Introduction to Economic Issues: Political Economy of Transition in the Czech Republic

The course deals with issues of transition from socialism to market economy and democracy in Central and Eastern Europe. It will cover topics ranging from the characteristic properties of classical socialism: political structure, ownership, co-ordination mechanisms, growth pattern, investment, prices, wages and employment in the system. The course then discusses inducements for reforms and experiments with market socialism. The main focus is issues of transition: political transformation, economic stabilization, privatization, corporate governance issues, changes in employment, income distribution and social security. The course analyzes political aspects of the transition process and identifies the main political constraints of economic decisions taken by transition countries. Finally, the course focuses on the accession of transition countries to the European Union, on its economic and political aspects. Basic principles of EU economic policies are discussed and framed into the transition process of Central European countries.