Class Notes (836,580)
Canada (509,856)
History (261)
HIST 106 (65)
Lecture

Hist 106 Lecture 24.doc

5 Pages
40 Views
Unlock Document

Department
History
Course
HIST 106
Professor
Paul Garfinkel
Semester
Fall

Description
Lecture 24 – Europe Since 1989 [1] Why were reforms so painful in the post-1989 East? “The morning after” • State building is hard to do – nations had to rebuild like they did in 1919 or 1945 • Once you topple a government it’s hard to make a new one work and make it binding • Those who rose up had no experience • Civil society had to be made and re-made − How would welfare work? − How to create belonging? − What about minorities? • How do you make these changed work and get people to view the new system as legitimate Scale • In the free market economic productivity is down because government subsidies reveal the inefficiency of production − Unemployment at 15% in countries where unemployment was unknown • State building is different because there are no more controls and no more subsidies • Industry goes down because it’s privatized and most people remain poor, a few get rich. • Huge deficits and people need social benefits at the time when they are hardest to acquire. • Inflation goes up because governments have to borrow Economic chaos = political chaos • Governments fragment • Reformers jump ship – the rhetoric was easy but governing is difficult • In 1991 you could choose from 72 parties in Romania • Ex-communists are winning elections – the Polish president lost an election to and ex- communist official − People were hard up − Communists in the Balkans never really went away – they became “converts.” − People lacked a democratic heritage o In 1990 East Germans had not voted in 58 years − People wanted quick results The trends were pronounced in Russia – Yeltsin created “shock therapy.” • Privatization • Free markets without controls or subsidies − Health care collapses − Unemployment up and inflation up • Russian mafia emerges – organized crime becomes popular – there was no monetary or legal framework so profiteering was very easy • In 1994 the private sector was dominating industry – 62% of Russia’s GDP • Economy suffers, by 34 % by 1998 and the rubble is devalued 74% • Huge wealth disparity • 1990’s cynicism runs high. The market economy has come to equal corruption and impoverishment Was it democracy? • Yeltsin had limitless powers − Parliament destroyed in 1993 − A constitution in 1993 that created a presidential regime – the answer to problems was to dissolve parliament and get more central power − Parliament locks themselves into the White House − Yeltsin bombs the building killing his opposition − Becomes a presidential regime where the PM answers to the president, not the parliament Why hang on to this system? • Lure of capitalism strong enough to trump radicalism • No ex-communist regimes had turned extremist or went against free market principles • Czech. Republic and Poland had done well by joining the EU • There was a strong desire in the East to belong to the EU and capitalism • In January 2007 Romania, Bulgaria join the zone, making 27 countries, 17 of which
More Less

Related notes for HIST 106

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit