East European Capitalism in the Making
Eastern Europe has made its way toward capitalism without social explosions, according to the author, in large part because of three-way partnerships among government, employers, and labor that formally negotiated critical employment and social issues. Unlike the corporatism of postwar Europe, which was built on settled institutions that allowed the state eventually to recede into the background, the eastern European version has been constructed on the fly, functioning to sort out and legitimate the voices of labor and the employers. Iankova compares in detail the Polish and Bulgarian experiences, both of which benefited from different versions of this tripartite cooperation. Her analysis is particularly innovative in tracing the way "tripartism" has repeated itself at the regional level and then looped back to the national level. Integration into the European Union, she expects, will challenge central and eastern Europe's brand of corporatism but it will not destroy it -- assuming the EU reforms its own version.
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War-ravaged Bosnia has come a long way since the 1995 Dayton Accord. But Bosnia's stability rests on the West's large-scale involvement. Integration remains an unfulfilled hope. When foreign aid tapers off, as it soon will, Bosnia's economy will grind to a halt without major reforms. The world should safeguard Dayton's biggest success -- ending Europe's bloodiest war since World War II -- but hand Bosnia's political and economic future back to Bosnians.
The conviction is widely held in German political circles today that a phase of postwar development is ending and that the Federal Republic is approaching a new era of political, social and economic challenge. The reconstruction achieved in the years after the war led to a remarkable economic upsurge. But that success cannot make us overlook the continuing failure to solve our most outstanding political problem-that of reunification. A great deal of German energy and much-touted German industriousness has spent itself in the market place, while-for whatever reason-our number-one political problem has hardened in its status quo. The oft-cited "German phoenix" which rose out of the ashes has actually been paralyzed in one wing.

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