West Germany, Czechoslovakia to the South has separated into the Czech and the Slovak Republics, and to the East, the USSR dissolved - leaving the Ukraine, Belarus, Lithuania, and Kaliningrad oblast, still pertaining to Russia, behind. The development effort of the West in such a world politically highly sensitive region - and especially TNC investment - is concentrated around the rich centres of Poland, like Warsaw, Gdansk, Katowice, Krakow, Poznan and Wroclaw. A similar picture arises from the other transformation countries. The poor rural regions of Poland are almost totally neglected by foreign capital; some run-away industries are growing up in the western regions, bordering the Federal Republic of Germany.

The transformation after 1989 destroyed more than 3 million jobs in the public sector and more than 150 000 jobs in private agriculture; in comparison to that, the performance of private national and or foreign capital in creating jobs has been more than modest:
1989 1994growth/decl.
public sector 9277,85878,4 -3399,4
private agric. 3898,73744,9 -153,8
foreign cap. 130,4228,1 97,7
other priv sec. 4082,54881,8 799,3

Source: our own calculations from G.U.S. Rocznik Statystyczny Pracy 1995

Latest statistics from the current Polish press indicate the following distribution of foreign direct investment in Poland:

Graph 7.3: MNC investments in the Polish economy


In April 1996, 2 million and 726 000 people were out of work. Foreign capital penetration did not significantly contribute to alleviating unemployment on a regional basis. It is also noteworthy, that political influence of the SLD and PSL parties biased the unemployment record of Polish regions 1993 - 1995, just as - ceteris paribus - the 'Walesa' and right-wing regions seemed to have been castigated by post-1993 regional development. Regional human capital formation, measured by the Human Development Index, contributed towards a better employment record over time of a region:

Graph 7.4: unemployment in Poland - regional aspects


The multiple regression to explain the residuals from the above Graph works with the following variables:

religious practice

external migration per total population

voting for the Peasant Party PSL in 1993

private land per total land

big estates per total land

voting for the post-communist SLD in 1993

real GDP per capita

human development index

employment in foreign capital enterprises per total employment

employment in mixed enterprises per total employment

voting for Lech Walesa in the second round of the 1995 presidential election

(7.1) the rise or fall of unemployment in Poland 1993/96 (regression residuals, Graph 7.4):
-0,005 0,33-2,422 0,649 4E-050,126 -0,097 0,05 -0,033 -0,083-0,002 0,076 -0,501
0,047 0,6030,979 10,43 5E-040,088 0,036 0,0480,018 0,067 0,0060,043 8,071
0,45 1,177
2,453 36
40,82 49,91
T-test
-0,105 0,547-2,47 0,062 0,0791,429 -2,71 1,04 -1,91 -1,244-0,378 1,756 constant
religious pract ext migr/pop PSL private land peasants big estates SLD real gdp pc HDI-index for cap pen mixed cap pen 2tour Lech Walesa

Note: as in all EXCEL 5.0 outprints, first rows are unstandardised regression coefficients, second rows are standard errors of the estimate, the third row shows the value for R^2 of the whole equation and the standard deviation of the estimate for y; the fourth row are the F-value and the degrees of freedom of the whole equation; the fifth row shows the sum of squares of the regression and the sum of square of the residuals.

Among the major problems of future Polish future development are the unemployment situation (see Graph below) and the huge influx of foreign currency reserve (already over $20 thousand million, although the balance on current account officially is still negative). The current monthly unemployment figures are compared here with the 5 - month trend line

Graph 7.5: unemployment in Poland - the time series


The percentage of women in the industrial labour-force is higher in foreign-owned firms than in national private or state firms, and exceeds also the percentage in joint-venture firms. This process might be a two-fold process: exploitation of low-paid and low-skilled female labour in typical 'sweat-shops', and the recruitment of clerical and bureaucratic staff for the command, control and communications branches of multinational corporations in Poland.

The distribution of the labour force in the industrial sector is as follows:

57.3% state capital

35.9% national private capital

2.6% foreign capital

4.2% joint ventures

The employment statistics, published by the Polish Central Statistical Office (Zatrudnenia w Gospodarce Narodowje 1994), also allow an assessment about the more indirect effects of TNC investment in Poland on the social system, especially on employment at the voivodship level. The multivariate data about regional development, which were analysed for this work, are all Central Statistical Office of the Polish Republic data, the list of variables is mentioned in the variable list at the end of this contribution. Our analysis determines the effects of foreign capital penetration on four societal variables: sexist discrimination, political cleavages, employment and life expectancy.

The following sources were used: C.S.O. 'Rocznik Statystyczny Wojewodztw', 1993 and UNDP, 1995; upward residuals from the regression line are interpreted as excess mortality for girls. The electoral performance for the political parties in Poland, autumn 1993 (SLD, PSL, UD, KPN, UP, BBW and parties not represented in the Sejm), was calculated from East European Politics and Society data, based on Monitor Polski. In addition, see the quoted sources of C.S.O. statistical data about Poland after the transformation. Some of our variables must be explained here in greater detail: by excess mortality we understand the simple residual values from the bivariate regression of female infant mortality rates on male infant mortality rates (C.S.O. 'Rocznik Statystyczny Wojewodztw', 1993; upward residuals from the regression line are interpreted as excess mortality for girls). This process of female excess infant mortality is significantly related in our multivariate equations with only one variable: religious practice as an indicator of religious traditionalism.

Under inclusion of party preference, our equation explains around 1/3 of the excess mortality rates in Poland. The regions with a preference for the liberal Freedom Union are relatively immune from the phenomenon. Regions with a high vote for the former communists and their peasant allies also perform badly on this indicator. Foreign capital penetration - ceteris paribus - even slightly increases excess mortality rates. The totalitarian heritage and the Catholic counterpart to what Benazir Bhutto once called 'this backwardness of women (which is) rooted in male prejudice and non-religious cultural taboos' seem to be related with traditional social patterns that neglect girls and their nutritional and health needs during their first year of life.

It is also interesting to see, how foreign capital penetration and structural variables pattern the political landscape in Poland, 1993. The following matrix of significant influences of foreign capital on the political process in Poland (elections of fall 1993) is to be observed:

Table 7.4a: The 1993 elections in Poland

Explanatory variable

of/for the explains ceteris paribus the electoral perfor-

region mance for the following political parties

in Poland, 14th of September, 1993:

explanatory

variable SLD PSL UW KPN

Catholicism - +

migration -

ecological crisis -

private land + +

traditional

employment in

agriculture + -

big landholding + - -

patriarchical

structures + - - -

real GDP

human development i. +

foreign capital

penetration -

mixed capital

penetration - -

R^2 68% 92% 68% 59%

Source: Our own calculations (EXCEL 4.0 multiple regression IBM PS 2 notebook N51 SX) from C.S.O. and East European Politics and Society data, based on Monitor Polski; election results 1995: Rzeczpospolita. The following abbreviations are used: SLD (post-communists), PSL (Polish Peasant Party, former ally of the communists), UW (Freedom Union, the main post-Solidarity party), KPN (Confederation for an Independent Poland, right wing-nationalist), UP (Union of Labour, the left wing of the former Solidarity movement), BBW (non-partisan Block for Reform, a party formed by former President Lech Walesa), others (right-wing parties not represented in the Sejm)

Only by including the control variable 'foreign capital penetration' into the empirical regression equations, we can show the character of the Peasant Party as a typical agrarian party, characteristic of regions with high private agriculture and low urbanisation. The post-communist SLD clearly emerged in the period 1993-95 as a party in regions with a high amount of environmental damage, in rural regions with low industrialisation and excessive sexist patterns of mortality. The post-communists clearly lost in terms of electoral support from a higher penetration of a region by foreign capital. The Unia Wolnoscy (UW) and the Unia Pracy (UP) as the liberal middle and the democratic left among the Post-Solidarnosc parties are especially weak in the regions with run-away factories owned by joint ventures. That is to say: the promises of western-induced modernisation could not be delivered; the liberal and the left sectors of Solidarity had to bear the brunt. The Freedom Alliance was still especially successful in regions with a stable and wealthier - and culturally more progressive catholic - peasantry, and was especially weak in regions with a minifundio-type of small-scale agriculture. The abyss between the town and the city, cultivated on both sides of the great divide, bodes ill for the chances of the UW to win back in 1997 at the elections the flat countryside, especially in the regions without a richer private peasantry; the 'urban and or Poznan' character of the Freedom Alliance emerges very clearly from the multivariate analysis. Thus, the democratic middle might be losing politically in a long-term perspective.

The radical right, not represented in parliament, is especially strong in regions of low urbanisation, industrialisation and high external, poverty-driven migration. In 1997, this potential certainly will still increase. Both the left and the right were, in 1993-95, the parties of the losers of the modernisation process, while the modernisation winners voted for the laic wing of the post-solidarity movement. In addition, both main post-Solidarity parties, UW and UP, were especially weak in regions with the typical run-away-industries dominated by mixed capital. The nationalistic, right-wing KPN had all the characteristics of a middle-class, far-right wing movement, associated with the urbanised regions of the country. The rise of the right-wing ROP, substituting the KPN, and Solidarity as a right-wing worker movement for the elections in 1997 as a protest movement of the workers in declining industries clearly are characterised again by this political cleavage between the modernisation winners and losers, already present in 1993-95.

The clear drifting-apart of the country and the loss of a middle-centre has indeed something to do with the kind of dependent development, that is so typical of the world-wide market economy in the periphery: the economic power of the transnational corporation in a country like Poland interacts with the unequal structure of a typical semi-periphery, and in turn leads to the 'creative destruction' of national capital on the existing markets. The share of women in total manufacturing employment is much higher in the 100% foreign-owned firms (54.4%), while national private capital, mixed enterprises and national state capital all employ only from 30% to 40% women. The high female share in foreign-dominated manufacturing mainly seems to be connected with the high percentage of investments in the textile industry.

Our analysis also shows the dilemmas, that do exist for the self-declared pro-Western, pro-market oriented leadership of the post-communists. Increases in the power of the transnationals in the country will increase the polarisation between the haves and the have-nots, and with it, the electoral acceptance of the post-communists as a typical protest party will shrink. The SLD is the only major political party in Poland, that showed a significant negative regression coefficient with foreign capital penetration. Paradoxically, today, it is the leadership of the SLD and the Unia Wolnosci, which are most favourably inclined towards foreign capital.

Our analysis also can show, which regions in Poland - in the end - prove sufficiently attractive enough to attract a significant amount of foreign investment. The traditionally poor regions of the country are even not able to attract run-away industries of the joint venture type to any significant degree. The Polish presidential elections of November 5 and November 19 repeated the tendencies analysed above, and show, how the political cleavages interacted with the world economic penetration mechanisms:

Table 7.4b: The 5th of November 1995 elections in Poland

Explanatory variable

of/for the explains ceteris paribus the electoral perfor-

region mance for the following political parties

in Poland, fall 1993:

explanatory

variable Kwas Walesa Lead Kwasn. Increase

niewski over Walesa Kwasn./SLD

1993/95

Catholicism - + - -

migration

ecological crisis

private land +

traditional

employment in

agriculture +

big landholding + - +

patriarchical

structures

real GDP -

human development i.+ - +

foreign capital

penetration - + - -

mixed capital

penetration - + - -

R^2 71.7% 72.3% 72.5% 71.2%

Source: Our own calculations (EXCEL 4.0 multiple regression IBM PS 2 notebook N51 SX) from C.S.O. and East European Politics and Society data, based on Monitor Polski; election results 1995: Rzeczpospolita. The following abbreviations are used: SLD (post-communists), PSL (Polish Peasant Party, former ally of the communists), UW (Freedom Union, the main post-Solidarity party), KPN (Confederation for an Independent Poland, right wing-nationalist), UP (Union of Labour, the left wing of the former Solidarity movement), BBW (non-partisan Block for Reform, a party formed by former President Lech Walesa), others (right-wing parties not represented in the Sejm)

Urban, less traditionally catholic, and less private-peasantry and less big landholding areas are far more attractive to transnational capital than the traditional Polish countryside, while joint ventures prefer urban low-wage areas of Poland, also characterised by the absence of a numerically strong private (and conservative) peasantry. President Walesa lost the election of 1995 mainly due to the following two effects (i) the weakness of the Catholic church under the present circumstances in Poland and (ii) the geography of transnational capital penetration:

Table 7.4c: The 19th of November 1995 elections in Poland

Explanatory variable

of/for the explains ceteris paribus the electoral perfor-

region mance for the following presidential

candidates in Poland, 19th of November 1995:

explanatory

variable Kwas Walesa

niewski

Catholicism - +

migration

ecological crisis

private land

traditional

employment in

agriculture

big landholding

patriarchical

structures

real GDP

human development i.+ -

foreign capital

penetration - +

mixed capital

penetration - +

R^2 72.4% 72.4%

Source: Our own calculations (EXCEL 4.0 multiple regression IBM PS 2 notebook N51 SX) from C.S.O. and East European Politics and Society data, based on Monitor Polski; election results 1995: Rzeczpospolita.

71% of TNC employment and 38% of joint venture employment per total employment is explained by our equations:

Table 7.5: the political ecology of foreign capital attraction to the different regions in Poland, 1993

Explan. Var. employment for multinat. Joint ventures

corporations

of/ explains (ceteris paribus)

region 1993:

employment in TNCs joint ventures

wage level -

Catholicism -

migration

ecological crisis

private land - -

traditional

employment in

agriculture

big landholding -

patriarchical

structures

industrial

employment

urbanisation + +

R^2 71% 38%

Source: Our own calculations (EXCEL 4.0 multiple regression IBM PS 2 notebook N51 SX) from C.S.O. data

Unemployment, on the other hand, is a typical phenomenon of low-wage regions with either high pollution or high agricultural employment. Foreign capital does contribute to a somewhat better employment record, but the effect is not significant. The effect on life expectancy is even negative, although not significant. We again use the standard functions for life expectancy determination, used in Chapter 3.

Thus, the societal expectations created by globalisation are not met:

(7.2a) unemployment in Poland = 26.02 - 4.18 * wage level - 1.50 * religious practice - 0.06 * outward migration + 0.24 * industrial waste - 0.00 private land + 0.58 * employment in agriculture - 0.08 * big estates + 0.04 * excess mortality + 0.00 * industrial employment - 0.02 urbanisation - 0.15 * foreign capital employment (t-value 1.5911) - 0.003 mixed capital employment

R2 = 73.39%; F = 8.27; df. = 36; alpha (one-tailed) 5% > 1.69

Life expectancy is being negatively determined by foreign capital penetration. The negative trade-off, so well known from cross-national policy planning and development research, is shown to be existing for the transformation country Poland, although the long-term negative effects of mass foreign migration on the health situation of the population in the 'guest worker export periphery' Poland are stronger than those of the direct foreign capital penetration. Here we should recall, how a guest-worker economy, in the end, can destroy the social fabric of the sender-country.

Environmental decay is related to the general life expectancy situation in Poland, but the directly observable statistical effect is weak and below the usual significance levels, because the other intervening variables, like the social and biological stress of a guest-worker economy, are stronger. It will be expected, that especially cardeo-vascular diseases increase under the pressure of migration and family separation. The typical urban/rural cleavages, so well-known from policy planning and development research about the capitalist periphery (Lipton, 1977), again emerge to be relevant also for the post-communist capitalist periphery. Urbanisation is a positive significant determinant of life expectancy; the functions, introduced in Chapter 3 for the purpose of this contribution, hold again.

At the time of the writing of this analysis - July 1996 - a coalition between the right-wing political parties and the peasants might well be the most probable final outcome for Poland in 1977, making the business of the westward integration of Poland - in the economic sense - certainly harder, because these groupings will have to take into account the economic interests of the Polish periphery.

Again, it is being confirmed that the world-wide market economy creates growth and employment only to some extent, but that its effects on the social sphere are contradictory. Ceteris paribus, the control of foreign capital over overall employment is even slightly negatively related to life expectancy at the voivodship level. Our results about Poland should also be seen in the more general context of our results about the transformation dynamic of Eastern Europe.

Up to now, the leading elites did not question the basic principles of Western integration of the country. Constellations might arise now, which will be more nationalistic in orientation, reflecting the peripheral role that Poland still plays in the world economy.

The Eastern part of Europe and the long Kondratieff wave: historical and macroquantitative evidence

Just as during the world depression of the 1930s, democracy could not survive in the region (Polanyi, 1944), today the danger arises, that instability and not democratisation will triumph in the end, especially in countries like those of the former USSR. The turning points in the long waves between the ascents and decline phases (B-phases) were always the beginnings of political decay in the region as well, while the ascent phases were associated with authoritarian modernisation; time-lags between the Western cycle and the Eastern semi-periphery and periphery have to be admitted. The decisive-kairos-years are:

1509

1539

1575

1621

1689

1756

1835/42

1884

1933

1982

The logic of the Kondratieff waves from 1756 onwards are given as follows:

social process cycle 1756-1835/41

basic project defeudalization

prosperity reform compulsory education,

conscription; American and

French Revolution;

Joseph II (Austria)

mid-cycle conflict wars of the French Revolution,

Napoleonic wars

Poland: 1807 Duchy of Warsaw

technological change

basic industrial steam engine (end 18th century)

projects 'Spinning Jenny' (J. Stargreave, 1770)

new technologies steam locomotive 'Puffing Billy'

emerging during (W. Hadley, 1813)

prosperity re-

cession

Unresolved problem freedom of association

crisis of the model revolution 1830

Poland: rebellion 1830/31

international regime

A-phase British naval

dominance (George III)

B-phase 'congress of Vienna'-regime

dominant economic

theory A. Smith, 1776

political economy of

world system D. Ricardo, 1817

-------------------------------------------------------------------------------------------------

social process cycle 1835/42-83 1884-1932 1933-81

basic project freedom of market enlargement welfare

and enterprise of participa- state,

tion corporatism

prosperity reform freedom of asso- social secu- educational

ciation rity, parlia- reform,

mentarism civil

rights,

emancipation

of women

mid-cycle conflict wars and civil Eastern Europe: Vietnam war,

wars Revolution world student

Poland: revolution 1905 rebellion

1863/64 1968

strikes,

terrorism

Polish

Winter 1970

technological change

basic industrial railway, steel, oil,

inputs and steamship electricity, synthetics,

technological electric automobile

projects motor

new technologies steel petrochemicals chips

emerging during

prosperity re-

cession

unresolved prob-

lem enlargement relationship basic income

of participation capital, la- environment

bour, state unequal

exchange

crisis of the

model revolution revolution contestation

1871 1917 of the model

Poland: Poland: from 1968

socialist strikes onwards

movement peasant

1880s uprisings Poland:

1936/37 Summer 1980

international regime

A-phase liberal mercantilism Bretton

world trade Woods

B-phase -"- hypermercan- neo-

tilism protectio-

nism

dominant eco-

nomic

theory J. St. Mill, A. Marshall, J.M. Keynes,

1848 1890 1936


political economy

of

world system K. Marx, 1867 R. Hilferding, K. Polanyi,

1910 1944

from E. de Boer and Arno Tausch 'The Imperative of Social Transformation'

The danger is of course, that the Cold-War structure will be substituted by a new power rivalry between the former members of the winning coalition of World War II:

Hegemonial wars in the world system from 1495 onwards

Role in War Thirty Years War Napoleonic WW I+II

losing hegemonic

contender Hapsburgs France Germany

new hegemon Netherlands Britain USA

newly emerging

challenger: eco-

nomically deci-

mated member of

winning coalition France Germany China+

Russia

past

contender for

systemic hegemony,

joining the war

effort of the

winning coalition Sweden Hapsburgs France

Portugal

The former hegemonic contenders slowly slide into an acceptance of their status in the international system. The real power struggle erupts already soon after the great hegemonic war, and through the ups and downs of the history of the system evolves slowly into the hegemonic challenge. Seen in such a way, not 1989, but Korea and Vietnam could become rather the benchmarks of the future W-structure of conflict in the international arena. For the foreign policies of the European Union, it is also important to notice the following tendency: German-Russian alliances tend to happen during depressions, and they break up during the economic upswings of the world system:

Khol + Gorbi/Boris 1985 ff.

Rapallo 1922

Bismarck's Three Emperor Alliance 1873

Holy Alliance 1815

Alliance Russia-Germany 1764

Nordic War 1700-1721

The relationship of the Kondratieff and Kuznets cycles with Russian history is the following:

Reforms

KONDRATIEFF Perestroika, Lenin's NEP,

OR KUZNETS Great Reforms 1861,

DOWNSWING Katharinas Assembly 1775

Nobility's Victory 1730,

Split of the State Church 1653,

Boris Godunow 1598-1605

Repressive Modernisation

KONDRATIEFF Joseph Stalin,

OR KUZNETS Imperialistic Expansion

UPSWING and Repressive Industria-

lisation at the end of 19. th century

Nikolas the

Gendarme of Europe,

Elisabeth's expansionist

policy,

Peter the Great,

Michael III,

Iwan the Terrible

Reform Repression

<----------------------------------------------------------------->

1985 'Gorbi' <--------------> 1928 Stalin

57 Years

64 Years 47 Years

1921 NEP <--------------> Alexander III

40 Years

60 Years 56 Years

1861 Great Reforms <--------------> Nikolas I 1825

36 Years

86 Years 84 Years

1775 Constituent <--------------> Elisabeth's expansionist rule

Assembly 34 Years 1741

45 Years 52 Years

1730 Victory of <--------------> Peter I 1689

Nobility 41 Years

77 Years 76 Years

Church Split 1653<--------------> Michael III 1613

40 Years

55 Years 48 Years

Boris Godunow 1598 <--------------> Iwan's 'Oprichina' 1565

33 Years

Average periods of Russian history:

Perestroika <--------------> authoritarian modernisation

40 Years

64.5 Years 60.5 Years

_____________________________________________________

Seen in such a way, there is even little that the West seems to be able to do to stabilise democracy in Russia. However, the return of the East Europeans towards a more 'middle of the road' and sensible philosophy - whatever the colour of the government (Orenstein, 1996) - seems to be an urgent necessity, after the ups and downs of central planning and 'the central market principle'.

It is now time to look at the transformation success or failure using methods of cross-national development research. Such studies are relatively scarce and are only now just beginning to emerge, with the World Bank World Development Report (1996) leading the field. Our data selection from the world of transformation shows, that a rapid privatisation is not in itself a precondition of a more rapid socio-economic development, and that a policy oriented towards human development and democracy will be successful, while extreme egalitarianism has certain growth limits in the region:

Table 7.6: The transformation success or failure 1989-95
gdp(1989=100) privatisation Pol Rights Violations 1991 urbanisation ln (GNP) ln(GNP)^2 HDI
CS85 702 657,9047039 62,484344 0,872
SLOK84 602 577,5755847 57,389483 0,872
H86 602 638,1167156 65,881073 0,856
PL97 602 637,7231201 59,646584 0,855
RU81 405 547,0387835 49,544474 0,703
BUL75 452 697,0387835 49,544474 0,796
ALB75 604 365,8289456 33,976607 0,739
EST74 652 728,0326849 64,524026 0,862
LAT54 602 727,60589 57,849563 0,857
LIT42 552 707,185387 51,629787 0,769
ARM37 455 686,4922398 42,149178 0,715
AZE35 255 556,5930445 43,468236 0,696
BRU54 154 687,9620673 63,394516 0,866
GEO17 306 576,3630281 40,488127 0,709
KAZ44 255 587,3524411 54,05839 0,798
KYR43 405 396,7452363 45,498213 0,717
MOL42 305 496,9660242 48,525493 0,755
RUS49 553 757,7579062 60,185109 0,849
TAD40 155 326,1527327 37,85612 0,643
TUR63 156 457,237059 52,375023 0,731
UKR43 353 697,7007478 59,301517 0,842
UZB82 306 416,8772961 47,297201 0,706
privatisation Pol Rights urbanisation ln (GNP) ln(GNP)^2 HDI

Sources: Osteuropa-Institute Munich, Working Paper 186 (GDP growth, privatisation); Stiftung Entwicklung und Frieden (Political Rights Violations, based on Freedom House); UNDP, 1995 (urbanisation, Human Development Index); Fischer Weltalmanach (GNP per capita)

The multiple regression results from the above Table are given in Table 6.2:

Table 7.7: The determinants of economic growth in the transformation countries
privatisation Pol Rights urbanisation ln (GNP) ln(GNP)^2 HDI Constant
econ growth -23,53855 -2,007199 51,691191 -1,265286 -2,739098 0,6255463 -132,3854
145,43797 10,124597 139,62757 0,4348674 5,155963 0,346291514,0504
0,594606 16,348397
3,666841 15
5880,2214 4009,0513
t-test -0,161846 -0,19825 0,3702076 -2,90959 -0,531249 1,806418

Note: as in all EXCEL 5.0 outprints, first rows are unstandardised regression coefficients, second rows are standard errors of the estimate, the third row shows the value for R^2 of the whole equation and the standard deviation of the estimate for y; the fourth row are the F-value and the degrees of freedom of the whole equation; the fifth row shows the sum of squares of the regression and the sum of square of the residuals. The sixth row is the t-test, calculated from row (1) and (2)

59.5% of growth are explained by our equation. Thus, it emerges that the best strategy to avoid stagnation is a policy of thorough-going reform, that assures a high human development index and a fair amount of political and civil liberties. However, the region seems to be beset by an excessive amount of egalitarianism, that becomes a stumbling block against long-run economic growth, when the share of the top income earners in total incomes falls below 35%, when taxes - compared to development level - are very high, and when the social services consume a percentage of total expenditures, that is comparable to the most advanced welfare states in the world. The share of the richest 20% in total incomes in the region, with the notable exception of Russia, is even lower than the respective share in most developed welfare democracies, like Sweden, Finland, the Netherlands, Denmark, and Norway, or - for that matter - in the market 'tiger economies' of Asia. Tax rates per total income in Eastern Europe skyrocket and savings are generally low, as the following materials from the World Bank WDR, 1996 for the former or continuously communist countries show by international comparison. Up to a certain point, social security expenditures of the state stabilise mass demand and contribute to economic growth. High inequality rates, like in Brazil, where the top income earners received 67.5% of total incomes in 1989, are certainly growth-inhibiting as well (Tausch/Prager, 1993). But when income differentiation is below a certain limit - as in some countries of Eastern Europe and the former USSR - also negative consequences arise:

Table 7.8a: Inequality, savings, taxes, and social expenditure. Evidence from Eastern Europe by cross-national comparison

Share of the top 20% dom. savings rate tax revenue % expenditures

in total incomes per GDP per GNP social services

transformation countries:

Lao PDR 40.2% - - -

China 43.9% 44% 2.6% 3.3%

Moldova 41.5% 0% - -

Kazakstan 40.4% 20% - -

Bulgaria 39.3% 21% 29.3% 36.3%

Romania 34.8% 25% 26.5% 46.9%

Lithuania 42.1% 11% 18.3% -

Ukraine 35.4% - - -

Belarus 32.9% 27% 30.8% 57.2%

Slovak R 31.4% 23% - -

Latvia 36.7% 25% 25.3% 52.8%

Poland 36.6% 17% 37.9% -

Russia 53.8% 29% 19.1% 54.1%

Estonia 46.3% 28% 29.1% 56.4%

Czech R. 37.4% 20% 38.0% 60.6%

Hungary 36.6% 15% - -

Slovenia 37.9% 25% - -

by comparison:

Austria - 26% 33.7% 70.1%

Finland 37.6% 20% 29.6% 59.3%

Netherlands 36.9% 24% 44.7% 69.3%

Sweden 36.9% 17% 31.7% 56.8%

Norway 36.7% 26% 37.0% 55.6%

Denmark 38.6% 21% 33.3% 53.5%

Japan 37.5% 32% 17.8% 59.2%

Indonesia 40.7% 30% 16.3% 14.4%

Thailand 52.7% 35% 17.0% 35.4%

Hong Kong 47.0% 33% - -

Singapore 48.9% 51% 17.1% 35.9%

Source: our compilations from World Bank, 1996, WDR

Graph 7.6 shows furthermore materials based on recent World Bank (WDR, 1996) research on the Gini-Index of inequality and economic growth. Table 7.8 lists the raw data, together with background data on political and civil rights violations. Equation 7.3 again shows that political repression is incompatible with transformation, while Graph 7.6 analyses the bivariate relationship between inequality and growth:

Table 7.8b: Gini-Index of income inequality in the formerly socialist or quasi-socialist countries
Country GINI inequality pol rights violations civil rights violations GNP per capita growth 85-94
Tanzania 0,3816 5140 0,8
Vietnam 0,3577 7200
G-Bissau 0,5626 5240 2,2
Lao PDR 0,3047 6320
Nicaragua 0,5034 5340 -6,1
China 0,3767 7530 7,8
Moldova 0,3445 5870
Kazakstan 0,3276 41160 -6,5
Bulgaria 0,3082 21250 -2,7
Romania 0,2554 41270 -4,5
Lithuania 0,3361 31350 -8
Algeria 0,3877 61650 -2,5
Ukraine 0,2574 41910 -8
Belarus 0,2165 42160 -1,9
Slovak R 0,1953 42250 -3
Latvia 0,273 32320 -6
Poland 0,2722 22410 0,8
Russia 0,4963 42650 -4,1
Estonia 0,3953 22820 -6,1
Turkmenistan 0,358 77
Czech R 0,2661 23200 -2,1
Hungary 0,271 23840 -1,2
Slovenia 0,2821 27040
Country GINI inequality pol rights violations civil rights violations GNP per capita growth 85-94
Country GINI inequality pol rights violations civil rights violations FCAPPen
Tanzania 0,3816 51,3
Vietnam 0,3577 71,9
G-Bissau 0,5626 56
Lao PDR 0,3047 612,1
Nicaragua 0,5034 510,8
China 0,3767 717,9
Kazakstan 0,3276 43
Bulgaria 0,3082 20,6
Romania 0,2554 41,8
Lithuania 0,3361 31,7
Algeria 0,3877 62,9
Slovak R 0,1953 43,2
Latvia 0,273 38,5
Poland 0,2722 25,3
Estonia 0,3953 226,5
Czech R 0,2661 29,9
Hungary 0,271 215,6
Country GINI inequality pol rights violations civil rights violations GNP per capita FCAPPen Unemployment
Bulgaria 0,3082 21250 0,610,4
Romania 0,2554 41270 1,87,1
Lithuania 0,3361 31350 1,77
Moldova 0,3445 5870 1,51,6
Ukraine 0,2574 41910 0,71
Belarus 0,2165 42160 0,23,7
Slovak R 0,1953 42250 3,212,1
Latvia 0,273 32320 8,57
Poland 0,2722 22410 5,314,3
Russia 0,4963 42650 0,93,6
Estonia 0,3953 22820 26,5 2,2
Slovenia 0,2821 27040 2,213,2
Czech R 0,2661 23200 9,92,8
Hungary 0,271 23840 15,6 10,6
Slovenia 0,2821 27040 2,213,2

Source: our own compilations from UNDP, 1996; World Bank, WDR, 1996; UNCTAD, 1996; Stiftung (1996, for the Freedom House data series); Polish Central Statistical Office, Poland Quarterly Statistics, 4, 2, 1996: 52 (unemployment figures)

Our analysis now shows, that on the world level, even assuming a polynomial expression of the third order, inequality - especially at the lower and middle stages - does not benefit economic growth, and only some outlying cases push the curve upward again at the extremes. On the level of the transformation countries, the story is different, though:

Graph 7.6: inequality and economic transformation on a world level and in the transformation countries

a) UNDP data on the difference between the top and the bottom 20% income earners and economic growth on the world level, 1980-92


b) data on the transformation countries


For the countries with complete data, the following equations emerge. It shows, that the egalitarianism of such movements as Solidarnosc might have its deep roots in East European history, but that economically, it is counter-productive. Inequality is positively related to economic growth in the transformation regions, and it lowers unemployment; while transnational investment dependence brings about higher inequality and - ceteris paribus - it does not alleviate unemployment due to the capital intensity of most investments. For Eastern Europe, the choice is not the one between Latin American inequality rates (towards which Russia seems to be heading) and the former communist egalitarianism; rather the choice is the one between continuing present rates of egalitarianism (like in Belarus) at the price of stagnation or to opt for distribution and growth patterns like in the more egalitarian developing countries of East Asia.

Equation (7.3a): economic growth =

Gini inequality political repr. civil rights ln (GNP) (ln(GNP))^2 constant

violations
10,91358546 -162,8188826 -0,722897795 0,116576987 -11,0941545 607,4708743
2,711016139 39,90219401 0,98220757 0,764921232 10,11245772 148,4162944
0,6951136 2,732458439
4,103838325 9
153,2030379 67,19696207
4,025643853 -4,080449376 -0,735992897 0,152403911 -1,097077962 t-test

Gini inequality political repr. civil rights ln (GNP) (ln(GNP))^2 constant

violations

Equation (7.3b): GINI income inequality =
pol rights violations civil rights violations FCAPPen lnGNPpc lnGNP^2constant
-0,018992718 0,176971676 0,004611249 -0,020469912 0,006726173 0,061751233
0,025122747 0,324494352 0,002916141 0,028052902 0,020223575 1,016901378
0,504766872 0,0779586
2,24235225 11
0,068139965 0,066852977
-0,755996872 0,545376754 1,581284635 -0,729689648 0,332590687
pol rights violations civil rights violations FCAPPen lnGNPpc lnGNP^2

Equation (7.3c): unemployment rate =
GINI inequality pol rights violations civil rights violations GNP per capita FCAPPen constant
-0,218971053 0,000392913 -1,528791364 -0,907559915 -17,56078807 19,53812103
0,183471851 0,000686046 2,166180602 1,418759587 14,50565314 6,935047266
0,56989396 3,83321918
2,385014466 9
175,2218765 132,2421235
-1,193485827 0,572720543 -0,705754341 -0,639685485 -1,210616847 T-test
GINI inequality pol rights violations civil rights violations GNP per capita FCAPPen

Source: our own calculations from the above Tables with EXCEL 5.0 multiple regression routine.


There is little, that foreign aid will be able to do to maintain growth in the more advanced countries of the region or to shorten the transformation recession in the laggard countries of Eastern Europe. Aid dependence - beyond a certain point - rather seems to contribute to the stagnation path of the laggard countries. However surprising this might sound, the empirical evidence from the World Bank WDR, 1996, is the following:

Table 7.9: foreign aid, aggregate resource flows per GNP and economic growth in the transformation countries

Aid 94 Growth 95 Resource flow
Albania 7,86 9,1
Bulgaria 1,63 0,1
Croatia 2 0,3
Czech R. 0,45 7,8
Hungary 0,52 7,3
Macedonia -4 -2,4
Poland 27 3,8
Romania 0,57 4,3
Slovak R 0,67 6,6
Slovenia 5 2,4
Armenia 6,97 7
Azerbaijan 4-17 3,7
Belarus 0,6-12 1,6
Estonia 0,94 5,5
Georgia 8,4-5 9
Kazakstan 0,3-9 4,4
Kyrgyz R 5,8-6 5,9
Latvia 0,91 5,2
Lithuania 1,43 1,8
Moldova 1,42 5,1
Russia 0,5-4 0,8
Tajikistan 3,2-12 11,5
Turkmenistan 0,1-5 1
Ukraine 0,4-12 0,9
Uzbekistan 0,1-2 0,2
China 0,610,2 9,6
Mongolia 22,56,3 14,4
Vietnam 5,29,5 6,5

Legend: our own compilations from World Bank, WDR, 1996

This results in the following scatterplots with the trendlines:

Graph 7.7a: foreign aid and economic growth in the transformation countries

Legend: economic growth (y-axis) depending on official development assistance in % of the GNP

Graph 7.7b: foreign aid per capita and economic growth on a world level


Legend: UNDP, HDR, 1994 and 1995 data on aid per capita and economic growth 1980-92. The countries with a negative aid per capita are the donors.

Graph 7.7c: resource flows and economic growth in the transformation countries

Legend: economic growth (y-axis) depending on aggregate net resource flows in % of the GNP. The graph shows three possible scenarios for the bivariate effects of resource flows on growth in the region of CEE and the former USSR.

Eastern Europe cannot be 'saved' by external means or by external means alone. The mobilisation of savings and exports, a clear-cut policy of human capital formation and technology, and various other reforms would achieve much more lasting effects than transfers even on a scale like in East Germany. Our cross-national evidence, up to now, did not take into consideration the influence of 'internal' reform policy variables vis-à-vis the workings of the other variables. The World Bank has developed a liberalisation index, which measures the extent to which policies supporting liberalised markets and entry of new firms prevailed. The index is a weighted average of estimates of liberalisation of domestic transactions (price liberalisation and abolition of state trading monopolies), external transactions (elimination of export controls and taxes, substitution of low to moderate import duties for import quotas and high tariffs, current account convertibility), and the entry of new firms (World Bank, WDR, 1996). The weights on these components are 0.3, 0.3, and 0.4, respectively.

Table 7.10 now summarises our data base, which we used - in addition to Table 7.6 - to determine the transformation success or failure of Central and Eastern Europe and the former Soviet Union:

Table 7.10: The external conditions of the transformation and the World Bank's liberalisation index:
net flows per GNP development assistance per GNP present value of external debt per GNP liberalisation Index
7,80,4 289,3 CS
6,60,6 308,5 SLOK
7,30,5 669 H
3,82 379 PL
4,30,5 177,1 RU
0,11,6 1006 BUL
9,17,8 457,5 ALB
5,50,9 49,3 EST
5,20,9 68,2 LAT
1,81,4 78,5 LIT
76,9 86 ARM
3,74 34,5 AZE
1,60,6 54,8 BRU
98,4 566 GEO
4,40,3 145,9 KAZ
5,95,8 138,3 KYR
5,11,4 126,8 MOL
0,80,5 236,9 RUS
11,53,2 253,8 TAD
10,1 12,1 TUR
0,90,4 65,9 UKR
0,20,1 55,3 UZB
NET FLOWSDEV ASS NET DEBTLiberalisation

Source: our own compilations from World Bank, WDR, 1996

Equation (7.4) now summarises our final research results about the transformation success/failure in Eastern Europe and the former USSR:

(7.4) economic recovery in Eastern Europe and the former USSR:
privatisation Pol Rights Violations ln (GNP) ln(GNP)^2 HDINET FLOWS DEV ASS Liberalisation Constant
0,536737 -6,757594 -0,988263 -4,253716 18,634372 -274,6279 4,6616276 0,9327711024,9646
5,2836872 2,9991756 1,9402744 167,95219 13,84864197,52304 5,844472 0,6182559 727,345
0,5709663 18,06576
2,1625809 13
5646,4411 4242,8317
privatisation Pol Rights Violations ln (GNP) ln(GNP)^2 HDINET FLOWS DEV ASS Liberalisation
0,1015838 -2,253151 -0,509342 -0,025327 1,3455741 -1,390359 0,7976131 1,5087134

Source: our calculations from the above Tables on the basis of the EXCEL 5.0 multiple regression programme

The indicators, which affect transformation in a significant and positive direction (10% error probability) are liberalisation and the freedom from political repression. Thus it has been established again, how important it is for the transformation countries to carry on with political transformation and reform. Our results, by and large, confirm the conventional UNDP wisdom on the transformation process, already expressed in the UNDP 1992 and 1993 Human Development Report. The 'constitution of liberty' in the economic sphere demands the constitution of liberty in the political sphere. Confronted with the 'market frenzy' of the early transformation years, our results do not explicitly contradict, but they do correct much of the conventional neo-conservative wisdom prevailing at that time. Measures aimed at maintaining and building up democracy and human development are just as important as the fight against local monopolies, expressed in the liberalisation index. Privatisation, external development assistance and capital inflows, under due consideration of these factors, are not so important as these, more immediate goals, which find their ultimate aim, above all, in the rule of law.

Our analysis of the trajectory of the transformation countries should be concluded by an assessment of the realistic possibilities for EU-eastward expansion. At the one hand, Western Europe should avoid illusions about its own weak position in the world economy, especially regarding the European Southern periphery. Extending the Union eastward, would mean first and foremost adding another group of countries whose official current account balance is structurally negative. In 1994, the only European Union countries with a very favourable current account balance were the Netherlands, Italy and France, while Germany's balance was only +$2.3 thousand million.

Germany's tragedy always seems to be a 'sandwich' position between the dominant centres of martime capitalist accumulation and the temptation to squeeze the East European 'hinterland' in order to be able to challenge the world hegemonic leaders (Arrighi, 1995). Germany's current account balance after German unification can only increase at the expense of the East European current account balance - a potential of economic nationalism and conflict in the new European house after 1989.

Secondly, the environmental strains, already existing in the Union, will increase. But thirdly, and above all, eastward expansion of the Union will be first and foremost a test of Europe's ability to stand by it's commitment towards democracy on the European continent. A well-designed policy of Eastern European integration into the Union, that stresses the elements of democracy, savings mobilisation, liquidation of local monopolies (also for the sake of the environment!) and early market access for the East Europeans in all labour intensive and in the agricultural sectors, could be successful; however, this policy would imply, that the European centre itself adapts rapidly to the contemporary challenges. Seen in such a way, the overall picture, emerging from our comparison, is not too negative for the East Europeans:

Table 7.11: EU-eastward expansion - a synopsis of the conditions, prevailing in the European periphery:
current account balance per GNP 1994 CO2 emissions in millions of tons 1994 government surplus or deficit per GNP 1994 political repression 1993 civil rights violations 1993
Greece-6,3 73,9-15,6 13
Portugal-1,9 47,2-2,2 11
Spain-1,5 223,2-4,8 12
Ireland2,3 25,1-2,3 12
Italy2,5 407,7-10,6 13
Bulgaria1,9 54,4-4,5 22
Romania-1 122,1-2,5 44
Lithuania 22 13
Slovak R5,8 37 34
Latvia 14,8-4,4 33
Poland-3,1 341,9-2,4 22
Croatia0 16,21,7 44
Estonia-1,7 20,91,2 32
Czech R0 135,60,9 12
Hungary-9,4 59,9 12
Slovenia3,9 5,5 12

Sources: (1), (2), (3) World Bank, WDR, 1996; (4) and (5) Stiftung Entwicklung und Frieden, 1996, based exclusively on Freedom House

Graph 7.8: the weighted averages of the economic and political indicators of European periphery countries

Legend: columns, left-hand scale: average of the 'double deficits' in the current account and in the budget; right-hand scale, dotted line: average of political and civil rights violations. Best value: - 1; worst value: - 7.

Eastern Europe's case during the negotiations with Brussels will be, that at present, its performance is not worse than that of the European Union periphery. Poland, the Czech Republic and Slovenia have still both a relatively favourable economic record, and the democracy scores in 1993 were as good as those in Italy and Greece. The question is, however, how many more European peripheries the Union can reasonably afford.

8) Problem number 5: Europe must come to terms with the contradictions of the process of the ageing of democracies, especially phenomena which one might term sclerosis bruxelliana and sclerosis Europea

The political project of transformation from communism in Europe is not only endangered by the contradictions, globalisation creates in its host countries, it is also threatened by negative developments in the European 'anchor economy'. It would be a fatal conceit to try to disconnect the trajectory of the centres from the tendencies of globalisation and destabilisation, which we have discussed above. Up to now, we studied the logic of world and East European development after 1980 on the level of global society, on the level of the less developed countries and on the level of the transformation countries. It is now time to turn our attention to the logic of development on the level of the developed capitalist democracies. Why is there a real danger of a European failure? In terms of the foreign policy choices on the European continent, there is no alternative to the Union of western democracies, now comprising 15 historically relatively stable Western democracies. The process of the unification of the European continent gathered momentum with the recent expansion of membership to Austria, Finland and Sweden, three countries, characterised by traditional world political neutrality and a social welfare state system. Among the Western European countries, only neutral Switzerland, the NATO-countries Iceland and Norway, and the small-states Andorra, Monaco, San Marino, the Vatican, Malta and Cyprus are now still left out from the Union. But with the upcoming European Union Government Conference in 1996, important decisions not only on the international political role of Europe in the world, but on the socio-economic future of the European Union itself will have to be taken. The problem is of course which Union. We concentrate here on these issues, which have a long-term strategic and theoretical relevance for the policy formulation in the new Europe. In order to provide a valid strategy to its member countries, the Union has to be an association of world economic ascent and not a club for joint world economic decline. The fundamental question, why some nations are performing differently from the others, is applied here to the Western industrialised democracies.

Very early on, a group of European policy planning and development researchers, headed by the late Dudley Seers, challenged head-on the reigning visions of the development strategy of the Commission in Brussels towards the Third World and towards the European periphery (Seers, 1978; de Bandt et al., 1980). This theoretical challenge, still worthwhile reading today, was the first real and systematic question mark behind the policies of the Commission since 1958. The authors of that critique were a European-wide group of committed students of development and committed Europeans at the same time. Its leader, Dudley Seers, as one of the doyen of development and distribution theory among the world-wide profession of economists, having influenced the course of Keynesian economics over the whole post-war years in Britain, took up the issue of the centre-periphery relationship that characterises the South, Northwest and eastbound relationship of the Union (Seers, 1978). Several authors, most notably Inotai and Malcolm, developed these arguments from a later, liberal perspective. With its emphasis on structural protection, Inotai maintains, the Union increases rather than decreases the long-term cleavages between the centres and the peripheries inside and outside the boundaries of Europe. Today, it is no secret, that 90% of all EU expenditure, union-wide, must be categorised as subventions. With each expansion to semi-peripheral regions, the protective element increases. Simple, as the diagnosis might sound, it strikes at the very heart of the conventional Union wisdom on matters of external economic relations. A good part of professional economists the world over, liberal and radical social scientists alike, have later taken up this theme. They maintain that the Union, by its market protecting arrangements with the outer rim of its orbit of influence leads to a secular negative balance of trade of the periphery regions with the Union, and thus prolongs structural underdevelopment (amongst others such divergent authors as Hickman, 1994; Inotai, 1993; Kennedy, 1993; Amin, 1994). The arguments of such Union critics cannot be dismissed a-priori and out of hand. Western Europe loses in terms of world market shares vis-à-vis the countries of the Pacific; the dynamics of growth in the world economy seem to work to the detriment of the old European centres. The European Union shortcomings vis-à-vis the Pacific in terms of world export markets for manufactured goods, in terms of comparative labour costs, in terms of technological and scientific development and in terms of employment are all too obvious and were described in recent literature in all detail (Inotai, 1993; Kennedy, 1993; Tausch and Prager, 1993). The fundamentals of the European Union still reflect the realities of the late 1950s and still comprise the following sectors (i) the coal and steel community (ii) agricultural self-sufficiency (iii) the customs union. The new international division of labour, that characterises the world economy since the late 1960s, is the prime challenge to the logic of the Union, built around and evolving from the Franco-German alliance of the late 1950s (Inotai, 1993). Precisely these sectors are most seriously affected by world economic and technological changes. The annual cost of the common agricultural policy of the Union is now estimated to be $ 45 thousand million, more than 10% of this is believed to be paid to criminal channels (Malcolm, 1995: 57). It dominates the Union's external trade policy, distorting the world market and preventing the poor countries from exporting.

Our dire prediction in the context of the theory of globalisation is, that the Union, as it is now structured, is not a strategy of world capitalist ascent, but rather a strategy for the acceleration of world economic decline of the European countries. A major problem, which has to resolved first and foremost, is Germany's apparent inability to comprehend and play its role as a highly developed Mexico in the world economy. Similar in population size to that of Mexico, and with a share of roughly only 8% of world GNP, Germany's first and foremost role would be that of a highly specialised trade and current account surplus economy in the heart of a Europe, oriented towards the West and towards the Atlantic and the Pacific, still and increasingly the major centres of the world economy. But Germany is estimated to have spent $ 14 thousand million alone to prop up in vain the Italian Lira recently. In 1993 alone, Germany poured another 9.1 thousand million $ down another sink - this time German aid to Russia. Insiders estimate, that only 10% of Western aid to Russia reaches its targets. How Germany projected (once again in history) in vain her dreams to become a 'Weltmacht' (world power) is to be judged from the fact, that a country with the mere population size of Mexico and a share in world GNP of only 8.1% took over 43.7% of the burden of reconstruction of former communism - from Frankfurt at the Oder to Wladiwostock during the period 1990-1993. Germany's official and private flows amounted to 32.7 thousand million $, out of a total of 74.8 thousand million $ (our own compilations from OECD, GD (95) 41: 'Aid and other resource flows to the Central and Eastern European countries and the new independent states of the former Soviet Union in 1992 and 1993', Paris 1995). But the foundations of Germany's dreams to become a Weltmacht are shaky indeed, as the meagre position of Germany's transnational corporations vis-à-vis their international competitors, and the losses of even companies like Mercedes-Daimler-Benz to the tune of more than 1 thousand million $ and the recent strikes at Volkswagen, Wolfsburg, all too clearly show. For the transformation countries nearer to the European centre, such economic mismanagement means lost opportunities to stabilise democracy at a vital moment of world history: the Polish GNP amounted to just 75 thousand million $ in 1992 (UNDP, 1995; Malcolm, 1995). Germany with its current account balance of just + 2327 million $ in 1994 is in a too weak position to be the European 'growth engine' anymore:

Graph 8.1: current account balances in the world system, 1994, in millions of $

Current Account Balances above + 10000 million $ and below - 10000 million $, 1994. Compiled from Fischer Weltalmanach, 1996

Regional concentration in the West of Eastern Europe should have been the aim of G-24-aid to Eastern Europe from the outset. Limited resources allow only limited aid activities. Economic stagnation and unemployment will significantly rise due to rent-seeking that is enhanced by the way European institutions are built at the present. In terms of the environment, government subventions to declining productive branches will increase technological backwardness and preserve transport intensity, and hence, pollution. Economic inequalities threaten to increase with such a structure, and in turn will form a block of its own against world economic ascent. The expenditure for research and development in the Union budget 1994 was just 3.6%; general and professional education received only 0.8% of the total Union expenditures; the energy sector, EURATOM and the environment another meagre 0.2%; while expenditure for agricultural subventions consumes 53.5%, and structural policies for regions, for agriculture, traffic systems and fisheries another 30.7% of the total budget (our own compilations from Fischer Weltalmanach, 1995). Not only the internal problematic needs urgent reform, also the relationship to the outside world.

Inexorably, the centres of gravity of the world economy are shifting towards the LDCs, here most notably the countries of the Pacific. Graph 8.2 shows the tendencies of world-wide investment from the end of the last Kondratieff cycle onwards, while Graph 8.3 projects these data up to the year 2000:

Graph 8.2: the world-wide recipients of transnational investment, 1984 - 1995



Graph 8.3: projections of the inflows of world-wide investments until 2000


Graph 8.4: Triad fortresses? The share of intra-regional trade, trade with the other parts of the triad and with the rest of the world in a time-perspective


Graph 8.4: for the world economy, triad protectionism indeed might be an abyss...


Legend: our own calculations and projections from Stiftung Entwicklung, 1996, and Hallett, 1994

The effect of the Europe-agreements between the EU and the countries of Eastern Europe seem to repeat the experience of Lomé and can be summarised in one word: a massive positive balance of trade in favour of the Union and to the detriment of the partners in the East, that leads to political and economic friction (Hickman, 1994; Inotai, 1993). It is shown in this chapter, that Lomé indeed is such a negative experience on the level of the LDCs. A growing number of academic critics of present Union economic policy maintain that the EU-approach to foreign trade and relations with the semi-periphery and the periphery is based on two fatally erroneous assumptions. First, the gradualism of trade liberalisation; second, the protectionist answer to the current economic malaise in Western Europe. The transformation process of the East would be supported efficiently only, if the East could expand rapidly its exports in those areas where the East has a comparative advantage - agriculture, steel, textiles and clothing. But precisely such sectors are protected by the EU. The agreements reached up to now reflect the outdated and orthodox EU trade policy, designed in the late 1950s. The situation of the East is made all the more difficult, because there is no Western European willingness to make major concessions in other areas, most notably migration, partly a consequence of deteriorating external economic relations, partly a consequence of rising internal inequalities.

Samir Amin (1994) puts a heavy blame on the Europeans for prolonging the underdevelopment and stagnation of their own 'backyards'. A look at the UNDP 1996 data about the European inner and outer periphery in comparison to the European leading economy Germany confirms this dire hypothesis. Germany is under a desperate pressure to redress the negative current account balance, and to have high export surpluses again:

Sub-Sah- Arab Eastern Germany

ran Africa States Europe

+ CIS

life expectancy 50.9 62.1 69.2 76.1

real GDP in $ PPP 1288 4513 4164 18840

human development index 0.379 0.633 0.773 0.920

gender related devel. index 0.366 0.513 - 0.883

gender empowerment index 0.366 0.513 - 0.654

millions without health s. 205 36 - -

illiterate adults in millions 121 59 2 -

million malnourished chil-

dren under 5 years 22,5 3,1 0,475 -

% low birth-weight infants 16% 12% 7% -

terms of trade 90 98 99 100

current account balance be-

fore official transfers in

millions of $ -8022 -10937 -12413 -1222

arms exports/imports in

millions of $ - -3844 -59 +462

government consumption 18% 25% 18% 20%

Source: our own compilations from UNDP, 1996

But what, then, Eastern Europeans should do? Western Europe's barriers to Eastern trade will only increase the pressure towards migration, towards the 'second economy' and towards political instability in the East.

The experience of East and Southeast Asia has precisely shown, that ceteris paribus three conditions for successful capitalist development now hold (i) the existence of a reliable anchor economy (ii) substantial net transfers (iii) free market access to exports (Inotai, 1993). The failure to realise such a strategy vis-à-vis the CEFTA-countries results in the growing trade balance problems of the transformation region (Hickman, 1994). By enlarging the Union to the South, the protective tendencies precisely in those sectors, which are also important for the semi-periphery and the periphery, have grown. The effect of this is a growing world economic inefficiency (Nuscheler, 1993). The most visible result of this is the high unemployment in many Union countries at the beginning of the 1990s: in 1993, France had a 11.6% unemployment rate; Finland 17.7%; Denmark 12.4%; Ireland 15.6%; Italy 11.5%; Spain 22.6%. The entire European Union now has over 17.3 million people out of work (10.9% unemployment rate); in Eastern Europe, willing to join the Union early on, another 6.6 million unemployed persons would have to be provided with jobs, if the foreign policy objective of the eastward expansion of the Union should become in any way realistic. The recent new Union members, Austria, Finland and Sweden, which joined the Union on January 1st 1995, are not free from employment problems themselves and have to adapt to the new Europe with a stock of 932000 unemployed persons, that is to say, almost another million, within their own borders. Most notably, unemployment in Finland is very high and reaches 17.7%. To put the proportions of unemployment in even more drastic words: the unemployed workers of the EU - excluding their families - would already be the 6th biggest state in the Union - bigger than the 10 smaller European Union countries. The unemployed workforce in the former GDR is still excluded from most international statistics, so that in reality, the country of the EU-unemployed would be still having more inhabitants.

Including the GDR-unemployed, and including the families of the unemployed workers, the up to 40 million persons, affected by unemployment, probably would form the 5th biggest state in Western Europe, only surpassed in size by Germany, the UK, France, and Italy. With around 40 million inhabitants like Spain, this 'country' should play a major role in the EU and should one day be in a position to take up at least the EU-Presidency...

To expect, that a further rapid expansion of the European Union would solve even only half the problems that it will create, is already an illusion: the developing world made important headway in social performance over the last 30 years and some countries have now absolutely overtaken Eastern Europe regarding the human development index. Israel, Hong Kong, South Korea, Uruguay, Trinidad, Bahamas, Argentina, Costa Rica, and Malta have a better human development index value than Portugal, the poorest European Union country in terms of human development; these Third World countries together with Singapore, Brunei, Venezuela, and Panama are socially more advanced than Bulgaria and Poland according to the HDI-index. Colombia, Kuwait, Mexico, Thailand, Antigua, Qatar, Malaysia, Bahrain, Fiji, Mauritius, the United Arab Emirates, Brazil, Dominica, Jamaica, Saudi Arabia, Saint Vincent, Saint Kitts could claim to become a member of the European Union with pretty much the same human development index justification - or even a superior one - than Romania; and Syria and Ecuador rank higher on the HDI-index than Albania, number 76 in the 173 nation list, calculated by the UNDP in 1994. Thus, the poverty curtain, now separating Europe, is as high in terms of the human development index as in the case of other pairs of developed and developing contiguous countries in the world system. San Diego is everywhere, San Diego is the future of Europe, and especially Frankfurt at the Oder, Goerlitz and Drasenhofen will become the European San Diego, once the Schengen accords become full reality.

Globalisation affects to a differing degree the 20 most developed and still relatively stable long-term democracies of the world, Sweden, Israel, Iceland, Finland, Belgium, Denmark, Ireland, Austria, New Zealand, Norway, Australia, Italy, the UK, Germany, the Netherlands, Switzerland, Canada, Japan, France, and the United States of America. Of course, the term 'stable democracy' is only relative, since the increase of new populist or neo-fascist parties in Europe is a significant phenomenon, while old parties disappear. On average, populists drum up 7.4% of West European votes; neo-fascists 2.2%. Countries with well-known populist phenomena are Austria (23%), Denmark (16%), Italy (21%) and Norway and France (both at 12%), while neo-fascists are strongest in Italy (14%) (Taggart, 1995: 45).

The efficiency of the European Union at the level of 20 stable western democracies

We now start our multivariate analysis of the basic problems of the European Union (as to the variables used, see Appendix, Variable List). The basic equation, already described in Chapter 2 of this study, can be expanded in the following fashion:

(7.1) stagnation and development blocks in western democracies (lack of economic growth; inflation; lack of human development; unemployment) = constant + b1 * age of democracy + b2 * state sector influence (like state sector expenditures per GDP) + b3 * years of European Union membership (like state sector expenditures per GDP)

The empirical results show the alarming and significant effects of years of European membership on growth, inflation, human development and unemployment. Results, which are significant at the level of 10% (one-tailed t-test) are printed in bold type. The reform needs of the Union are omnipresent in the light of these politometric results for the 1980s and beyond. Each important economic performance indicator, growth, inflation, human development and unemployment, is influenced in a fatal and significant way by years of membership in the European Union. The longer you stay inside, the more rent-seeking, stagnant, inflation and unemployment-prone and the more lacking in terms of human development your economy and society could become in comparison to the other Western democracies:

(7.2) Growth, inflation, human development and unemployment. The effects of years of European union membership, age of democracy and central government expenditures

Dependent variable

Independent Variable growth inflation HDI unemployment

years of European -0.022 +0.68 -0.00 +0.16

Union membership (1.55) (1.59) (2.25) (1.91)

age of democracy -0.013 -0.22 +0.00 +0.06

(2.20) (1.25) (0.18) (1.69)

central government +0.003 -0.68 +0.00 +0.03

expenditures (0.35) (2.20) (0.13) (0.53)

_____________________________________________________________

constant 3.29 2.53 0.94 -0.52

statistical

indicators

R^2 29.4% 27.5% 30.9% 29.3%

F 2.22 2.03 2.39 2.21

df. 16 16 16 16

_______________________________________________________________

df. = 16; p < .05 = 1.746; p < .10 = 1.337. Significant coefficients at the 5% level are printed in bold type; significant coefficients at the 10% level are printed in bold indented type. Cells in parenthesis are t-values. UNDP data 1994

Government expenditures lose their significant negative effect on development indicators, once we introduce years of European Union membership into the equations. Years of Union membership significantly affect all four vital development indicators in a clear-cut and detrimental way. They decrease growth, human development, and they increase inflation and unemployment. The basic reason for such unpleasant results is the emergency support philosophy of the Commission, that strengthens euro-wide a rent-seeking mentality. The most important reason, why the North America-Pacific triangle is gaining ground in the world market is the pattern of specialisation based on co-operation with less-developed partners that significantly cuts production costs (Inotai, 1993).

Globalisation, East European reconstruction and the fatal conceit of euro-centrism

The most basic process of change in our time is the shift of gravity in the world economy away from the old industrial regions of Europe towards the Pacific. 29 countries with a Pacific coast now already control over 53% of the world GNP, and the Pacific rim-lands tend to be the countries with the highest growth-rates in the world economy.

This 'earthquake' has set free powerful forces of change on the European landmass, both East and west of the Iron Curtain, while the power of the world depression during the 1980s and beyond brought new centres of gravity of the world economy to the fore. At the same time and by the very same process, the new international division of labour restructures the old industrial centres and creates new conflicts. The share of the industrial labour force in total employment in East Asia (excluding China) is now 34% and is thus higher than in the established industrial countries.

The moment of victory over communism in Europe becomes the moment of the fundamental weakness of both Europe and North America in a changing world economy. The current account balance of the European Union in 1992 was - 42.9 thousand million $, that of Canada and the United States - 70.4 thousand million $, while Japan, Hong Kong, Singapore and China achieved a joint surplus of + 132.6 thousand million $ during the same year (our own compilations from UNDP, 1995). Faced with a growing trilateral competition between economic power blocs (Japan + Pacific/USA/Europe), that could even one day become a bilateral competition between the Pacific and an expanded Europe, the danger arises, that the losers in the trilateral economic power struggle are unable to provide their 'spheres of influence' with the kind of advantageous economic relationships, that would be necessary to be able to break the deadlock of semi-peripherisation and partial underdevelopment in regions like Latin America, Africa and Eastern Europe. Mexico and Argentina alone now have a joint negative current account balance of 31.3 thousand million $, while Sub-Saharan Africa and Eastern Europe and the former USSR, the main peripheries and semi-peripheries in the European orbit, had to suffer a combined negative current balance of 17.9 thousand million $. For Europe, faced with the danger to fall behind, the temptation is great to increase unequal exchange with its own 'backyard' in Africa and Eastern Europe (Amin, 1994). Even Germany, the biggest economy in Europe, had a negative current account balance to the tune of - 1.2 thousand million $ in 1992, a far shot away from 1988, the year before the Berlin Wall fell, when the then old Federal Germany had still a surplus of 60.3 thousand million $. These data also testify to the economic decline of Europe in general, whose leading economy should be expected at least to have large current account balance surplus, if the project of a future strong role of Europe in the world economy were to be realistic in any way.

If we roughly divide the world market into the following zones with available UNDP data for 1992 (UNDP, 1995):

European Union

NAFTA (USA, Canada, Mexico)

Central Eastern Europe (Poland, Czech Republic, Slovakia, Hungary, Slovenia)

Russia

Japanese co-prosperity zone (Japan, China, Singapore, Hong Kong, South Korea)

Rest of the world economy

we again grasp the total uselessness of an exclusively 'Eastern' option for the new democracies of Eastern Europe. Even an exclusively West European option is doomed to failure, because in between them, NAFTA and the Japanese co-prosperity zone partition already more than half of the world market. To this we must add the march of the Japanese multinational corporations and multinational banks towards control of large sections of the most dynamic industries around the globe and their success in those 14% of the 'rest' of the world economy that comprises huge markets like Brazil (432.2 thousand million $, thus greater than Russia's 418 thousand million $), Argentina (205.9 thousand million $), and India (274.2 thousand million $). Germany, the main anchor economy of Eastern European transformation, has an approximate share of only 8% in total world product.

In the transformation countries themselves, Poland, Romania and Russia were among the main losers of international exchange. The negative trends in the current account balance continued after 1992 especially in Poland and in Hungary. In the Czech Republic, too, the world economic tide of current account development seems to have turned definitely against the new democracy. According to our calculations on the basis of recent estimates and projections by the country risk department of Austria's largest bank, Bank Austria (East-West-Report, August 1995), Poland, Slovenia, Slovakia, the Czech Republic and Hungary, the most hopeful candidates for European Union membership and democratic stabilisation, will have lost 12.9 thousand million $ on their current account balance from 1992 onwards through to the end of 1995.

In studies published as far back as 1991, it could be shown that for the political project of a united Europe that is economically under the leadership of Germany, many dangers could arise out of such a constellation (Balibar, 1991; Tausch, 1991a). The capitalist world economy, we have already remarked above, is seen to be of a cyclical nature, and in the depressive B-phases of the world economy, under the weight of the world depressions, there have always been reform attempts in Russia and in Eastern Europe going all the way back to the times of Boris Godunow. Since the Nordic War of 1700 such periods always were German-Russian alliances. But whenever there was an upswing in the world economy, and the Russian regimes hardened - as could be observed in all world economic upswings - these alliances between Russia and Germany, that were a result of the depression, broke apart, with Germany and Russia clashing over their respective spheres of influence in Eastern Europe.

Secular negative trends in the current account balances of nations are seen to be very strong motivations for international conflict. The rise of nationalism, anti-Westernism and anti-Germanism could receive a powerful ammunition by the ongoing post-transformation economic performance of the reform countries of Eastern Europe, dominated by the inability to find a (legal) export-oriented growth model, which is the underlying cause of the official negative current account balance. The balance of trade of the reform countries will be by the end of 1995:

Table 7.1: trade balances in Eastern Europe

a) 1995

Poland - 4000 million $

Slovakia - 800 million $

Slovenia - 500 million $

Czech Republic - 4000 million $

Hungary - 3270 million $

Total - 12570 million $

All too often, the shadow economy balances such trends. From 1992 onwards through to the end of 1995, these 5 transformation countries will have a cumulative trade balance of 33.5 thousand million $. No tigers are thus in sight in this part of the world.

The present author agrees with the general perspective, provided by students of the present international political economy, like Joshua Goldstein: the underlying logic of the capitalist world economy is a logic of conflict, intrinsically linked to the mechanisms of unequal exchange between the power centres of the world economy, and if the next 25 years are not being used for the creation of durable peace on earth, we could be threatened by a repetition of the same long-term cataclysms, that already led to the Thirty Years War, the Napoleonic Wars and the World Wars of this century.

Even the integration of the 'Near European East' - that is to say, the Czech Republic, Poland, Slovakia, Hungary and Slovenia, will be a painful process. For a long time to come, the balance of trade and the balance on current account will be negative, a powerful force in the motivation of economic and political nationalism against the West. The 'extractive economy' (Tausch and Prager, 1993) is a term used to describe a situation, when exorbitant energy consumption is used to produce a shrinking or stagnating, or at least not very rapidly growing amount of welfare. Our hypothesis is that Poland and other former or continuously communist countries play precisely such an 'extractive role' in the emerging cycle of the world economy.

The East, unable to reap the benefits of technical progress and being forced to export what there is, is thrown back to the old patterns of the extractive economy. No major advances in the energy/income balance are in sight. We witness a heavy or even increased reliance of the export sector on the extractive branches of the economy, and the inability to change the price mechanism, partially because losses in the terms of trade and the 'scissors' of lagging (legal) exports and rising imports dictate that the urban and rural poor cannot pay higher energy bills. The result is one more reason for the rising tide of nationalism:

Table 7.2: The extractive economy on a world scale. Poland by international comparison

Economic region Energy consumption in kg oil

equivalent per 100 $ GDP

1965 1991

-----------------------------------------------------------

World - 36

All developing countries 142 80

among them:

Sub-Saharan Africa 166 59

Latin America + Car. 119 43

China 195 187

Algeria - 154

Industrial Countries - 27

among them:

North America 180 36

Japan 145 13

EU 165 19

Poland - 155

Bulgaria - 403

Romania - 254

_____________________________________________________________

Source: our own compilations from UNDP, 1995

Research and technology should be at the centre of the development path, together with savings creation and (legal) exports. Savings and (legal) exports in Eastern Europe are small compared to the 'tigers' of Asia. Poland, whose struggle contributed so much to the downfall of communism, found itself left alone in a peripheral position in the hour of victory. This is at least, what nationalists will assert, and hard economic and social data about societal development in the post-1989 world unfortunately have to support their lamentable assertion.

9) Transnational Integration and National Disintegration - A Synthesis

Arrighi wrote in (1995):

'Partial as the current revival of a self-regulating world market has actually been, it has already issued unbearable verdicts. Entire communities, countries, even continents, as in the case of sub-Saharan Africa, have been declared 'redundant', superfluous to the changing economy of capital accumulation on a world scale. Combined with the collapse of the world power and territorial empire of the USSR, the unplugging of these 'redundant' communities and locales from the world supply system has triggered innumerable, mostly violent feuds over 'who is more superfluous than whom', or, more simply, over the appropriation of resources that were made absolutely scarce by the unplugging' (Arrighi, 1995: 330)

On the other hand, it is clear that nations like


Cyprus, South Korea, Singapore, Antigua, Thailand, Malaysia, Mauritius, Botswana, Saint Vincent, Suriname, Turkey, Indonesia, China, the Solomon Islands, Pakistan, India, Bhutan, and Chad

had a GNP growth rate of 5% or more per annum during 1980-93. What tendencies, then, do emerge from the multivariate analysis of international development in the post-1980/1989 world in 134 countries with fairly consistent and complete data?

First, we mention our database:

Final model: the database

% labor force participation ratio (UNDP, 1996)

% of the labour force in agriculture (UNDP, 1996; Fischer Weltalmanach, 1996)

% of the labour force in industry (see: labour force agriculture)

absolute GNP (UNDP, 1996)

agricultural share in GDP (UNDP, 1996; Fischer Weltalmanach, 1996)

average population growth (UNDP, 1996)

economic growth 80-93, p.c. and year (UNDP, 1996)

EU membership years (Fischer Weltalmanach, 1995, 1996)

FDI per GDP (UNCTAD, 1996; Business Central Europe, 1996)

human development index (UNDP)

inflation 93 (UNDP, 1996)

main telephone lines per 100 population (UNDP, 1996)

mean years of schooling, population aged >25y

military expenditures per GDP (UNDP, 1996)

state sector size (government expenditures per GDP; UNDP 1996; Weltalmanach, 1995, 1996; World Resources Institute)

structural heterogeneity (labour force share in agriculture divided by product share of agriculture; see labour force data)

total fertility rate (UNDP, 1996)

UN membership years (Weltalmanach, 1996, 1995)

violation of political rights (1, democracy, to 7, dictatorship) (Stiftung Entwicklung und Frieden, 1996, based on Freedom House)

violations of civil rights (see political rights)

years of communist rule (Autorenkollektiv; Weltalmanach)

The variables of the final model:

absolute GNP
growth 80-93
inflation 93
FDI per GDP
UN membership years
mean years of schooling
absolute GNP
FDI per GDP
Years of Communist Rule
population growth
state sector size
% labor force participation
% labour force agric.
% lf industry
agr. share in GNP
MILEX
HDI
violation of political rights
violation of human rights

Is Arrighi's hypothesis about the 'deregulatory logic' of post-1980 capitalism confirmed by the data? Under inclusion of the world of former 'real' socialism, the curve-linear effect of the development level on subsequent economic growth is partially taken over by variables, pertaining to the employment structure. Again, only the statistically significant effects, that cannot be explained by simple random, are being taken into account. Countries with a large labour force participation ratio, and hence, a relatively smaller industrial de-facto reserve army of employment, grow slower than countries at the middle income level with a still larger industrial reserve army outside agriculture and a relatively abundant supply of labour on the labour market. Our results from Chapter 4 about the (female) reserve army are again confirmed here, now on a more general level. One plausible reason for this shift in predictive power away from the Matthew's effect to the employment structure is the still preliminary character of income data from Eastern Europe. Wage flexibility in the urban sector seems to be another of the main underlying processes here. But on the other hand, predominantly rural societies at the present stage of globalization are being negatively affected by the ongoing urban bias in world development. Hence also the negative effect of agricultural employment on growth. The international system indeed seems to work like a single, huge, distribution coalition. Economic growth disproportionately favours countries with a long-established record of UN-membership. Participation in the distribution coalition allows for a better access to the distributed goods, while the predominantly rural societies of the 'Fourth' and 'Fifth' World are being excluded from the benefits.

The human capital effort indeed pays off in terms of economic growth, and also state sector size affects growth in a way, as predicted by conventional economic theory. The size of the military sector significantly and negative affects economic growth. Again, our results from Chapter 4 are confirmed here.

Former communist countries often stagnate, because their human capital effort is too low, because their state is still too big, because their wage flexibility is too low, because their military burden rate is still too high, and because their rural populations are being discriminated against. But per se, the tendencies of world society after 1980 during the new cyclical set-up seem to suggest, that a world political experience as a former communist nation does not block against subsequent economic growth. Also, the argument, that smaller nations with a low absolute GNP find it more difficult in world society, does not apply anymore, when we look into the whole set of determining conditions for 134 capitalist and post-communist societies in the world. By contrast: absolute market size is not a precondition of subsequent economic growth anymore, as successful island nations like Mauritius, show impressively. Our equation determines 46.6% of economic growth from 1980 onwards; the F-statistic for the whole equation is 8.05, with 120 degrees of freedom.

Human development, on the other hand, is positively determined by a high agricultural share, and hence the absence of what Michael Lipton once called the 'urban bias of world development' is being negatively determined by a high ratio of foreign direct investment penetration. These two statements are very well compatible with the essence of dependency theories. A development, that is dependent to a large extent on foreign capital, is socially polarising and regionally exclusive. The rural regions stagnate relatively, while the rich urban centres are receiving disproportionate shares of the newly created wealth. But ceteris paribus, it also emerges, that the human capital formation effort (mean years of schooling) is negatively related to the human development index, mainly because highly repressive totalitarian communist regimes - in the past - had a relatively good quantitative record in the education sector, that was connected with severe deficits in other areas of social policy.

GROWTH
10,2130,27658 -0,0449-0,0038 0,046830,04623 -0,0412-0,9458 -0,0299-0,0034 1E-04-0,372 -0,0035-4,1729
2,444840,09678 0,025560,03757 0,020020,03517 0,016610,25246 0,012130,01112 0,00030,13 0,014063,1815
0,466
8,04862120
4,1772,858 -1,755-0,1006 2,3391,31457 -2,481-3,746 -2,463-0,308 0,33523-2,861 -0,2517
UN memb.ymean y scho absoluteGNP FDI per GDPYears of Comm population grstate sector %labor force %lf agric.%lf industry agr.shareGPMILEX HDIconstant
HUMAN DEVELOPMENT
UN memb.ymean y scho absoluteGNPFDI per GDP Years of Commpopulation gr state sector%labor force %lf agric.%lf industry agr.shareGPMILEX
-0,0017-0,0042 -6E-05-0,003 -0,0018-0,0002 -0,01340,00027 0,00053-7E-06 0,02086-0,0001 0,86611
0,00360,00087 0,00140,00069 0,00130,00062 0,009310,00045 0,000411,1E-05 0,004450,00052 0,08829
0,88
74,1983121
-0,4828-4,78 -0,0435-4,383 -1,3488-0,3169 -1,43430,59058 1,29988-0,6638 4,691-0,2103
UN memb.ymean y scho absoluteGNPFDI per GDP Years of Commpopulation gr state sector%labor force %lf agric.%lf industry agr.shareGP MILEX
mean y scho absoluteGNP FDI per GDP Years of Comm population gr state sector viol hum rites %lf agric. %lf industry agr.shareGP MILEX
employm -0,9723 -0,20630,06753 0,13692 2,146960,05062 1,33109 -0,2628-0,2096 4,1E-05 2,0706718,7369
0,63941 0,14877 0,23910,11011 1,10838 0,105711,61876 0,07624 0,067680,00188 0,73014 12,7789
0,293
4,60169 122
-1,5206 -1,387 0,282441,2435 1,93703 0,478870,82229 -3,4465 -3,0963 0,02195 2,836
mean y scho absoluteGNP FDI per GDP Years of Comm population gr state sector viol hum rites %lf agric. %lf industry agr.shareGP MILEX

Source: our EXCEL 5.0 calculations from UNDP and other data sources, quoted above. As to the footnotes about the outprint, see Chapter 4.

In terms of employment policy and labour force participation rates, Europe is not in a very lucky constellation right now: low population growth, high overall educational levels, combined with a high employment share of industry and a run-down of military expenditures all would suggest a still future lowering of the labour force participation rates, while in some European countries there is still a high agricultural employment share, which works as an additional constraint against a higher labour force participation ratio.

Europe thus faces three very important decisions about the future: east-ward expansion of the European Union, European monetary union, and the structural internal reform of the Union. Faced with these decisions, an intellectual battle rages across the continent between euro-sceptics and integrationists, between federalists and nationalists, between centralists and regionalists. World systems research and development research provides radical, fascinating and novel answers to these old controversies.

What is the evidence of cross-national quantitative research?

(i) The process of globalisation did not level-off the differences in wealth and well-being between the different regions of the world, especially between Europe and the Mediterranean southern periphery of Europe. Far from granting a real free trade regime, Europe has petrified existing patterns of the division of labour between the centres and the peripheries. Poverty, unemployment, homelessness and other negative social phenomena become more and more relevant, not just for periphery and semi-periphery countries, but for the former centres in Europe themselves. We are evidencing a peripherization of the European landmass, while the countries of the Western Pacific and the Eastern Indian Ocean are the future centres of world capitalist development.

(ii) Europe is characterized by the very mix of conditions, which, on a world-wide scale, block against rapid economic growth. Too little national savings, privileged home-markets for idle and saturated European transnational corporations and the European continental powerful banks, migration instead of innovation, excessive government consumption, political distribution coalitions - also regarding gender conflict lines - which try to get via political means what they cannot achieve on the world markets anymore, the continued practising of traditional patterns of national defence, based on conscription, are precisely the mix that explains 44.2% of stagnation from 1980 world-wide, without resorting to capital investments and other intra-economic explanations of growth. The 134 nation study on growth in world society, mentioned above, again underlines these points. What would be the answer against this process what in the Dutch languages has been so aptly termed as Verluderung?

A slim, socially just state, which enhances savings, deters distribution coalitions, subjects the European transnationals to the discipline of the market, instead of pouring down the sink billions of ECU's in terms of subvention money, ending up more often than not in the pockets of the shadow economists of our times, would be among the pre-requisites of a real reform of the European Union member states and an adequate answer to the question about the place of Europe in the world. 15 of the most important 19 development dimensions in the world system are being negatively determined nowadays by MNC penetration. The capitalist world economy is in addition characterized by strong 20 year cycles (Kuznets cycles) and 50-60 year longer waves (Kondratieff waves), which again are shown to be relevant in this work on the basis of new calculations, based on Joshua Goldstein's previous research. They, and not so much grand designs of conference diplomacy, will determine the future place of Europe in the world economy. Precisely, because the Union is presently a protective club shielding away market influences from European transnationals, banks, and distribution coalitionists, Europe's upswing is belated, and the Maastricht-induced stagflation threatening to coincide with the next major Kuznets cycle trough, to be expected in 2002 or 2003, will make our stagnation even worse. Political stability, under such circumstances, in the Mediterranean and in other countries becomes a question mark. European foreign policy, blinded by the fall of the Berlin Wall in 1989, overlooks the intrinsic conflict structure of the world economy, that is shaped like a 'W' and that threatens future intensified conflicts on the borderlines of world instability.

(iii) Subventions, mass migration and distribution coalitions mean structural conservation and environmental decay at the same time. Since environmental strain cycles coincide with world economic swings, it is to be expected that any real future European recovery will increase the environmental problems on the European continent, still increased by the transport-intensity of EU-development patterns, connected with the subvention system. Physical mobility of labour is the key de-facto concept of the past policies of the Commission in Brussels, while information mobility is being hindered by local and national telephone monopolies, and the absence of privatisation in transport, especially roads.

(iv) The eastward expansion of the Union will have to face up to the dilemmas of modernization in the environment of past rapid urbanisation (what world system scholars have termed the urban bias in world development), little efficient state-directed mass communication and belated demographic transitions in much of the Balkans and the former Soviet Union, if not the former Warsaw Pact in general. Modernization and structural adjustment in the post-1989 set-up is bound to fail in the East if it is not accompanied by a massive real inflow of foreign resources. The semi-democratization in much of the region, that set in after 1989, from the viewpoint of political stability, is much more dangerous than the full rule dictatorship or full democracy. Money laundering and fluctuations in the terms of trade are additional important determinants of the growth prospects of the reform countries.

(v) Modernization, globalization, and East-ward expansion of the Union might increase existing cleavages in the countries of the East, if they are not accompanied by a deep structural change in favour of the up to now underprivileged sectors and strata. Many of the lessons of neo-classical economists about Southeast-Asia can be repeated here in an East European context. The discrimination against exports by import substitution strategies, effective currency overvaluations, privileges and wage inflexibility in the monopolistic sectors, and finally and overarching all these phenomena, a conspicuous contempt of urban elites against the countryside and a deep urban bias of development have created a structure, where the political and social divisions between the different parts of countries have increased. It is shown in this study with regional multivariate analyses from Polish election data 1993 and 1995, that electoral results are heavily determined by these regional and world economic aspects, while other theories fail to capture the dynamics of socio-political cleavages in the new democracies of the East.

(vi) Euro-sclerosis at the heart of the Union of presently 15 nations is a reality. Take any indicator of economic illness in the relatively stable Western democracies today - unemployment, lack of economic growth, insufficient human development: it will be neatly determined by just three variables:

- age of democracy within world politically guaranteed boundaries

- size of the state sector, like central government expenditures per GDP

- years of membership in the European Union

Instead of causing stable long-term economic growth, the Union rather causes what might be termed 'the Belgium syndrome'. Relatively young democracies, like Poland or the Czech Republic, Hungary or Slovenia, will still benefit for a few years from the positive effects of early membership; but the positive initial effects will disappear with the workings of the really existing Union in the long run.

So, what then is the prescription? For Arrighi (1995), there seems to emerge the imperative of organizing the international community anew around the dynamic axis of the East Asian/North American archipellago, implicitly hoping for democratization spin-offs along this dynamic axis. The Japanese trasnational bank and the Japanese transnational corporation overseas seem to be the most dynamic element of world capitalism nowadays. Arrighi seems to advance the viewpoint that such a 'world community' controlled capitalism would still be better than the rule of chaos and war. For us, Europeans, the lectures of the empirical study of contemporary changes in world capitalism are twofold: one is more medium-term, the other long-term: the upgrading of the European Parliament ('no taxation without representation'), a more slender and socially just state in the member countries, free trade, again and again, and also more decisive efforts in human capital formation (in the framework of privatisation of Universities and other institutions of higher learning) would be a proper European step in the right direction in the short-and medium term. To learn form the East Asian Space-of Flows (Arrighi, 1995) above all suggests that heeding the advice of contemporary economics, learning its lessons from East Asia in such areas as corporate strategy, labour market organization, international trade and migration, would be more advantageous than to be trapped again by the fatal conceit of a thinking along the lines of the territorial control, the Lebensraum. And Germany, in particular, at the decisive time, seems to forget that the main imperatives of world system ascent are economic and not territorial - now in the wider, European Union sense. Such advice unheeded, eastward European Union expansion could dismally fail, made all the worse by the negative effects of ongoing Maastricht austerity. Thus the time is ripe for a socio-liberal alternative to orthodox etatism and neo-conservatism alike.

On a long-term basis, though, only a socio-liberal world state will be able to overcome the intrinsic instabilities of the capitalist nation system, that has (un)governed the world since 1450. Today's problems are too global to be left to a (supra)national state. And at any rate, transnational capitalism rings the bell to all attempts at national regulation for the next 50 or 100 years. So, our predictions for Europe are dire: Sunkel's scenario, at least in part, offers a key to our future. Capitalist globalization can only be answered by global democratisation strategy.





Appendix

Samples and data

List of variables

The general model

Indicators of globalisation:

aid dependency (UNDP, 1994) net per capita aid in $. Donor countries are listed according to their donations per capita and are recorded as (-)

export processing zones (Bailey et al., 1993). The variable codes the number of export processing zones per country at the beginning of the 1990s

migration dependency (UNDP, 1993) net worker remittances per GNP/GDP at the beginning of the 1990s

MNC penetration index: penetration by transnational capital, weighted by population and capital stock, mid-1970s (Bornschier/Heintz, 1979, based on OECD)

share of outward FDI stock in gross domestic product in 1985 (UNCTAD, 1996. For a very small number of countries, regional averages had to be taken to substitute for the few, missing values)

terms of trade index 1987-90 (UNDP, 1994, Weltalmanach, 1994, based on UN)

trade dependency index: exports plus imports as % of GDP 1990 (UNDP, 1993/94)

vulnerability of a nation in terms of the expansion of the new international division of labour, 1990 (share of women in the national labour force) (UNDP, 1993/94)


Indicators for the institutional environment:

ethno-linguistic fractionalisation index, mid-1960s (Bornschier/Heintz, 1979, based on Taylor/Hudson). Ethnic discrimination is thought to be the purest form of a 'distribution coalition'

government consumption per GDP, 1990 (UNDP, 1993/94)

government expenditures per GNP, 1991 (UNDP, 1993/94; UNICEF, Regional Monitoring Report, 1, 11, 1993, see Cornia, 1993; World Resources Research Institute)

public investment in the preceding Kondratieff cycle (Bornschier/Heintz)

total area in thousands of square kilometres (World Bank, WDR, 1994. This variable measures the role, that territory and resources could play for attracting foreign capital)

violation of civil rights, 1991 (Stiftung, 1993/94, based on Freedom House, combining freedom of religion, the press, freedom of assembly and association, freedom of trade unions, the right to property and equality before the law)

violation of political rights index, 1991 (Stiftung, 1993/94, based on Freedom House, combining free elections, role of the elected parliament in political decision making, party competition, protection of minorities)

world political threats to a country, to be measured by the percentage of armed forces per population. Some neo-liberals maintain that world political threats increase the growth potential of a nation. Due to the skewness of the indicator, the natural logarithm ln (MPR+1) has to be taken (calculated from UNDP, 1993/94; see also: Weede, 1985)

years of membership in the United Nations (coded from Weltalmanach, 1995)


Indicators for the social policy approach:

human development index (UNDP, 1994) as an indicator for the quality of past social policy

increase/decrease of fertility rates 1960-90 (UNDP, 1993/94)

life expectancy at birth as an indicator for the quality of past social policy, 1990 (UNDP, 1993/94 and World Bank, WDR, 1994)

share of women in the membership of national legislature (lower house) (UNDP, 1993/94)

social security benefits expenditure as % of GDP in the era of the evolving contemporary Kondratieff cycle, 1985-90 (UNDP, 1994). Social security benefits expenditures include here the compensations for the loss of income for the sick and the temporarily disabled; payments to the elderly, the permanently disabled and the unemployed; they also include family, maternity and child allowances and the cost of welfare services. The UNDP data collection is based on ILO sources

total fertility rate (most recent estimate) (UNDP, 1993/94)

total number of inhabitants, divided by the surface area of a country (population density). Due to the skewness of the indicator, the squared root (population density^.50) had to be taken (calculated from UNDP, 1993/94)

violation of civil rights, 1991 (Stiftung, 1993/94, based on Freedom House)

violation of political rights index, 1991 (Stiftung, 1993/94, based on Freedom House)

The dependent variables of the general model


adjustment 1965/80-90/93(calculated from UNDP, 1993/94/96) - dimension growth

capability poverty measure (CPM-value) (UNDP, 1996. The measure weights unattended births, underweight children, and female illiteracy. It is regarded by the UNDP as a direct measure of absolute poverty)

deforestation rate (UNDP, 1993-95; World Bank, 1995; World Resources Research Institute). The index measures annual rates of deforestation in the 1980s in %. Because of missing data, a number of countries had to be coded by the LDC average or the OECD average

destabilisation index (coded according to Weltalmanach, 1995. The indicator codes all those countries as '1' (destabilised), that have entries about serious armed internal or external conflict in 1994. The rest is coded as '0'

employment (UNDP, 1994) labour force as % of total population

ethno-warfare (Gurr, 1994) magnitude of ethno-political conflict. The scores are country sums of the squared roots of the deaths (in 10s of thousands) from ethno-political conflict 1993-94 plus refugees (in 100s of thousands). Countries with no entries according to Gurr's main research results, 1994, are coded as '0'

forest area per total land area (UNDP, 1993-95). In contrast to the above indicator, that measures flows, this measure rather captures stocks of already existent forest destruction. Agricultural land per total land area has to be taken into consideration as an independent variable, because else the regression equations would be biased by a desert-factor

gender empowerment measure (UNDP, 1995. The index weights seats held by women in parliament, the percentage share of women and managers, the share of women in the professional and technical workforce, and the share of women in total earned income

gender-related development index (GDI) (UNDP, 1995) - dimension female life chances. This index was developed by the UNDP especially for the 1995 women's conference in Beijing. The index weights the share of earned income for females and males, the gender-specific life expectancies, the gender-specific adult literacy rates, and the gross primary, secondary and tertiary enrolment ratios. It ranges theoretically from 0.0 to 0.999, with Sweden (0.919) at the top of the international scale, and Afghanistan (0.169) at the bottom. Since there unfortunately no were no data for Dominica, Grenada, Antigua, Seychelles, Saint Lucia, Saint Vincent, Saint Kits, Belize, South Africa, Oman, Jordan, Gabon, Solomon Islands, Sao Tome, Congo, Rwanda, Bhutan, Angola, Mauritania, Somalia, Gambia, Germany and Israel, we had to substitute these missing values with averages for the socio-economic groups concerned: a) the industrialised democracies (gender development index average 0.87) b) developing countries with a Human Development Index above 0.6 (in our 123 nations analysis: Barbados to Tunisia, gender development index average 0.721) c) developing countries with a Human Development Index from 0.599 to 0.389 (Oman to Egypt, gender development index average 0,542) d) developing countries with a Human Development Index under 0.388 (except for the very least developed countries; Kenya to Sierra Leone; gender development index average 0.33) and e) the very least developed countries Benin, Guinea Bissau, Chad, Mali, Niger, Burkina Faso and Sierra Leone with a gender development index of 0.2. This procedure can be regarded only as a first approximation and should be substituted in future research

GNP per capita growth (1965-1980 and 1980-90/1980-92, 1980-93) (UNDP, 1993/94/95/96; Fischer Weltalmanach) - dimension growth

greenhouse index, 1989 (greenhouse index per 10 million people, UNDP, 1994. The greenhouse index measures the net emissions of three major greenhouse gases: carbon dioxide, methane and chlorofluorocarbons. The index weights each gas according to it's heattrapping quality in carbon dioxide equivalents and expresses them in metric tonnes of carbon per capita) - dimension environmental quality/degradation

human development index (HDI) (UNDP, 1994)

income distribution (Moaddel, 1994. The measure focuses on the share of the top 20% in total incomes in over 80 countries. Wherever possible, Moaddel's data were updated by World Bank WDR, 1994 and 1995)

increase in life expectancy 1960-90 (calculated from UNDP, 1993/94 via a regression procedure, predicting 1990 life expectancy on 1960 life expectancy, and then taking the residuals as growth rates) - dimension redistribution and human development

mean years of schooling of the population aged 25 and > (UNDP, 1993 and 1994)

violation of civil rights, 1991 (Stiftung, 1993/94, based on Freedom House) - dimension democracy

violation of political rights index, 1991 (Stiftung, 1993/94, based on Freedom House) - dimension democracy


The final model


% labor force participation ratio (UNDP, 1996)

% of the labour force in agriculture (UNDP, 1996; Fischer Weltalmanach, 1996)

% of the labour force in industry (see: labour force agriculture)

absolute GNP (UNDP, 1996)

agricultural share in GDP (UNDP, 1996; Fischer Weltalmanach, 1996)

average population growth (UNDP, 1996)

economic growth 80-93, pc. and year (UNDP, 1996)

EU membership years (Fischer Weltalmanach, 1995, 1996)

FDI per GDP (UNCTAD, 1996; Business Central Europe, 1996)

human development index (UNDP)

inflation 93 (UNDP, 1996)

main telephone lines per 100 population (UNDP, 1996)

mean years of schooling, population aged >25y

military expenditures per GDP (UNDP, 1996)

state sector size (gov. expenditures per GDP; UNDP 1996; Weltalmanach, 1995, 1996; World Resources Institute)

structural heterogeneity (labour force share in agriculture divided by product share of agriculture; see labour force data)

total fertility rate (UNDP, 1996)

UN membership years (Weltalmanach, 1996, 1995)

violation of political rights (1, democracy, to 7, dictatorship) (Stiftung Entwicklung und Frieden, 1996, based on Freedom House)

violations of civil rights (see political rights)

years of Commist Rule (Autorenkollektiv; Weltalmanach)

Data about the position of societies in the world system
Adjustment GNP gro80-92 Viol Pol Rits Viol Civ Rits PopDens*0,5 Terms Trade MNC PEN73 Govcons Trade Dep social sec UNmemby.Women Parl
Barb0,35898 11 1 77,4597 107 115,4 10 63 0,929 4
Hong3,29846 5,53,6 3,5 241,083 100 208,91 8 187 2,70 8
Urug-1,5112 -11 2 13,3417 104 30,35 13 38 7,550 6
Trinid -6,8691-2,6 11 49,3862 110 565,39 16 70 2,133 17
Baham 1,733531 23 16,1245 107 115,4 10 63 0,522 4
Korea 6,225668,5 23 66,5958 108 20,7 10 57 2,74 2
Costa -0,35510,8 11 24,6982 114 174,71 18 61 6,350 12
Sing2,59584 5,34 4 211,901 100 295,3 11 327 7,130 5
Arg-2,0673 -0,9 13 10,9545 112 72,62 5 18 2,750 5
Ven-2,5252 -0,8 13 14,9666 164 198,6 9 49 1,150 10
Domi3,8072 4,62 1 30,9839 107 115,4 10 63 3,317 17
Kuw-1,9945 -4,3 65 34,2199 77 115,4 10 56 2,732 8
Mex-1,984 -0,2 44 21,2603 110 48,59 11 23 1,550 12
Maurit 4,273015,6 12 76,6159 114 115,4 12 134 5,627 7
Malay 0,943193,2 54 23,6854 94 167,94 13 138 0,538 5
Gren5,52036 3,81 2 51,7301 101 115,4 12 38 3,321 8
Antig 5,765095 33 38,7298 101 115,4 12 38 3,314 8
Colom -0,0271,4 24 17,7764 92 51,96 10 30 1,550 8
Seych 0,986173,2 66 51,2835 101 115,4 12 38 1,719 16
Sur-6,9007 -3,6 44 5,2915 101 115,4 12 38 0,620 16
UAE-6,9945 -4,3 65 13,9642 101 115,4 12 38 3,324 0,4
Pan-2,7402 -1,2 42 18,0278 138 1289,73 22 39 9,450 8
Jamai 0,106330,2 22 47,4974 88 478,22 15 76 1,233 5
Braz-1,6445 0,42 3 13,3791 123 97,11 16 13 4,650 6
Fiji-1,7419 0,36 4 20,025 101 115,4 12 38 0,625 8
Saint L 3,502834,4 12 47,0425 101 115,4 12 38 3,316 0,4
TRK1,91599 2,92 4 27,258 98 14,19 14 37 4,550 1
Thai4,17214 66 4 32,9242 99 24,45 10 70 3,349 4
Saint V 6,077385 12 52,6213 101 115,4 12 38 3,315 8
Saint K 4,744075,7 11 34,1614 101 115,4 12 38 3,312 7
Syria -3,82870 77 26,3818 87 7,49 14 45 3,350 8
Belize 1,501962,6 11 9,21954 101 115,4 12 38 3,314 0,4
Saudi -5,3945-3,3 76 8,48528 95 129,48 12 68 1,450 0
South A -1,81210,1 54 17,8326 93 94,05 19 46 3,350 8
Sri L 1,659852,6 45 51,9423 90 30,89 9 64 240 5
Liby-8,9945 -5,4 77 5,19615 97 268,04 12 38 3,340 8
Ecu-2,6577 -0,3 23 19,7484 109 106,26 8 42 1,650 6
Para-2,5989 -0,7 33 10,5357 110 52,72 6 39 3,350 6
Phil-2,4121 -13 3 46,2601 93 41,99 9 50 0,750 9
Tune-0,6568 1,35 5 23,0217 99 78,61 16 81 3,639 4
Oman3,69497 4,16 6 8,60233 101 115,4 12 40 3,324 0
Peru-1,8805 -2,8 35 13,1149 78 84,71 6 18 3,350 6
Domin -1,57-0,5 23 38,8973 98 156,4 7 38 0,550 8
Jord-5,9296 -5,4 44 21,587 112 17,1 24 114 0,440 0,4
China 6,601087,6 77 35,426 111 0 8 32 3,450 21
Iran-1,5831 -1,4 65 19,1311 72 35,63 11 24 3,350 2
Botsw 2,508136,1 12 4,69042 101 115,4 12 38 3,329 5
Guya-3,0375 -5,6 54 6,40312 101 115,4 12 38 0,829 37
Alger -1,6419-0,5 44 10,3923 99 28,01 18 61 3,333 2
Indon 2,328284 65 32,187 111 35,21 9 44 3,345 12
Gabon -4,5436-3,7 43 6,78233 96 115,4 20 68 235 8
El Sal -0,78140,2 34 50,4876 114 62,6 11 32 150 8
Mald6,28967 6,86 5 85,6329 97 115,4 13 40 3,330 4
Guat-2,9261 -1,5 35 29,5466 102 77,37 7 37 0,850 7
Hond-1,2095 -0,3 23 21,7715 104 157,11 15 82 3,350 12
Swaz-0,027 1,66 5 21,166 97 115,4 13 40 3,327 7
Solom 1,714253,3 11 10,8628 97 115,4 13 40 0,617 0,4
Moroc 0,902831,4 55 24 86 36,01 16 44 1,539 0,4
Lesoth -3,3594-0,5 64 24,2899 97 115,4 24 40 0,629 7
Zimbab -1,0673-0,9 54 16,2788 97 73,1 26 40 0,115 12
Boliv -2,8673-1,5 23 8,24621 97 35,21 15 37 2,350 7
Egypt 1,359851,8 55 23,2164 76 5,19 10 40 1,150 2
Sao T -5,1551-3 23 35,4965 97 115,4 13 40 0,620 11
Congo -0,8972-0,8 64 8,18535 99 115,4 19 59 0,635 7
Kenya -0,56910,2 66 20,6882 103 53,34 18 42 0,632 1
Madag -1,6647-2,4 44 14,5945 102 67,82 9 30 0,635 7
Papua -0,29450,6 23 9,38083 75 495,73 24 74 0,620 0,4
Zambia -1,9209-3,1 23 10,6301 97 92,75 15 40 0,631 5
Ghana 0,2072-0,1 66 25,9422 75 111,95 8 31 0,638 7
Pak2,58967 3,14 5 39,6989 95 19,61 15 37 0,648 1
Camer -0,8682-1,5 66 15,9687 91 125,1 12 22 0,635 14
India 3,018623,1 34 53,8702 96 7,13 12 16 0,550 7
Cote-4,4402 -4,7 64 19,7737 80 142,33 18 62 0,535 5
Haiti -2,2235-2,4 77 49,0102 97 72,68 9 15 0,650 7
Tanz-0,5805 0,16 5 17,4356 108 20,62 10 60 0,634 11
Comor -0,5945-1,3 43 50,2892 97 115,4 13 40 0,620 0,4
Zaire -0,4779-1,8 65 13,0384 163 97,26 13 25 0,635 5
Lao0,90545 1,86 7 13,7113 97 11,53 12 40 0,640 9
Nigeria -4,3419-0,4 54 35,0856 100 156,15 11 56 0,635 7
Togo-1,9673 -1,8 65 25,8844 114 133,85 19 62 0,835 4
Ugan0,60895 1,86 6 30,133 88 7,03 7 22 0,633 12
Bangl 1,592291,8 23 94,5833 95 6,5 9 23 2,121 10
Rwanda -2,4244-0,6 66 54,2863 98 44,97 18 18 0,333 17
Ethi-0,9086 -1,9 65 21,6102 84 16,12 26 25 1,450 7
Malaw -1,0121-0,1 76 32,573 93 66,37 15 60 0,631 10
Burun 0,731781,3 76 46,9574 70 53,02 15 31 0,733 7
CAfricR -1,1805-1,5 65 7,07107 109 140,57 14 25 0,635 4
Mozam -3,8945-3,6 64 13,6015 97 38,9 20 40 0,620 16
Bhut7,60545 6,36 5 18,303 97 115,4 20 40 0,624 0,4
Angol 6,30545-0,9 64 4,47214 97 118,94 13 55 0,619 15
Maure -1,2937-0,8 76 4,47214 107 443,05 10 75 0,634 7
Benin -0,4077-0,7 23 20,7605 97 58,93 11 32 0,635 6
GuiBis 3,323861,6 65 18,7083 97 115,4 13 40 0,621 7
Chad4,58 3,46 6 6,7082 97 39,94 23 59 0,635 7
Somal -1,2937-2,3 77 11,9164 111 31,14 13 55 0,635 7
Gamb-0,8252 -0,2 22 29,7321 97 115,4 13 40 0,630 8
Mali0,76072 -2,7 64 8,83176 97 11,21 10 40 0,535 7
Niger -2,9621-4,3 65 7,93725 77 48,68 13 26 0,335 5
Burki 1,132651 65 18,3848 100 31,64 13 21 0,435 7
Sierr -1,3375-1,4 65 24,3926 80 79,49 10 34 0,634 7
Jap1,77126 3,61 2 57,3934 91 6,08 9 18 1139 2
Can1,44494 1,81 1 5,38516 109 388,5 20 42 18,8 5013
Norw1,61599 2,21 1 11,7898 91 91,53 21 58 17,6 5036
Switz 1,518621,4 11 41,2432 100 168,03 13 59 13,3 014
Swe1,40371 1,51 1 14,4568 101 47,09 27 49 33,7 4938
USA1,88967 1,71 1 16,5831 100 25,19 18 16 12,6 506
Austral 1,217741,6 11 4,79583 115 180,39 18 26 850 7
Fran0,57301 1,71 2 32,187 102 62,41 18 37 26,1 506
NL0,70283 1,71 1 66,6108 102 130,26 15 92 28,7 5021
UK2,10371 2,41 2 48,8057 105 91,01 20 42 1750 6
Ger1,37389 2,41 2 47,8121 97 74,69 18 50 2322 20
DK1,61774 2,11 1 34,8569 104 114,62 25 51 27,8 5033
SF2,01599 21 1 12,8062 98 22,77 27 51 22,2 4039
Aus0,74407 21 1 30,5941 92 52,61 18 58 22,5 4022
Blg0,11599 21 1 57,28 96 138,15 14 43 19,8 509
NZ0,33265 0,61 1 11,3137 99 99,27 17 43 14,3 5017
Israel 0,373011,9 22 48,949 103 40,78 29 51 13,2 467
Ire0,35985 3,41 1 22,5167 95 142,63 16 105 19,9 408
Ital1,28792 2,21 1 44,3058 97 76,59 17 32 21,6 4013
Spa1,40108 2,91 1 27,9464 106 60,98 15 29 13,4 4015
Gree-0,7998 11 2 27,8568 105 54,75 21 48 11,9 505
Hun-0,2287 0,22 2 33,7787 87 0 11 42 18,2 407
Port0,88617 3,11 1 32,7567 105 88,05 13 73 10,4 408
Adjustment GNP gro80-92 Viol Pol Rits Viol Civ Rits PopDens*0,5 Terms Trade MNC PEN73 Govcons Trade Dep social sec UNmemby. Women Parl

continuation
Women %LF ln PCIln PCI^2 ln(MPR+1) Fertility Rate pub invest Dyn Fert6091 ethno-fract UN entry UN membycountry
488,1441 66,3263 0,336471,7 41,6 390,4 1966 29Barb
367,75061 60,072 0,336471,4 41,6 280,02 0 Hong
318,38959 70,3852 0,631272,4 23,7 820,2 1945 50Urug
278,46674 71,6857 0,148422,8 22,5 540,56 1962 33Trinid
476,85646 47,0111 0,336472,1 41,6 540,4 1973 22Baham
346,85646 47,0111 0,912281,7 25,8 300,4 1991 4Korea
297,67786 58,9496 03,2 21,7 460,07 1945 50Costa
397,78697 60,6369 1,144221,7 47,3 320,42 1965 30Sing
218,12593 66,0307 0,223142,8 35,3 910,31 1945 50Arg
228,26848 68,3677 0,239023,2 41,6 500,11 1945 50Ven
426,85646 47,0111 0,336472,5 41,6 530,4 1978 17Domi
146,85646 47,0111 0,593333,8 41,6 520,4 1963 32Kuw
317,96207 63,3945 0,148423,3 37,5 490,3 1945 50Mex
357,65586 58,6123 0,336472 41,6 350,4 1968 27Maurit
317,48605 56,041 0,530633,7 39,1 550,72 1957 38Malay
496,85646 47,0111 0,336474,9 41,6 470,4 1974 21Gren
396,85646 47,0111 0,336471,7 41,6 470,4 1981 14Antig
417,53583 56,7887 0,198852,7 21,9 410,06 1945 50Colom
426,85646 47,0111 0,336472,6 41,6 470,4 1976 19Seych
397,71155 59,468 0,336472,8 41,6 420,4 1975 20Sur
66,85646 47,0111 1,376244,6 41,6 660,4 1971 24UAE
277,33498 53,802 0,198853 23,9 500,28 1945 50Pan
317,51152 56,423 0,076962,5 41,6 460,05 1962 33Jamai
357,24708 52,5202 0,190622,9 26,5 470,07 1945 50Braz
197,76387 60,2777 0,350663 41,6 480,4 1970 25Fiji
396,85646 47,0111 0,336473,3 41,6 470,4 1979 16Saint L
337,41998 55,0561 0,810933,6 52,5 560,25 1945 50TRK
476,89264 47,5085 0,392042,3 32,5 360,66 1946 49Thai
396,85646 47,0111 0,336472,6 41,6 470,4 1980 15Saint V
396,85646 47,0111 0,336472,5 41,6 470,4 1983 12Saint K
157,48829 56,0745 1,532566,3 37,5 870,22 1945 50Syria
336,85646 47,0111 0,336474,5 41,6 470,4 1981 14Belize
78,93748 79,8786 0,463736,5 46,4 900,06 1945 50Saudi
338,00102 64,0163 0,254644,2 4264 0,88 194550 South A
377,23634 52,3646 0,122222,5 33,9 480,47 1955 40Sri L
96,85646 47,0111 1,050826,5 33,6 920,23 1955 40Liby
307,28688 53,0986 0,314813,8 39,8 550,53 1945 50Ecu
417,09008 50,2692 0,357674,4 22,9 650,14 1945 50Para
377,07581 50,0671 0,165514 13,4 590,74 1945 50Phil
137,23993 52,4166 0,438253,6 73,8 500,16 1956 39Tune
86,85646 47,0111 0,974566,8 41,6 960,4 1971 24Oman
337,66388 58,735 0,438253,7 17,8 540,59 1945 50Peru
157,11233 50,5852 0,270033,5 32,8 470,04 1945 50Domin
107,19143 51,7167 1,134625,8 38,5 760,05 1955 40Jord
436,58341 43,3413 0,262362,3 41,6 400,12 1945 50China
187,59337 57,6593 0,819786,1 38,2 850,76 1945 50Iran
356,16121 37,9605 0,231115,2 41,6 760,4 1966 29Botsw
217,39634 54,7058 0,412112,6 41,6 410,4 1966 29Guya
47,42417 55,1182 0,548125 65,7 690,43 1962 33Alger
406,85646 47,0111 0,148423,2 38,9 580,76 1950 45Indon
387,22475 52,1971 0,246865,2 41,6 1290,4 1960 35Gabon
457,17396 51,4657 0,667834,2 24,1 610,17 1945 50El Sal
206,85646 47,0111 0,336476,3 41,6 900,4 1965 30Mald
267,41878 55,0383 0,385265,5 23,1 800,64 1945 50Guat
186,80351 46,2877 0,307485,1 2171 0,16 194550 Hond
407,07496 50,0551 0,336475 41,6 770,4 1968 27Swaz
266,85646 47,0111 0,336475,5 41,6 860,4 1978 17Solom
206,74993 45,5616 0,631274,5 63,2 630,53 1956 39Moroc
445,84644 34,1808 0,336474,8 41,6 820,4 1966 29Lesoth
356,84268 46,8223 0,425275,5 44,4 730,54 1980 15Zimbab
247,04054 49,5692 0,350664,7 50,5 700,68 1945 50Boliv
116,32257 39,9748 0,636584,2 91,8 600,04 1945 50Egypt
266,36303 40,4881 0,182325,4 41,6 870,4 1975 20Sao T
396,99577 48,9407 0,398786,3 41,6 1070,4 1960 35Congo
406,45362 41,6493 0,058276,4 28,6 810,83 1963 32Kenya
406,92067 47,8957 0,173956,6 39,4 1000,06 1960 35Madag
397,03527 49,495 0,104365 69,2 790,42 1975 20Papua
297,06647 49,935 0,190626,5 39,8 980,82 1964 31Zambia
406,95559 48,3803 0,076966,1 41,6 880,71 1957 38Ghana
116,7093 45,0148 0,357676,3 49,4 920,64 1947 48Pak
306,60123 43,5762 0,113335,8 34,4 1010,89 1960 35Camer
266,42487 41,2789 0,148424 43,9 670,89 1945 50India
346,92854 48,0046 0,058277,4 38,3 1030,86 1960 35Cote
406,82546 46,5869 0,122224,9 41,6 770,01 1945 50Haiti
485,6058 31,425 0,148426,8 38,2 1000,93 1961 34Tanz
416,36303 40,4881 0,182327,1 41,6 1040,4 1975 20Comor
365,93754 35,2543 0,076966,7 31,6 1120,9 1960 35Zaire
456,36303 40,4881 0,908266,7 41,6 1090,6 1955 40Lao
207,03262 49,4578 0,086186,6 37,4 960,87 1960 35Nigeria
376,01859 36,2235 0,173956,6 39,4 1000,71 1960 35Togo
415,9162 35,0014 0,113337,3 36,9 1060,9 1962 33Ugan
76,43133 41,362 0,095314,8 65,8 730,4 1974 21Bangl
486,28786 39,5372 0,076968,5 49,6 1130,14 1962 33Rwanda
425,56834 31,0065 0,548127 41,6 1040,69 1945 50Ethi
426,04737 36,5707 0,067667,6 66,9 1100,62 1964 31Malaw
266,1591 37,9345 0,131036,8 79,4 1000,04 1962 33Burun
466,69208 44,784 0,139766,2 30,3 1100,69 1960 35CAfricR
487,22111 52,1444 0,198856,5 41,6 1030,65 1975 20Mozam
326,36303 40,4881 0,262365,9 41,6 980,4 1971 24Bhut
397,17625 51,4986 0,451086,5 41,6 1000,78 1976 19Angol
226,83518 46,7197 0,587796,5 35100 0,33 196134 Maure
246,98008 48,7215 0,086187,1 62,7 1030,62 1960 35Benin
426,36303 40,4881 0,182325,8 41,6 1140,4 1974 21GuiBis
176,66568 44,4313 0,277635,9 74,5 990,83 1960 35Chad
396,79234 46,1359 0,667837 41,6 1000,08 1960 35Somal
416,01859 36,2235 0,122226,2 41,6 970,4 1965 30Gamb
166,29342 39,6071 0,182327,1 41,6 1000,78 1960 35Mali
476,40357 41,0058 0,048797,1 41,6 1000,73 1960 35Niger
496,36303 40,4881 0,104366,5 52,4 1020,68 1960 35Burki
336,76964 45,8281 0,076966,5 35,2 1040,77 1961 34Sierr
407,90138 62,4318 0,182321,7 25,6 810,01 1956 39Jap
408,95648 80,2185 0,285181,8 29,6 470,75 1945 50Can
438,60209 73,9959 0,636581,9 28,6 680,04 1945 50Norw
379,13917 83,5244 0,270031,6 41,6 670,5 0 Switz
478,77694 77,0347 0,587792 40,7 890,08 1946 49Swe
429,20864 84,799 0,636582 18,3 580,5 1945 50USA
388,88239 78,8969 0,357671,9 35,9 570,32 1945 50Austral
378,58373 73,6804 0,68311,8 33,5 650,26 1945 50Fran
358,6282 74,4458 0,553891,7 3553 0,11945 50NL
408,75935 76,7263 0,444691,9 44,2 700,32 1945 50UK
388,70583 75,7914 0,587791,5 16,5 620,03 1973 22Ger
408,68271 75,3894 0,451081,7 24,9 640,05 1945 50DK
448,45914 71,5571 0,524731,8 37,5 660,16 1955 40SF
398,40649 70,669 0,548121,5 37,2 560,13 1955 40Aus
378,55776 73,2352 0,652331,6 12,3 630,55 1945 50Blg
398,88489 78,9412 0,32932,1 39,1 550,37 1945 50NZ
358,28349 68,6163 1,44222,9 32,2 750,2 1949 46Israel
278,07527 65,21 0,32932,2 21,3 560,04 1955 40Ire
318,38366 70,2858 0,518791,3 12,7 540,04 1955 40Ital
277,90138 62,4318 0,609771,4 25,5 500,44 1955 40Spa
317,5438 56,909 1,128171,5 28,1 670,1 1945 50Gree
426,85646 47,0111 0,693151,8 8991 0,11955 40Hun
417,38895 54,5965 0,500781,5 20,6 490,01 1955 40Port
Women %LF ln PCIln PCI^2 ln(MPR+1) Fertility Rate pub invest Dyn Fert6091 ethno-fract UN entry UN membycountry

continuation
DYN LEX LEX 1960 1 der e-funct 1 der pi-func Viol Pol Rits Viol Civ Rits PopDens*0,5 Terms Trade MNC PEN73 Govcons
Barb 6,764,3 0,01007 2,15911 177,4597 107115,4 10
Hong 6,766,2 0,00405 2,51413,6 3,5241,083 100208,91 8
Urug 2,867,7 0,00321 2,614281 213,3417 10430,35 13
Trinid 5,2 63,5 0,000693,37767 11 49,3862 110565,39 16
Baham 5,4 63,2 0,010072,1591 23 16,1245 107115,4 10
Korea 11,4 53,9 0,008812,20781 23 66,5958 10820,7 10
Costa 8,5 61,6 0,007982,24486 11 24,6982 114174,71 18
Sing 664,5 0,00128 3,048934 4211,901 100295,3 11
Arg 3,964,9 0,0026 2,707691 310,9545 11272,62 5
Ven 7,159,5 0,00123 3,069441 314,9666 164198,6 9
Domi 14,3 51,80,01007 2,1591 21 30,9839 107115,4 10
Kuw 9,159,5 0,00022 4,08756 534,2199 77115,4 10
Mex 8,757 0,00393 2,526994 421,2603 11048,59 11
Maurit 7,1 59,1 0,012422,0845 12 76,6159 114115,4 12
Malay 11,4 53,9 0,006952,2971 54 23,6854 94167,94 13
Gren 13,1 51,80,01007 2,1591 12 51,7301 101115,4 12
Antig 15,5 51,8 0,010072,1591 33 38,7298 101115,4 12
Colom 8,6 56,5 0,005482,39031 24 17,7764 9251,96 10
Seych 13,7 51,8 0,010072,1591 66 51,2835 101115,4 12
Sur 6,260,2 0,01007 2,15914 45,2915 101115,4 12
UAE 12,4 530,01527 2,01366 65 13,9642 101115,4 12
Pan 7,760,7 0,00097 3,195884 218,0278 1381289,73 22
Jamai 6,7 62,7 0,003452,5825 22 47,4974 88478,22 15
Braz 854,6 0,00752 2,26732 313,3791 12397,11 16
Fiji 4,159 0,01007 2,15916 420,025 101115,4 12
Saint L 14,3 51,8 0,010072,1591 12 47,0425 101115,4 12
TRK 11,4 50,10,00822 2,23374 24 27,258 9814,19 14
Thai 10,2 52,30,02214 1,89228 64 32,9242 9924,45 10
Saint V 13,7 51,8 0,010072,1591 12 52,6213 101115,4 12
Saint K 13,1 51,8 0,010072,1591 11 34,1614 101115,4 12
Syria 12,4 49,7 0,009742,17115 77 26,3818 877,49 14
Belize 11,8 51,8 0,010072,1591 11 9,21954 101115,4 12
Saudi 16,9 44,4 0,001562,94908 76 8,48528 95129,48 12
South A 10 490,00157 2,94543 54 17,8326 9394,05 19
Sri L 5,8 620,01773 1,96391 45 51,9423 9030,89 9
Liby 12,2 46,70,00936 2,18568 77 5,19615 97268,04 12
Ecu 9,453,1 0,01229 2,088252 319,7484 109106,26 8
Para 2,263,8 0,02168 1,898893 310,5357 11052,72 6
Phil 8,552,8 0,01256 2,080713 346,2601 9341,99 9
Tune 1448,3 0,01179 2,102875 523,0217 9978,61 16
Oman 21,6 40,10,10209 1,46514 66 8,60233 101115,4 12
Peru 12,1 47,70,00569 2,37577 35 13,1149 7884,71 6
Domin 11 51,8 0,015172,01597 23 38,8973 98156,4 7
Jord 15,4 46,90,00571 2,37403 44 21,587 11217,1 24
China 17,3 47,1 0,011332,11691 77 35,426 1110 8
Iran 12,6 49,50,00445 2,47496 65 19,1311 7235,63 11
Botsw 11,9 45,5 0,010662,13862 12 4,69042 101115,4 12
Guya 5,956,1 0,01007 2,15915 46,40312 101115,4 12
Alger 14,1 470,00921 2,19134 44 10,3923 9928,01 18
Indon 17,4 41,2 0,020231,92102 65 32,187 11135,21 9
Gabon 10,9 40,8 0,012912,07105 43 6,78233 96115,4 20
El Sal 10,6 50,5 0,013942,0446 34 50,4876 11462,6 11
Mald 15,6 43,60,03949 1,71764 65 85,6329 97115,4 13
Guat 14,3 45,60,01313 2,06512 35 29,5466 10277,37 7
Hond 14,5 46,50,01704 1,97706 23 21,7715 104157,11 15
Swaz 1540,2 0,01007 2,15916 521,166 97115,4 13
Solom 14 50,3 0,010072,1591 11 10,8628 97115,4 13
Moroc 12,3 46,7 0,015482,009 55 2486 36,01 16
Lesoth 12,6 42,9 0,039491,71764 64 24,2899 97115,4 24
Zimbab 11,9 45,3 0,005172,41396 54 16,2788 9773,1 26
Boliv 10,6 42,7 0,01272,07688 23 8,24621 9735,21 15
Egypt 11,7 46,1 0,006952,2971 55 23,2164 765,19 10
Sao T 11,2 51,8 0,039491,71764 23 35,4965 97115,4 13
Congo 11,1 41,6 0,020431,91795 64 8,18535 99115,4 19
Kenya 12,6 44,7 0,017171,97447 66 20,6882 10353,34 18
Madag 12,7 40,7 0,04741,66591 44 14,5945 10267,82 9
Papua 13,1 40,6 0,030791,79067 23 9,38083 75495,73 24
Zambia 11,7 41,6 0,004952,43178 23 10,6301 9792,75 15
Ghana 8,7 450,02364 1,87159 66 25,9422 75111,95 8
Pak 12,7 43,10,01439 2,03387 45 39,6989 9519,61 15
Camer 13,7 39,2 0,026371,83775 66 15,9687 91125,1 12
India 12,8 440,01865 1,94742 34 53,8702 967,13 12
Cote 13,4 39,20,01849 1,95023 64 19,7737 80142,33 18
Haiti 12,1 42,2 0,066461,57428 77 49,0102 9772,68 9
Tanz 12,5 40,50,04406 1,68642 65 17,4356 10820,62 10
Comor 11,2 42,5 0,039491,71764 43 50,2892 97115,4 13
Zaire 10,8 41,3 0,023921,868 65 13,0384 16397,26 13
Lao 940,4 0,06406 1,584016 713,7113 9711,53 12
Nigeria 11,5 39,5 0,04741,66591 54 35,0856 100156,15 11
Togo 13,8 39,30,05786 1,61124 65 25,8844 114133,85 19
Ugan 8,343 0,04511 1,679756 630,133 887,03 7
Bangl 11,7 39,6 0,039491,71764 23 94,5833 956,5 9
Rwanda 6,8 42,3 0,165631,35115 66 54,2863 9844,97 18
Ethi 10,2 360,13656 1,3955 65 21,6102 8416,12 26
Malaw 10,5 37,8 0,061841,5934 76 32,573 9366,37 15
Burun 7 41,3 0,248671,2623 76 46,9574 7053,02 15
CAfricR 10,9 38,5 0,069061,56419 65 7,07107 109140,57 14
Mozam 10,5 37,3 0,022381,88893 64 13,6015 9738,9 20
Bhut 11,8 38,70,02637 1,83775 65 18,303 97115,4 20
Angol 11,8 37,3 0,016651,9847 64 4,47214 97118,94 13
Maure 12,4 35,3 0,035181,75116 76 4,47214 107443,05 10
Benin 12,8 350,0719 1,55369 23 20,7605 9758,93 11
GuiBis 9,7 340,03949 1,71764 65 18,7083 97115,4 13
Chad 12,6 34,80,11665 1,43281 66 6,7082 9739,94 23
Somal 10,7 360,12576 1,41488 77 11,9164 11131,14 13
Gamb 13,4 32,30,03949 1,71764 22 29,7321 97115,4 13
Mali 11,2 34,80,10209 1,46514 64 8,83176 9711,21 10
Niger 11 35,3 0,165631,35115 65 7,93725 7748,68 13
Burki 12,4 36,2 0,18591,32529 65 18,3848 10031,64 13
Sierr 12,5 31,5 0,017311,97186 65 24,3926 8079,49 10
Jap 6,467,9 0,00182 2,874591 257,3934 916,08 9
Can 3,571 0,00054 3,522771 15,38516 109388,5 20
Norw 2,173,4 0,00067 3,394611 111,7898 9191,53 21
Switz 3,6 71,2 0,001153,10319 11 41,2432 100168,03 13
Swe 2,573,1 0,00074 3,340571 114,4568 10147,09 27
USA 3,669,9 0,0005 3,565991 116,5831 10025,19 18
Austral 3,4 70,7 0,000913,22839 11 4,79583 115180,39 18
Fran 3,670,3 0,00117 3,097231 232,187 10262,41 18
NL 2,373,2 0,00095 3,20621 166,6108 102130,26 15
UK 370,6 0,00087 3,255571 248,8057 10591,01 20
Ger 3,369,7 0,00116 3,099051 247,8121 9774,69 18
DK 2,272,1 0,00101 3,172131 134,8569 104114,62 25
SF 4,368,4 0,00127 3,05271 112,8062 9822,77 27
Aus 3,868,6 0,00136 3,017281 130,5941 9252,61 18
Blg 370,2 0,00127 3,054681 157,28 96138,15 14
NZ 2,670,9 0,00111 3,124481 111,3137 9999,27 17
Israel 4,4 68,6 0,001722,90203 22 48,949 10340,78 29
Ire 369,6 0,00179 2,882991 122,5167 95142,63 16
Ital 4,169,2 0,00173 2,899361 144,3058 9776,59 17
Spa 4,869 0,00279 2,676931 127,9464 10660,98 15
Gree 4,468,7 0,00388 2,532991 227,8568 10554,75 21
Hun 1,768,1 0,00151 2,964852 233,7787 870 11
Port 6,863,3 0,00459 2,462471 132,7567 10588,05 13
DYN LEX LEX 1960 1 der e-funct 1 der pi-func Viol Pol Rits Viol Civ Rits PopDens*0,5 Terms Trade MNC PEN73 Govcons

continuation
Growth 65-80 Growth 80-90 Predicted Growth Adjustment gender development index Life Expectancy 1990 SIPE-Index gender power index human development index gender development index mean yearsof schooling
Barb3,5 1,41,04102 0,35898 0,87875,1 1010,545 0,928 0,8788,9
Hong6,2 5,52,20154 3,29846 0,85477,3 1010,391 0,913 0,8547
Urug2,5 -0,9 0,6112-1,5112 0,802 72,2157 0,361 0,8810,802 7,8
Trinid 3,1-6 0,8691 -6,86910,786 71,6 1010,533 0,877 0,7868
Baham 11,7 -0,0335 1,733530,828 71,5 1010,533 0,875 0,8286,2
Korea 7,38,9 2,67434 6,225660,78 70,1 320,255 0,872 0,788,8
Costa 3,30,6 0,95506 -0,35510,763 74,9 1010,474 0,852 0,7635,7
Sing8,3 5,73,10416 2,59584 0,82274 610,424 0,849 0,8223,9
Arg1,7 -1,8 0,26735-2,0673 0,768 71140 0,415 0,8320,768 8,7
Ven2,3 -20,52524 -2,5252 0,76570 820,391 0,824 0,7656,3
Domi-0,8 3-0,8072 3,8072 0,721 72101 0,391 0,8190,721 4,7
Kuw0,6 -2,2 -0,2055-1,9945 0,716 73,4101 0,241 0,8150,716 5,4
Mex3,6 -0,9 1,08401-1,984 0,741 69,7104 0,399 0,8050,741 4,7
Maurit 3,75,4 1,12699 4,273010,722 69,6 1010,35 0,794 0,7224,1
Malay 4,72,5 1,55681 0,943190,768 70,1 630,384 0,79 0,7685,3
Gren0,1 5,1-0,4204 5,52036 0,721 70101 0,391 0,7870,721 4,7
Antig -1,44,7 -1,0651 5,765090,721 74101 0,391 0,7850,721 4,6
Colom 3,71,1 1,12699 -0,0270,72 68,8 980,435 0,77 0,727,1
Seych 4,62,5 1,51383 0,986170,721 71101 0,391 0,7610,721 4,6
Sur5,5 -51,90066 -6,9007 0,69969,5 1010,348 0,751 0,6994,2
UAE0,6 -7,2 -0,2055-6,9945 0,674 70,5101 0,239 0,7380,674 5,1
Pan2,8 -20,74015 -2,7402 0,76572,4 1060,43 0,738 0,7656,7
Jamai -0,1-0,4 -0,5063 0,106330,71 73,1 530,391 0,736 0,715,3
Braz6,3 0,62,24452 -1,6445 0,70965,6 1620,358 0,73 0,7093,9
Fiji4,2 -0,4 1,3419-1,7419 0,722 64,8101 0,314 0,730,722 5,1
Saint L 2,74,2 0,69717 3,502830,721 72101 0,391 0,720,721 3,9
TRK3,6 31,08401 1,91599 0,74465,1 830,234 0,717 0,7443,5
Thai4,4 5,61,42786 4,17214 0,79866,1 180,373 0,715 0,7983,8
Saint V 0,25,7 -0,3774 6,077380,721 71101 0,347 0,7090,721 4,6
Saint K 46 1,25593 4,744070,721 70101 0,347 0,6970,721 6
Syria 5,1-2,1 1,72874 -3,82870,571 66,1 480,285 0,694 0,5714,2
Belize 3,42,5 0,99804 1,501960,721 68101 0,369 0,6890,721 4,6
Saudi 0,6-5,6 -0,2055 -5,39450,514 65,5 390,347 0,688 0,5143,7
South A 3,2-0,9 0,91208 -1,81210,721 61,7 1440,347 0,673 0,7213,9
Sri L 2,82,4 0,74015 1,659850,66 70,9 560,288 0,663 0,666,9
Liby0,6 -9,2 -0,2055-8,9945 0,534 61,851 0,347 0,6580,534 3,4
Ecu5,4 -0,8 1,85768-2,6577 0,641 66138 0,375 0,6460,641 5,6
Para4,1 -1,3 1,29892-2,5989 0,628 67,1102 0,343 0,6410,628 4,9
Phil3,2 -1,5 0,91208-2,4121 0,625 64,279 0,435 0,6030,625 7,4
Tune4,7 0,91,55681 -0,6568 0,64166,7 980,254 0,60,641 2,1
Oman9 7,13,40503 3,69497 0,542 65,9101 0,347 0,5980,542 0,9
Peru0,8 -2-0,1195 -1,8805 0,63163 1170,4 0,592 0,6316,4
Domin 3,8-0,4 1,16997 -1,570,59 66,7 940,412 0,586 0,594,3
Jord5,8 -3,9 2,02961-5,9296 0,542 66,9 400,23 0,582 0,5425
China 4,17,9 1,29892 6,601080,578 70,1 860,474 0,566 0,5784,8
Iran2,9 -0,8 0,78313-1,5831 0,611 66,292 0,237 0,5570,611 3,9
Botsw 9,96,3 3,79187 2,508130,696 59,8 1010,407 0,552 0,6962,4
Guya0,7 -3,2 -0,1625-3,0375 0,584 64,2101 0,461 0,5410,584 5,1
Alger 4,2-0,3 1,3419 -1,64190,508 65,1 1430,266 0,528 0,5082,6
Indon 5,24,1 1,77172 2,328280,591 61,5 520,362 0,515 0,5913,9
Gabon 5,6-2,6 1,94365 -4,54360,542 52,5 1010,347 0,503 0,5422,9
El Sal 1,5-0,6 0,18138 -0,78140,533 64,4 860,397 0,503 0,5334,1
Mald1,8 6,60,31033 6,28967 0,52262,5 1010,294 0,497 0,5224,5
Guat3 -2,1 0,82611-2,9261 0,481 63,461 0,39 0,4890,481 4,1
Hond1,1 -1,2 0,00946-1,2095 0,524 64,947 0,406 0,4720,524 3,9
Swaz3,7 1,11,12699 -0,027 0,50856,8 1010,357 0,458 0,5083,7
Solom 53,4 1,68575 1,714250,542 69,5 1010,198 0,439 0,5421
Moroc 2,71,6 0,69717 0,902830,45 62102 0,271 0,4330,45 2,8
Lesoth 6,8-0,9 2,45943 -3,35940,466 57,3 1010,339 0,431 0,4663,4
Zimbab 1,7-0,8 0,26735 -1,06730,512 59,6 1010,398 0,398 0,5122,9
Boliv 1,7-2,6 0,26735 -2,86730,519 54,5 1060,344 0,398 0,5194
Egypt 2,82,1 0,74015 1,359850,453 60,3 900,237 0,389 0,4532,8
Sao T 3,3-4,2 0,95506 -5,15510,33 67101 0,27 0,3740,33 2,3
Congo 2,7-0,2 0,69717 -0,89720,33 53,7 1010,206 0,372 0,332,1
Kenya 3,10,3 0,8691 -0,56910,471 59,7 450,27 0,369 0,4712,3
Madag -0,4-2,3 -0,6353 -1,66470,432 54,5 850,27 0,327 0,4322,2
Papua 0,6-0,5 -0,2055 -0,29450,487 54,9 1010,228 0,318 0,4870,9
Zambia -1,2-2,9 -0,9791 -1,92090,403 54,4 490,271 0,314 0,4032,7
Ghana -0,8-0,6 -0,8072 0,20720,46 5554 0,313 0,3110,46 3,5
Pak1,8 2,90,31033 2,58967 0,3657,7 490,153 0,311 0,361,9
Camer 2,4-0,3 0,56822 -0,86820,462 53,7 750,339 0,31 0,4621,6
India 1,53,2 0,18138 3,018620,401 59,1 880,226 0,309 0,4012,4
Cote2,8 -3,7 0,74015-4,4402 0,341 53,495 0,157 0,2860,341 1,9
Haiti 0,9-2,3 -0,0765 -2,22350,354 55,7 390,349 0,275 0,3541,7
Tanz0,8 -0,7 -0,1195-0,5805 0,359 5446 0,27 0,270,359 2
Comor 0,6-0,8 -0,2055 -0,59450,402 55101 0,157 0,2690,402 1
Zaire -1,3-1,5 -1,0221 -0,47790,372 5366 0,201 0,2620,372 1,6
Lao0,6 0,7-0,2055 0,90545 0,40549,7 300,27 0,246 0,4052,9
Nigeria 4,2-3 1,3419 -4,34190,383 51,5 580,198 0,246 0,3831,2
Togo1,7 -1,7 0,26735-1,9673 0,38 5463 0,182 0,2180,38 1,6
Ugan-2,2 -0,8 -1,4090,60895 0,316 5235 0,27 0,1940,316 1,1
Bangl -0,31 -0,5923 1,592290,334 51,8 1010,287 0,189 0,3342
Rwanda 1,6-2,2 0,22437 -2,42440,33 49,5 430,27 0,186 0,331,1
Ethi0,4 -1,2 -0,2914-0,9086 0,217 45,514 0,205 0,1720,217 1,1
Malaw 3,2-0,1 0,91208 -1,01210,315 48,1 300,255 0,168 0,3151,7
Burun 2,41,3 0,56822 0,731780,274 48,5 460,337 0,167 0,2740,3
CAfricR 0,8-1,3 -0,1195 -1,18050,35 49,5 900,205 0,159 0,351,1
Mozam 0,6-4,1 -0,2055 -3,89450,229 47,5 1010,35 0,154 0,2291,6
Bhut0,6 7,4-0,2055 7,60545 0,33 50,8101 0,27 0,150,33 0,2
Angol 0,66,1 -0,2055 6,305450,33 48,9 1010,278 0,143 0,331,5
Maure -0,1-1,8 -0,5063 -1,29370,33 4790 0,163 0,140,33 0,3
Benin -0,3-1 -0,5923 -0,40770,314 4784 0,271 0,1130,314 0,7
GuiBis -2,71,7 -1,6239 3,323860,276 42,5 1010,327 0,09 0,2760,3
Chad-1,9 3,3-1,28 4,58 0,2646,5 790,27 0,088 0,260,2
Somal -0,1-1,8 -0,5063 -1,29370,2 46,1 390,27 0,087 0,20,2
Gamb2,3 -0,3 0,52524-0,8252 0,2 44101 0,315 0,0860,2 0,6
Mali2,1 1,20,43928 0,76072 0,19545 940,237 0,082 0,1950,3
Niger -2,5-4,5 -1,5379 -2,96210,196 45,5 640,27 0,08 0,1960,1
Burki 1,71,4 0,26735 1,132650,214 48,2 950,28 0,074 0,2140,1
Sierr 0,7-1,5 -0,1625 -1,33750,195 4235 0,27 0,0650,195 0,9
Jap5,1 3,51,72874 1,77126 0,89678,6 1430,442 0,983 0,89610,7
Can3,3 2,40,95506 1,44494 0,89177 1310,655 0,982 0,89112,1
Norw3,6 2,71,08401 1,61599 0,91177,1 1860,752 0,979 0,91111,6
Switz 1,51,7 0,18138 1,518620,852 77,4 1690,513 0,978 0,85211,1
Swe2 1,80,39629 1,40371 0,91977,4 1870,757 0,977 0,91911,1
USA1,8 2,20,31033 1,88967 0,90175,9 1270,623 0,976 0,90112,3
Austral 2,21,7 0,48226 1,217740,901 76,5 1830,568 0,972 0,90111,5
Fran3,7 1,71,12699 0,57301 0,89876,4 2000,433 0,971 0,89811,6
NL2,7 1,40,69717 0,70283 0,85177,2 1950,625 0,97 0,85110,6
UK2 2,50,39629 2,10371 0,86275,7 1890,483 0,964 0,86211,5
Ger3 2,20,82611 1,37389 0,87 75,2180 0,561 0,9570,87 11,1
DK2,2 2,10,48226 1,61774 0,90475,8 1820,683 0,955 0,90410,4
SF3,6 3,11,08401 2,01599 0,91875,5 1590,722 0,954 0,91810,6
Aus4 21,25593 0,74407 0,88274,8 1860,61 0,952 0,88211,1
Blg3,6 1,21,08401 0,11599 0,85275,2 2000,479 0,952 0,85210,7
NZ1,7 0,60,26735 0,33265 0,86875,2 1960,637 0,947 0,86810,4
Israel 3,71,5 1,12699 0,373010,87 75,9 1010,561 0,938 0,8710
Ire2,8 1,10,74015 0,35985 0,81374,6 1900,469 0,925 0,8138,7
Ital3,2 2,20,91208 1,28792 0,86176 1980,585 0,924 0,8617,3
Spa4,1 2,71,29892 1,40108 0,79577 1960,452 0,923 0,7956,8
Gree4,8 0,81,59979 -0,7998 0,82576,1 1650,343 0,902 0,8256,9
Hun5,1 1,51,72874 -0,2287 0,83670,9 1690,506 0,887 0,8369,6
Port4,6 2,41,51383 0,88617 0,83274 1520,435 0,853 0,8326
Growth 65-80 Growth 80-90 Predicted Growth Adjustment gender development index Life Expectancy 1990 SIPE-Index gender power index human development index gender development index mean yearsof schooling

the state sector and the issue of privatization

Country code %public investment government expenditure per GDP
Barb41,6 34
Hong41,6 18
Urug23,7 24,8
Trinid 22,5 33,4
Baham 41,6 18
Korea 25,8 16,7
Costa 21,7 24,5
Sing47,3 34,5
Arg35,3 15,3
Ven41,6 21,5
Domi41,6 30
Kuw41,6 51,3
Mex37,5 19,8
Maurit 41,6 26,7
Malay 39,1 29
Gren41,6 30
Antig 41,6 30
Colom 21,9 15,2
Seych 41,6 30
Sur41,6 51,7
UAE41,6 13,3
Pan23,9 28,7
Jamai 41,6 32,2
Braz26,5 24,1
Fiji41,6 25,8
Saint L 41,6 30
TRK52,5 22,8
Thai32,5 15,5
Saint V 41,6 30
Saint K 41,6 30
Syria 37,5 27,8
Belize 41,6 29,3
Saudi 46,4 30
South A 42 30,2
Sri L 33,9 29,5
Liby33,6 54,8
Ecu39,8 13,3
Para22,9 9
Phil13,4 15,6
Tune73,8 35,2
Oman41,6 46,7
Peru17,8 16,6
Domin 32,8 18,9
Jord38,5 37
China 41,6 30
Iran38,2 17,5
Botsw 41,6 36,4
Guya41,6 65,7
Alger 65,7 40,7
Indon 38,9 19,6
Gabon 41,6 38,7
El Sal 24,1 10,3
Mald41,6 30
Guat23,1 11,6
Hond21 19,4
Swaz41,6 25,4
Solom 41,6 37,7
Moroc 63,2 28
Lesoth 41,6 54,4
Zimbab 44,4 46,6
Boliv 50,5 14,5
Egypt 91,8 40
Sao T 41,6 23
Congo 41,6 26,1
Kenya 28,6 28,6
Madag 39,4 14,4
Papua 69,2 28,3
Zambia 39,8 38,1
Ghana 41,6 13,6
Pak49,4 23,3
Camer 34,4 27,5
India 43,9 17,6
Cote38,3 31,6
Haiti 41,6 18,2
Tanz38,2 28,7
Comor 41,6 43,7
Zaire 31,6 34,2
Lao41,6 23
Nigeria 37,4 23,6
Togo39,4 31,3
Ugan36,9 12,7
Bangl 65,8 12,5
Rwanda 49,6 22,7
Ethi41,6 34,9
Malaw 66,9 26,7
Burun 79,4 21,5
CAfricR 30,3 27,6
Mozam 41,6 14,9
Bhut41,6 41
Angol 41,6 23
Maure 35 33,4
Benin 62,7 21,7
GuiBis 41,6 72,5
Chad74,5 9,4
Somal 41,6 25,4
Gamb41,6 30,6
Mali41,6 29,8
Niger 41,6 21,3
Burki 52,4 15,7
Sierr 35,2 16,5
Jap25,6 16,3
Can29,6 22,2
Norw28,6 43,4
Switz 41,6 21
Swe40,7 41,3
USA18,3 23,5
Austral 35,9 27,5
Fran33,5 43,7
NL35 53,9
UK44,2 35,6
Ger16,5 30,4
DK24,9 38,3
SF37,5 30
Aus37,2 39,1
Blg12,3 50,1
NZ39,1 44,7
Israel 32,2 48
Ire21,3 52,4
Ital12,7 46,8
Spa25,5 33,6
Gree28,1 40,1
Hun89 56,1
Port20,6 41,9
public investments in the preceeding Kondratieff cycle Government expenditures

economic growth and the environment

growth greenhouse index

1980-92
Barb1 0
Hong5,5 0,14
Urug-1 0,16
Trinid -2,60,63
Baham 10
Korea 8,50,17
Costa 0,80,25
Sing5,3 0,4
Arg-0,9 0,18
Ven-0,8 0,27
Domi4,6 0
Kuw-4,3 0,57
Mex-0,2 0,23
Maurit 5,60
Malay 3,20,39
Gren3,8 0
Antig 50
Colom 1,40,42
Seych 3,20
Sur-3,6 0,23
UAE-4,3 1,08
Pan-1,2 0,24
Jamai 0,20,12
Braz0,4 0,26
Fiji0,3 0,14
Saint L 4,40
TRK2,9 0,07
Thai6 0,27
Saint V 50
Saint K 5,70
Syria 00,08
Belize 2,60
Saudi -3,30,37
South A 0,10,27
Sri L 2,60,06
Liby-5,4 0,25
Ecu-0,3 0,44
Para-0,7 0,42
Phil-1 0,12
Tune1,3 0,06
Oman4,1 0,24
Peru-2,8 0,21
Domin -0,50,05
Jord-5,4 0,09
China 7,60,08
Iran-1,4 0,1
Botsw 6,10,15
Guya-5,6 0,12
Alger -0,50,08
Indon 40,09
Gabon -3,70,4
El Sal 0,20,04
Mald6,8 0
Guat-1,5 0,15
Hond-0,3 0,24
Swaz1,6 0,1
Solom 3,30
Moroc 1,40,04
Lesoth -0,50
Zimbab -0,90,1
Boliv -1,50,19
Egypt 1,80,06
Sao T -30
Congo -0,80,17
Kenya 0,20,04
Madag -2,40,31
Papua 0,60,05
Zambia -3,10,1
Ghana -0,10,07
Pak3,1 0,04
Camer -1,50,25
India 3,10,05
Cote-4,7 0,73
Haiti -2,40,01
Tanz0,1 0,04
Comor -1,30
Zaire -1,80,09
Lao1,8 1,5
Nigeria -0,40,12
Togo-1,8 0,03
Ugan1,8 0,02
Bangl 1,80,04
Rwanda -0,60,01
Ethi-1,9 0,03
Malaw -0,10,17
Burun 1,30
CAfricR -1,50,13
Mozam -3,60,06
Bhut6,3 0
Angol -0,90,12
Maure -0,80,09
Benin -0,70,06
GuiBis 1,60,5
Chad3,4 0,1
Somal -2,30,06
Gamb-0,2 0,11
Mali-2,7 0,04
Niger -4,30,05
Burki 10,06
Sierr -1,40,05
Jap3,6 0,38
Can1,8 0,61
Norw2,2 0,49
Switz 1,40,23
Swe1,5 0,25
USA1,7 0,7
Austral 1,60,64
Fran1,7 0,27
NL1,7 0,34
UK2,4 0,38
Ger2,4 0,55
DK2,1 0,35
SF2 0,36
Aus2 0,28
Blg2 0,37
NZ0,6 0,43
Israel 1,90,27
Ire3,4 0,37
Ital2,2 0,28
Spa2,9 0,24
Gree1 0,29
Hun0,2 0,24
Port3,1 0,21
country code GNP gro80-92 greenhouse

data for the final model


Country Code absolute GNP (UNDP, 1996) economic growth 80-93, pc. and year (UNDP, 1996) inflation 93 (UNDP, 1996) FDI per GDP (UNCTAD, 1996; Business Central Europe, 1996) UN membership years (Weltalmanach, 1996, 1995)
Canada575 1,41,2 18,51945
USA6388 1,72 4,61945
Japan3903 3,40,8 0,41956
NL320 1,71,6 19,51945
NOR112 2,21 13,81945
SF98 1,52,3 2,51955
France1293 1,62,2 6,41945
Iceland7 1,22,9 7,81945
Swed215 1,32,6 51946
Spain536 2,74,4 5,41955
Australia308 1,61,1 15,61945
Belgium218 1,94,4 10,61945
Austria185 23,6 9,41955
NZ44 0,70,9 91945
CH252 1,12,1 10,81997
UK1046 2,33,4 141945
DK137 21,2 6,21945
GER1903 2,13,9 61973
IRE46 3,63,6 24,51955
ITA1133 2,14,4 4,51955
GRE78 0,912,6 24,91945
ISR73 211 4,71949
LUX15 2,86,2 10,61945
MAL3 3,23,3 28,21964
POR88 3,37,4 6,51955
HUNG36 1,221,5 15,6 1955
LATV6 -0,6 74,28,5 1991
POL86 0,431,1 5,31945
RUS346 -1873,5 1,70520231 1945
BELR29 2,41428,7 0,29310345 1945
BULG10 0,557,5 0,61955
EST4 -2,2 81,226,5 1991
KAZ24 -1,6 1255,53 1992
ROM26 -2,4 225,91,8 1955
UKR114 0,23691,2 0,96491228 1945
LITH5 -2,8 342,71,7 1991
ARM3 -4,2 1480,70,73333333 1992
UZB22 -0,2 914,51,30454545 1992
AZER5 -3,5 714,55,52 1992
KYR4 0,1792,2 0,31992
GEO3 -6,6 453,06666667 1992
ALB1 -3,2 105,710 1955
TAJ2 -3,6 1251,71,45 1992
Hong Kong110,3 5,48,8 10,51997
Cyprus7,5 4,92,9 21,51960
Barbados1,6 0,51,9 10,31966
Bahamas3,1 1,4-1,8 12,71973
S-Korea337,9 8,24,6 1,91991
Argentina245,5 -0,57,2 7,41945
Costa Rica7 1,111,6 24,41945
Uruguay12,5 -0,145,2 16,21945
Chile43,8 3,612,1 14,11945
Singapore56,2 6,14 73,61965
Trinidad4,9 -2,89,9 23,31962
Bahrein4,3 -2,9-1,1 7,71971
Antigua0,4 5,21,5 54,21981
Panama6,6 -0,73,5 10,81945
Venezuela59,3 -0,732,4 2,61945
Saint Kitts0,2 5,42,3 40,51983
Fiji1,7 0,58,8 34,41970
Mexico335,8 -0,59,7 10,51945
Colombia49,5 1,521,9 6,41945
Thailand122,7 6,43,4 5,11946
Malaysia59,9 3,51,8 27,21957
Mauritius3,3 5,59 3,51968
Brazil458 0,32207,9 11,31945
Seychelles0,5 3,4-0,1 51,71976
Dominica0,2 4,61,6 5,71978
Belize0,5 2,95,2 51981
Algeria47,4 -0,813,9 2,21962
Botswana3,9 6,29 45,31966
Saint Vincent 0,25 -0,77,5 1980
Suriname0,4 -2136,3 10,7 1975
Saint Lucia0,5 4,40 105,51979
Grenada0,2 3,81,6 111974
Tunesia15 1,24,5 17,21956
Oman10,6 3,4-7,1 9,91971
Turkey177,1 2,467,7 0,71945
Paraguay7,1 -0,718,7 6,51945
Jamaica3,5 -0,334,6 22,71962
Dominican R9,3 0,74,2 5,21945
Sri Lanka10,7 2,78,2 8,61955
Peru34 -2,746,5 6,71945
Philippines55,2 -0,66,8 4,21945
South Africa 118,2-0,2 11,319,8 1945
Indonesia140,2 4,219,3 28,61950
Guyana0,4 -316,8 3,11966
Egypt37,2 2,810,4 121945
Maldives0,2 7,214,9 3,81965
China577,4 8,212,3 1,21945
Swaziland1 2,311,7 551968
Bolivia5,4 -0,77,6 14,71945
Guatemala11 -1,213,8 0,61945
Mongolia0,7 0,2332,4 2,51961
Honduras3,2 -0,38,9 4,71945
El Salvador7,3 0,214,1 3,21945
Namibia2,8 0,77,4 151,71990
Nicaragua1,4 -5,720,2 4,11945
Gabon5 -1,61 22,71960
Cape Verde0,3 35,9 0,81975
Morocco26,6 1,23,8 4,31956
Zimbabwe5,6 -0,336,2 66,61980
Congo2,4 -0,3-4,3 22,11960
Papua NG4,9 0,63,2 31,11975
Cameroon10,3 -2,21,1 13,81960
Kenya6,6 0,324,5 61963
Ghana7 0,125,2 4,91957
Lesotho1,3 -0,510,6 6,21966
Equatorial G 0,21,2 -1,56,4 1968
Pakistan54 3,18,6 3,31947
India263 38,1 0,51945
Zambia3,3 -3,1180 4,41964
Nigeria29 -0,124,9 5,41960
Comoros0,3 -0,41,4 0,21975
Togo1,4 -2,1-2,8 28,71960
Bangladesh25,6 2,10,2 0,71974
Tanzania2,5 0,122,5 1,11961
Cote d'Ivoire 8,4-4,6 -0,47,9 1960
C African R1,3 -1,61,5 111960
Mauritania1,1 -0,84,9 4,81961
Madagascar3 -2,613 1,71960
Nepal4 210,3 0,11955
Rwanda1,6 -1,29,7 7,81962
Benin2,2 -0,41,6 3,11960
Malawi2,1 -1,221,8 12,21964
Guinea-Biss. 0,22,8 53,50,8 1974
Gambia0,4 -0,2-1,5 9,41965
Chad1,3 3,20,6 27,91960
Burundi1,1 0,97,7 21962
Mozambique1,4 -1,546,5 0,71975
Burkina F.2,9 0,82 2,41960
Mali2,7 -13 2,81960
Sierra L.0,7 -1,532,9 51961
Niger2,3 -4,1-0,1 14,11960
Country Code absolute GNP (UNDP, 1996) economic growth 80-93, pc. and year (UNDP, 1996) inflation 93 (UNDP, 1996) FDI per GDP (UNCTAD, 1996; Business Central Europe, 1996) UN membership years (Weltalmanach, 1996, 1995)
Pearson correlation with economic grow 0,12927925 -0,17644324 0,20367008-0,0549929
Pearson correlation with human development 0,25746013 0,040351970,09799263 -0,13877401
Country Code Years of Commist Rule (Autorenkollektiv; Weltalmanach) average population growth (UNDP, 1996) mean years of schooling, population aged >25y state sector size (gov. expenditures per GDP; UNDP 1996; Weltalmanach, 1995, 1996; World Resources Institute)
Canada0 1,512,2 26
USA0 1,112,4 24
Japan0 0,910,8 16
NL0 0,911,1 54
NOR0 0,612,1 46
SF0 0,410,9 45
France0 0,712 46
Iceland0 1,29,2 33,4
Swed0 0,511,4 54
Spain0 0,86,9 35
Australia0 1,612 28
Belgium0 0,311,2 51
Austria0 0,311,4 40
NZ0 1,210,7 37
CH0 0,811,6 35
UK0 0,311,7 43
DK0 0,411 46
GER0 0,311,6 34
IRE0 0,78,9 47
ITA0 0,47,5 53
GRE0 0,77 43
ISR0 2,810,2 44
LUX0 0,710,5 45
MAL0 0,46,1 37,9
POR0 0,36,4 42
HUNG44 0,19,8 55
LATV46 0,69 43
POL44 0,88,2 38,7
RUS74 0,69 47
BELR74 0,77 33
BULG44 0,47 48
EST46 0,79 27
KAZ74 1,65 37
ROM44 0,77,1 40
UKR74 0,66 38
LITH46 0,99 20
ARM74 1,95 36
UZB74 2,95 46
AZER74 25 32
KYR74 2,35 38
GEO74 0,85 32
ALB46 2,36,2 60,5
TAJ74 3,15 44
Hong Kong0 1,97,2 20
Cyprus0 0,77 29,8
Barbados0 0,49,4 34
Bahamas0 2,76,2 20
S-Korea0 1,79,3 17
Argentina0 1,59,2 15,3
Costa Rica0 35,7 27
Uruguay0 0,78,1 29
Chile0 1,87,8 23
Singapore0 1,64 20
Trinidad0 1,38,4 33,4
Bahrein0 3,84,3 36,4
Antigua0 0,54,6 20
Panama0 2,56,8 32
Venezuela0 3,16,5 19
Saint Kitts0 -0,66 20
Fiji0 25,1 25,8
Mexico0 2,74,9 19,8
Colombia0 2,37,5 15,2
Thailand0 2,43,9 16
Malaysia0 2,65,6 27
Mauritius0 1,54,1 22
Brazil0 2,44 26
Seychelles0 1,64,6 25
Dominica0 -14,7 25
Belize0 2,44,6 29,3
Algeria0 2,82,8 40,7
Botswana0 3,32,5 40
Saint Vincent 01 4,625
Suriname0 1,14,2 51,7
Saint Lucia0 13,9 25
Grenada0 0,14,7 25
Tunesia0 2,22,1 33
Oman0 3,90,9 64
Turkey0 2,43,6 26
Paraguay0 34,9 13
Jamaica0 1,25,3 32,2
Dominican R0 2,64,3 18,9
Sri Lanka0 1,87,2 27
Peru0 2,66,5 14
Philippines0 2,67,6 18
South Africa 02,5 3,933
Indonesia0 2,14,1 19
Guyana0 1,15,1 65,7
Egypt0 2,43 47
Maldives0 2,74,5 25
China48 1,85 9
Swaziland0 2,83,8 25,4
Bolivia0 2,34 27
Guatemala0 2,94,1 11,6
Mongolia68 2,77,2 25
Honduras0 3,24 19,4
El Salvador0 2,34,2 11
Namibia0 2,61,7 40
Nicaragua0 3,14,5 40
Gabon0 2,92,6 34
Cape Verde0 1,92,2 33,1
Morocco0 2,53 28
Zimbabwe0 3,23,1 36
Congo0 2,82,1 26,1
Papua NG0 2,31 36
Cameroon0 2,61,6 18
Kenya0 3,62,3 29
Ghana0 2,73,5 21
Lesotho0 2,53,5 32
Equatorial G 01,2 0,821,1
Pakistan0 31,9 24
India0 2,22,4 17
Zambia0 3,22,7 38,1
Nigeria0 2,81,2 23,6
Comoros0 3,21 43,7
Togo0 2,91,6 31,3
Bangladesh0 2,52 12,5
Tanzania0 3,12 28,7
Cote d'Ivoire 03,9 1,931,6
C African R0 2,21,1 27,6
Mauritania0 2,40,4 33,4
Madagascar0 2,92,2 16
Nepal0 2,42,1 19
Rwanda0 3,11,1 32
Benin0 2,50,7 21,7
Malawi0 3,41,7 26,7
Guinea-Biss. 02 0,472,5
Gambia0 3,30,6 30,6
Chad0 2,10,3 32
Burundi0 2,20,4 21,5
Mozambique0 2,21,6 14,9
Burkina F.0 2,40,2 15,7
Mali0 2,60,4 29,8
Sierra L.0 20,9 23
Niger0 3,20,2 21,3

Country Code Years of Commist Rule (Autorenkollektiv; Weltalmanach) average population growth (UNDP, 1996) mean years of schooling, population aged >25y state sector size (gov. expenditures per GDP; UNDP 1996; Weltalmanach, 1995, 1996; World Resources Institute)
-0,294956926 -0,297536668 0,163301612-0,133291605
0,05070824 -0,586665524 0,8394845990,219984663
Country Code % labor force participation ratio (UNDP, 1996) % of the labour force in agriculture (UNDP, 1996; Fischer Weltalmanach, 1996) % of the labour force in industry (see: labour force agriculture) agricultural share in GDP (UNDP, 1996; Fischer Weltalmanach, 1996) structural heterogeneity (labour force share in agriculture divided by product share of agriculture; see labour force data)
Canada53 325 21,5
USA50 326 1,42,14
Japan52 734 23,5
NL46 526 41,25
NOR50 625 32
SF52 831 51,6
France44 529 31,67
Iceland56 1127 120,92
Swed54 430 22
Spain41 1233 43
Australia50 626 32
Belgium41 328 21,5
Austria46 838 24
NZ48 1025 91,11
CH53 635 32
UK50 229 21
DK57 628 41,5
GER50 438 14
IRE37 1429 81,75
ITA43 931 33
GRE42 2327 181,28
ISR39 429 31,33
LUX43 427 14
MAL37 335 31
POR49 1834 63
HUNG46 1538 62,5
LATV55 1640 151,07
POL49 2736 64,5
RUS52 1442 91,56
BELR52 2040 171,18
BULG51 1348 131
EST54 1441 81,75
KAZ47 2232 290,76
ROM46 2447 211,14
UKR50 2040 350,57
LITH52 1841 210,86
ARM48 1843 480,38
UZB39 3525 231,52
AZER42 3129 221,41
KYR41 3227 430,74
GEO49 2631 580,45
ALB48 5523 401,38
TAJ36 4123 331,24
Hong Kong51 137 11
Cyprus48 1430 62,33
Barbados51 623 61
Bahamas50 715 51,4
S-Korea46 1835 72,57
Argentina38 1232 62
Costa Rica38 2627 151,73
Uruguay44 1427 91,56
Chile38 1725 72,43
Singapore49 036 01
Trinidad39 1132 33,67
Bahrein45 230 12
Antigua47 758 418,75
Panama39 2616 102,6
Venezuela37 1227 52,4
Saint Kitts43 3024 65
Fiji34 3715 201,85
Mexico37 2824 83,5
Colombia40 2723 161,69
Thailand57 6414 106,4
Malaysia39 2123 141,5
Mauritius41 1743 101,7
Brazil44 2323 112,09
Seychelles40 918 42,25
Dominica40 2621 261
Belize31 2721 191,42
Algeria28 2631 132
Botswana44 4620 67,67
Saint Vincent 4042 1018 2,33
Suriname34 1518 141,07
Saint Lucia40 3020 112,73
Grenada40 2019 141,43
Tunesia35 2833 181,56
Oman26 4524 315
Turkey45 5318 153,53
Paraguay37 3922 261,5
Jamaica49 2523 83,13
Dominican R40 2529 151,67
Sri Lanka40 4821 251,92
Peru35 3618 113,27
Philippines40 4615 222,09
South Africa 3914 325 2,8
Indonesia44 5514 192,89
Guyana40 2121 410,51
Egypt35 4022 182,22
Maldives41 2522 241,04
China59 7215 193,79
Swaziland34 6410 125,33
Bolivia40 4013 162,5
Guatemala35 5217 252,08
Mongolia47 3223 211,52
Honduras34 4120 202,05
El Salvador36 3621 94
Namibia42 4915 104,9
Nicaragua34 2826 300,93
Gabon49 5216 86,5
Cape Verde37 4125 271,52
Morocco38 4525 143,21
Zimbabwe46 688 154,53
Congo42 4915 114,45
Papua NG49 797 263,04
Cameroon40 709 292,41
Kenya48 807 292,76
Ghana47 5913 481,23
Lesotho40 4028 104
Equatorial G 4552 1047 1,11
Pakistan35 5219 252,08
India43 6416 312,06
Zambia42 758 342,21
Nigeria40 437 341,26
Comoros44 789 392
Togo42 6610 491,35
Bangladesh49 6516 302,17
Tanzania52 845 561,5
Cote d'Ivoire 3760 1037 1,62
C African R49 804 501,6
Mauritania46 5510 281,96
Madagascar48 787 342,29
Nepal47 940 432,19
Rwanda52 923 412,24
Benin46 648 361,78
Malawi45 875 392,23
Guinea-Biss. 4885 245 1,89
Gambia50 828 282,93
Chad49 834 441,89
Burundi54 923 521,77
Mozambique53 838 332,52
Burkina F.54 922 442,09
Mali50 862 422,05
Sierra L.37 6715 381,76
Niger49 904 392,31
Country Code % labor force participation ratio (UNDP, 1996) % of the labour force in agriculture (UNDP, 1996; Fischer Weltalmanach, 1996) % of the labour force in industry (see: labour force agriculture) agricultural share in GDP (UNDP, 1996; Fischer Weltalmanach, 1996) structural heterogeneity (labour force share in agriculture divided by product share of agriculture; see labour force data)
Pearson correlation with economic growth 0,078049962 -0,1640358150,080401522 -0,419000724 0,267753459
Pearson correlation with human development 0,003201627 -0,8875330970,727801195 -0,805915475 0,04077444
human development index (UNDP) main telephone lines per 100 population (UNDP, 1996) violation of political rights (1, democracy, to 7, dictatorship) (Stiftung Entwicklung und Frieden, 1996, based on Freedom House) violations of civil rights (see political rights)
0,95158,6 11 Canada
0,9455,3 11 USA
0,93845,4 22 Japan
0,93847,7 11 NL
0,93751,5 11 NOR
0,93554,4 11 SF
0,93551,1 12 France
0,93352,7 11 Iceland
0,93368,7 11 Swed
0,93334 12 Spain
0,92946,4 11 Australia
0,92941 11 Belgium
0,92843,2 11 Austria
0,92743,6 11 NZ
0,92660,3 11 CH
0,92444,5 12 UK
0,92457,7 11 DK
0,9242 12 GER
0,91930 12 IRE
0,91440 13 ITA
0,90941,3 13 GRE
0,90834,9 13 ISR
0,89551,1 11 LUX
0,88639 11 MAL
0,87827,3 11 POR
0,855 10,71 2HUNG
0,8223,9 33 LATV
0,819 9,32 2POL
0,804 153 4RUS
0,787 16,35 4BELR
0,773 24,62 2BULG
0,749 213 2EST
0,7411,1 64 KAZ
0,738 10,54 4ROM
0,719 15,64 4UKR
0,719 21,61 3LITH
0,6817,7 34 ARM
0,679 7,17 7UZB
0,665 96 6AZER
0,663 7,35 3KYR
0,645 10,35 5GEO
0,633 1,32 4ALB
0,616 4,87 7TAJ
0,90945,9 52 Hong Kong
0,90939,2 11 Cyprus
0,90630,2 11 Barbados
0,89523,8 12 Bahamas
0,88633,3 22 S-Korea
0,8859,8 23 Argentina
0,8849,8 12 Costa Rica
0,88314,5 22 Uruguay
0,8827,4 22 Chile
0,88140,2 55 Singapore
0,87214,1 11 Trinidad
0,86619,4 66 Bahrein
0,86628,8 43 Antigua
0,8599,3 33 Panama
0,8598,1 33 Venezuela
0,85811,7 11 Saint Kitts
0,8536,2 43 Fiji
0,8457 44 Mexico
0,848 24 Colombia
0,8322,8 35 Thailand
0,8269,9 45 Malaysia
0,8256 12 Mauritius
0,7966,6 34 Brazil
0,79211,8 34 Seychelles
0,76419,4 21 Dominica
0,75410,4 11 Belize
0,7463,4 76 Algeria
0,7412,6 23 Botswana
0,73813,9 11 Saint Vincent
0,7379,4 33 Suriname
0,73312,7 12 Saint Lucia
0,72917,8 12 Grenada
0,7274,1 65 Tunesia
0,7167,6 66 Oman
0,71114,3 44 Turkey
0,7042,7 33 Paraguay
0,7024,7 23 Jamaica
0,7015,6 33 Dominican R
0,6980,7 45 Sri Lanka
0,6942,6 55 Peru
0,66511,1 34 Philippines
0,6498,8 54 South Africa
0,6410,7 76 Indonesia
0,6332 22 Guyana
0,6113,6 66 Egypt
0,613,5 66 Maldives
0,6090,7 77 China
0,5861,9 65 Swaziland
0,5842,5 23 Bolivia
0,582,1 45 Guatemala
0,5783 23 Mongolia
0,5761,8 33 Honduras
0,5762,5 33 El Salvador
0,5733,8 23 Namibia
0,5681,3 45 Nicaragua
0,5571,8 54 Gabon
0,5392,3 12 Cape Verde
0,5341,9 55 Morocco
0,5341,2 55 Zimbabwe
0,5170,7 33 Congo
0,5040,9 24 Papua NG
0,4810,3 65 Cameroon
0,4730,8 56 Kenya
0,4670,3 54 Ghana
0,4640,6 34 Lesotho
0,4610,4 77 Equatorial G
0,4420,9 35 Pakistan
0,4360,7 44 India
0,4110,8 34 Zambia
0,40,2 75 Nigeria
0,3990,7 44 Comoros
0,3850,3 75 Togo
0,3650,2 24 Bangladesh
0,3640,3 65 Tanzania
0,3570,6 65 Cote d'Ivoire
0,3550,2 34 C African R
0,3530,4 76 Mauritania
0,3490,3 24 Madagascar
0,3320,3 34 Nepal
0,3320,2 65 Rwanda
0,3270,3 23 Benin
0,3210,3 65 Malawi
0,2970,6 65 Guinea-Biss.
0,2921,6 22 Gambia
0,2910,1 65 Chad
0,2820,2 77 Burundi
0,2610,4 65 Mozambique
0,2250,2 54 Burkina F.
0,2230,1 23 Mali
0,2190,4 76 Sierra L.
0,2040,1 34 Niger
human development index (UNDP) main telephone lines per 100 population (UNDP, 1996) violation of political rights (1, democracy, to 7, dictatorship) (Stiftung Entwicklung und Frieden, 1996, based on Freedom House) violations of civil rights (see political rights) Country Code
0,3467520810,288899818 -0,212719009 -0,241147216Pearson correlation with economic growth
0,737399726 -0,553989633 -0,593538789Pearson correlation with human development
country code total fertility rate (UNDP, 1996) military expenditures per GDP (UNDP, 1996) EU membership years (Fischer Weltalmanach, 1995, 1996
Canada1,9 1,70
USA2,1 4,30
Japan1,5 10
NL1,6 2,139
NOR1,9 3,10
SF1,9 22
France1,7 3,339
Iceland2,2 00
Swed2,1 2,52
Spain1,2 1,611
Australia1,9 2,30
Belgium1,6 1,739
Austria1,5 0,92
NZ2,2 1,10
CH1,6 1,60
UK1,8 3,424
DK1,7 1,924
GER1,3 239
IRE2,1 1,224
ITA1,3 2,139
GRE1,4 5,716
ISR2,9 9,50
LUX1,7 1,239
MAL2,1 10
POR1,6 2,611
HUNG1,7 1,60
LATV1,6 3,80
POL1,9 2,50
RUS1,5 9,60
BELR1,7 2,20
BULG1,5 2,50
EST1,6 3,80
KAZ2,5 3,50
ROM1,5 2,90
UKR1,6 2,10
LITH1,8 3,90
ARM2,6 3,10
UZB3,9 2,40
AZER2,5 8,70
KYR3,7 1,40
GEO2,1 2,40
ALB2,9 2,70
TAJ4,9 40
Hong Kong1,2 2,80
Cyprus2,5 5,40
Barbados1,8 0,80
Bahamas2 0,50
S-Korea1,7 3,60
Argentina2,8 1,70
Costa Rica3,1 0,50
Uruguay2,3 2,50
Chile2,5 3,50
Singapore1,7 4,80
Trinidad2,4 1,40
Bahrein3,8 5,50
Antigua2,6 0,80
Panama2,9 1,20
Venezuela3,3 1,60
Saint Kitts2,6 2,80
Fiji3 1,50
Mexico3,2 0,70
Colombia2,7 2,30
Thailand2,1 2,60
Malaysia3,6 3,90
Mauritius2,4 0,40
Brazil2,9 1,60
Seychelles3,6 2,90
Dominica3,6 3,80
Belize4,2 1,90
Algeria3,9 2,70
Botswana4,9 4,60
Saint Vincent 3,63,8 0
Suriname2,7 2,80
Saint Lucia3,6 3,80
Grenada3,6 3,80
Tunesia3,2 1,40
Oman7,2 15,90
Turkey3,4 3,20
Paraguay4,3 1,40
Jamaica2,4 0,90
Dominican R3,1 1,10
Sri Lanka2,5 4,70
Peru3,4 1,80
Philippines3,9 1,40
South Africa 4,13,3 0
Indonesia2,9 1,40
Guyana2,6 1,40
Egypt3,9 5,90
Maldives6,8 3,80
China2 5,60
Swaziland4,9 3,80
Bolivia4,8 1,40
Guatemala5,4 1,10
Mongolia3,6 2,80
Honduras4,9 1,30
El Salvador4 1,90
Namibia5,3 2,20
Nicaragua5 20
Gabon5,3 2,30
Cape Verde4,3 0,90
Morocco3,8 4,30
Zimbabwe5 3,50
Congo6,3 1,70
Papua NG5,1 1,10
Cameroon5,7 1,40
Kenya6,3 2,20
Ghana6 0,90
Lesotho5,2 3,20
Equatorial G 5,91,4 0
Pakistan6,2 6,90
India3,8 2,80
Zambia6 10
Nigeria6,5 3,10
Comoros7,1 3,50
Togo6,6 2,70
Bangladesh4,4 1,80
Tanzania5,9 3,50
Cote d'Ivoire 7,40,8 0
C African R5,7 20
Mauritania5,4 2,70
Madagascar6,1 0,80
Nepal5,4 1,10
Rwanda6,6 7,70
Benin7,1 1,50
Malawi7,2 1,10
Guinea-Biss. 5,83,3 0
Gambia5,6 3,70
Chad5,9 2,60
Burundi6,8 30
Mozambique6,5 7,10
Burkina F.6,5 1,60
Mali7,1 30
Sierra L.6,5 4,40
Niger7,4 0,90
country code total fertility rate (UNDP, 1996) military expenditures per GDP (UNDP, 1996) EU membership years (Fischer Weltalmanach, 1995, 1996
Pearson correlation with economic growth -0,265786013 0,1164648650,141044203
Pearson correlation with human development -0,874976956 -0,0405167660,330662276

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Wallerstein M. (1989), 'Union Organization in Advanced Industrial Democracies' American Political Science Review, 83, 2, June: 481-501.

Walton J. and Ragin Ch. (1990), 'Global and National Sources of Political Protest: Third World Responses to the Debt Crisis' American Sociological Review, 55: 876-890.

Ward K.B. (1985), 'The Social Consequences of the World Economic System. The Economic Status of Women and Fertility' Review, 8, 4, Spring: 561-93.

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Subject Index

(+ all countries HDR, 1995)

ACDA (Arms Control and Disarmament Agency, United States Department of State

adjustment

age of democracy

aggregate net transfers

alphabetisation rate

ASEAN (Association of Southeast Asian Nations)

asylum and refugees

BBW(R) (Non-Partisan Bloc for Reform, Polish political party, formed by President Lech Walesa)

big landholding

Bosnia

budget surplus/deficit

Catholicism

CEFTA (Central European Free Trade Area (as of 1.9.1995, Czech Republic, Slovak Republic, Poland, Hungary)

child mortality rate

China

CIS (Community of Independent States in the ex-USSR)

Confucianism

CO2

Croatia

C.S.O. (Central Statistical Office of the Polish Republic)

CR (Czech Republic, from 1. 1. 1993 onwards)

continuity of bureaucratic social welfare patterns

foreign capital

transformation strategy

CS (Czechoslovakia until 31. 12. 1992, included the now independent Slovak Republic)

deforestation

dependency theory

static versions

dynamic versions

destabilisation index

DYN HD (growth of life expectancy over time)

EC (European Community, now: EU)

economic growth

ECU (European Currency Unit)

ENCONS (energy consumption per capita)

EO/AA (equal opportunity and affirmative action laws in the United States of America)

ethno-linguistic fractionalisation

ethno-political conflict (EP)

EU (European Union, per 1.9.1995 15 member states)

years of membership in the Union

EURATOM (Atom Energy Agency of the European Union)

EXCEL (computer software)

F (productivities)

FAILUREDEM (failure of demographic transition, index constructed from time series regressions about fertility rates over time)

fertility rate

FLACSO (Facultad Latinoamericana de Ciencias Sociales, Santiago)

fordism

foreign debt

GDP

GEI (Gender Empowerment Index, see also gender issues)

gender issues

years of female voting

share of women in parliaments

share of women in employment

gender empowerment index

gender-related development index

global economy

current account imbalances

patterns of growth and investment

peripherisation

globalisation

GNP (Gross National Product)

goverment

consumption

expenditures

left governments in power

greenhouse

effect

index

G-24

HD(I) (Human Development Index)

HDR (Human Development Report published each year by the UNDP)

hegemonial cycle

human capital formation and education

Huntington Index

IBM

ILO

IMF

income concentration

share of richest 20% in total incomes

Indian Ocean rim

industrial employment

industrial waste

inflation

Islam as a world religion

Islamic traditions

Islamic fundamentalism

IST (political instability according to S. P. Huntington)

Judaism

Kondratieff cycles

KPN (Confederation for an Independent Poland)

Kuznets curve

LDCs (less developed countries)

liberalism

life expectancy

life expectancy increases over time

M (Imports)

market size

maternal mortality rate

Matthew's effect

migration

military

expenditures

transfers, arms transfers

personnel ratio

mixed enterprises

MNC (Multinational Corporations)

MNC penetration

modernisation theory

classic contributions

rediscovery

money laundering

NAFTA (North American Free Trade Area)

nationalism

traditions of nationalism

theories of nationalism

recent increases of nationalism

NATO (North Atlantic Treaty Organization)

new international division of labour

vulnerability of states vis-à-vis

NOX

OECD

Pacific rim

Poland

Catholic traditions

excess mortality patterns

political cleavages

postcommunism

regional discrepancies

weakening of the social and political centre

political instability

measurement

prediction of

theories

population

growth

density

private landholding

private peasants

privatisation

Protestantism

PSL (Polish Peasant Party)

public investment

REPRESS (Index of civil rights violations, in excess of political repression (index construction by linear regression analysis)

RGP (linear standard regression procedure of the EXCEL 4.0 programme)

RKP (non-linear standard regression procedure of the EXCEL 4.0 programme)

Russia

assertive foreign policy

predictions of future development

trajectory in the world system

Serbia

S.J. (Jesuits Fathers)

SLD (Polish Post-Communist Party)

Slovenia

SM (social mobilisation according to S. P. Huntington)

small states

social reform as a strategy of ascent

social security

social insurance programme experience index

social security benefits expenditure

social reform theories

SO2

Taiwan

terms of trade

TNC (Transnational Corporations)

total area

trade dependency

traditions of male prejudice in some Muslim societies

unequal exchange

UN(O)

UNDP

UN ECE

UNICEF

union density

UK

unemployment

urbanisation

premature urbanisation

USA

USSR

UP (Polish Political Party: Labour Union)

UW (Polish Political Party: Freedom Union)

violations of political rights

violations of civil rights

wage rate

WDR (World Development Report, document, published each year by the World Bank)

world political threats

world systems theory

X (exports)

Author's Index

Achen Ch. H.

Adamczyk F.

Addo H.

Ahluwalia M.S.

Akerman J.

Almond G.

Amin S.

Ammon G.

Amnesty International

Amsden A.H.

Angresano J.

Apter D.

Ardelt R.

Arnold E.

Arrighi G..

Aslund, A.

Austrian Federal Ministry for Foreign Affairs

Austrian Federal Ministry of Labour and Social Affairs

Axtmann R.

Balibar E.

Bandt J. de

Bank Austria

BBC World Service

Baran P. A.

Barnes S.H.

Beaud M.

Beck N.

Becker G.

Beckerman W.

Bello W.

Benard Ch.

Bergesen A.

Bernal-Restrepo S. Societas Jesu

Berry A.

Betz J. and Matthies V. (Eds.)(1992), 'Jahrbuch Dritte Welt 1992' Munich: C.H. Beck

Betz J.

Bhagwati J.N.

Birdsall N.

Blaas W.

Bornschier V.

Boswell T.

Botz G.

Bradshaw Y.

Brenner R.

Brown J.F.

Brown L.R.

Bruno M.

Bullock B.

Bundesministerium fuer Arbeit und Soziales

Bundesministerium fuer Landesverteidigung, Landesverteidigungs-akademie Wien

Bush K.

Burant St.R.

Cardoso F.H.

Central Statistical Office of the Polish Republic

Chaloupek G.

Chase-Dunn Ch.K.

Choucri N.

Clark R.

Clarke D.L.

Clauss G.

Cline M.

Clinton B.

Cohen R.

Cohn-Bendit D.

Commission of the European Communities

Cordova A.

Cornia G.A.

Crenshaw E.

Datta A.

David A.

Deacon B.

Deshingkar G.

Deutsch K.W.

Dixon W.J.

Doran Ch.F.

Dubiel I.

Dunn J.F.

Economist

Ehrlich S.

Ellacuria I. Societas Jesu

Elsenhans H. (Ed.)

Engelbrekt K.

Ernst D.

Esping-Andersen G.

Feder E.

Fiala R.

Firebaugh, G.

Flechsig St.

Foxley A.

Foye St.

Frank A.G.

Friberg M.

Froebel F.

Fukuyama F.

Gabrisch H.

Galganek A.

Galtung J.

Gardawski J.

Gartner R.

Gerlich P.

Gilpin R.

Goble P.

Goldfrank W.L.

Goldstein J.S.

Gonzales Casanova P.

Gore A.

Gourevitch P.A.

Gray C.S.

Griffin K.

Grosser I.

Gurr T.R.

Haas E.B.

Hausner J.

Hertoghe A.

Hettne B.

Hickmann Th.

Hilferding R.

Hinnells J.

Hoell O.

Holst J.J.

Holy Bible

Hopkins T.K.

Huebner K.

Huntington S.P.

Inotai A.

Inoguchi T.

Institute of Labour and Social Studies (Warsaw)

International Labour Office

Jackman R.W.

Janacek K.

Janos A.C.

Janowska Z.

Jenkins R.

Jodice D.H.

John Paul II, Pope

Juchler J.

Kabashima T.

Kaldor M.

Kalecki M.

Karatnycky A.

Kasarda J.D.

Katzenstein P.J.

Kawato A.

Kay C.

Keman H.

Kennedy P.

Kent G.

Kent N.J.

Keynes J.M.

Khoury A.Th.

Kiljunen K.

Kleinknecht A.

Klitgaard R.

Komlosy A.

Korcelli P.

Kondratieff N.D.

Korpi W.

Kothari R.

Koydl W.

Kriz J.

Krzysztofiak M.

Kurth J.R.

Kurz R.

Kuznets S.

Lapid Y.

Launer E.

Leggett J.

Le Monde

Lepingwell J.W.R.

Levy J.S.

Levy-Pascal E.

Lewis Sir W.A.

Lewis-Beck M.S.

Linder S.B.

Linnemann H.

Lipset S.M.

Lipton M.

London B.

Luif P.

Lynch A.

Mc Sweeny B.

Maerz E.

Magenheimer H.

Malcolm N.

Mandel E.

Mariateguí J. C.

Marin B.

Martin K.

Martin P.

Marx K.

Meier G.M.

Michelsen G.

Michna W.

Microsoft Excel

Mihalka M.

Millard F.

Mittelman J.

Mizgala J.J.

Moaddel M.

Modelski G.

Monatsberichte des Oesterreichischen Instituts fuer Wirtschaftsforschung

Moon B.E.

Morawetz R.

Mueller G.P.

Munoz O.

Myrdal G.

Nelson D.N.

Neue Zuercher Zeitung (current issues).

Nohlen D.

Nollert M.

Nolte H.H.

Nowotny Th.

Nuscheler F.

Odom W.

Oesterreichischer Arbeiterkammertag

Olbrich E.

Olson M.

Opitz P. J.

Opp K.D.

Pelinka A.

Petrella R.

Pfister U.

Piore M.

Podolec B.

Polanyi, K.

Polish Institute of International Affairs

Pollack M.

Popper Sir K.

Poulantzas N.

Prader H.

Pradetto A.

Prebisch R.

Preston P.W.

Przeworski A.

Rabinbach A.

Raffer K.

Ragin C.C.

Rahr A.

Raith W.

Ray J.L.

Reich R. B.

Research Centre for Economic and Statistical Studies of the Central Statistical Office and the Polish Academy of Sciences

Robinson T.D.

Roehrich W.

Rode R.

Rosecrance R.

Rostow W.W.

Ross R.J.S.

Rothschild K.W.

Rummel R.R.

Russett B.

Sabbat-Swidlicka A.

Sachs J.

Saffioti H.B.

Salzburger Nachrichten (current issues).

Schade W.

Scharpf F.W.

Schmidt M.G.

Schmidt P.G.

Schumpeter J.A.

Seager J.

Seers D.

Senghaas D.

Sell R.R.

Shafik N.

Shlaes A.

Silver B. J.

Simatupang B.

Singer P.I.

SIPRI

Slater W.

Slay B.

So A. Y.

Srubar I.

Stankovsky J.

Stark O.

Stauffer R.B.

Steger H. A.

Stephens J.D.

Stiftung Entwicklung und Frieden

Stokes R.G.

Swoboda H.

Sunkel O.

Suter Ch.

Szlajfer H.

Taggart P.

Talos E.

Tausch A.

Tausch K.

Taylor Ch.L.

Teague E.

Tedstrom J.

Thee M.

Therborn G.

Thompson W.R.

Tibi B.

Tilton T.A.

Timberlake M.

Tolz V.

Transition (OMRI Prague)

Treiman D.J.

Tyson L.D'A.

Ulrich Ch.J.

United Nations Department of International Economic and Social Affairs, Statistical Office

United Nations Development Programme

United Nations Development Programme Warsaw

United Nations Economic and Social Council

United Nations Centre on Transnational Corporations

United Nations Economic Commission for Europe

United States Arms Control and Disarmament Agency

United States Central Intelligence Agency

United States Department of State

Vaerynen R.

Vinton L.

Wallerstein I.

Walton J.

Ward K.B.

Weber R.Ph.

Weede E.

Weydenthal J.B.

Wimberley D.W.

Winckler G.

Wishnevsky J.

Woehlcke M.

Wolf K.D.

Wolffsohn M.

Wollenberg J.

Wood A.

World Bank

World Economy Research Institute Warsaw and International Centre for Economic Growth, San Francisco

World Resources Institute

Yasmann V.A.

Zielonka J.

Zienkowski L.

Zimmerman E.

Zentner Chr.

Zoethout T.

Zolberg A.R.