Jože Mencinger

From Socialism to EU Membership

16 pages · 4.80 EUR
(November 2007)

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Jože Mencinger observes similarities in key aspects of the transformation policies in Central and Eastern Europe. For him, existing differences are due to prevailing political rather than economic circumstances. Slovenia differed from the rest by its consistent reluctance to adopt a strategy led by foreign direct investment (FDI). The outcome of transition was different in Slovenia as well. Slovenia shows a balanced current account and much higher social cohesion than the rest of the region. The general trend has been rapid growth that has been accompanied by high current account deficits, a high degree of externalization of key assets and high unemployment. With entry into the EU, the countries “have lost many attributes which characterize a country as an economic entity: the right to control the flow of goods, capital and people over the border, to create the rules of the economic system, and sovereignty in macro-economic decision making”. The Central and East European countries have not been assisted to the same degree as Mediterranean countries in catchingup with center states.