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Introduction

  1. The Group of Countries

  2. Directions

  3. Reorganization of Local Government

  4. Basic Organizational Models

  5. Concluding Remarks
     

1 The Group of Countries

The selection analyzed in this volume is concentrated on eight countries previously belonging to the communist block, which are, broadly speaking, historically and currently similar in political and economic development. Geographically, the group forms the western border of the formerly political "Eastern Europe." Of course, this is not correct in an absolute way; East Germany is omitted due to its special status evolving from German unification. But our selected area consists mainly of two parts—the Baltic states and the narrower "Central" Europe—plus Slovenia. Six of the group—Slovenia, Estonia, Latvia, Lithuania, Slovakia and the Czech Republic—have new or renewed independence. Only Poland and Hungary have been preserved in entity and integrity from the former period. All eight are unitary countries. Common but not necessarily exclusive features of the group follow:

  • market-oriented economic development after 1990;
  • political democratization and pluralism;
  • strong aspirations towards and a relatively strong possibility for European Union (EU) membership in the near future;
  • preparation of and progress in introducing major social reforms.

Table 1.1

General Data on Central European Countries

Country

Population (millions)

1995

Surface Area (thousands of square kilometers)

GNP per Capita: Average Annual Growth (%) 1985-95

GNP per Capita (USD)

1998

Average Annual Inflation (%)

1985-95

Inflation (%)

1998

Estonia

1.5

45

-4.3

3,390

77.2

10.6

Latvia

2.5

65

-6.6

2,430

72.5

4.7

Lithuania

3.7

65

-11.7

2,440

5.1

Poland

38.6

313

1.2

3,900

91.8

11.8

Czech Republic

10.3

79

-1.8

5,040

12.2

10.8

Slovakia

5.4

49

-2.8

3,700

10.6

6.8

Hungary

10.2

93

-1.0

4,510

19.9

14.3

Slovenia

2.0

20

9,760

8.0

Sources: The World Bank, World Development Report (Oxford: Oxford University Press, 1997), 215, 217, 247, and (1999), 230-231; Central European Economic Review (September 1999): 26-27; Wiener Institut für International Wirtschaftsvergleiche, Handbook of Statistics: Countries in Transition (1995), reprinted in Felzárkózás Európához (Budapest: Központi Statisztikai Hivatal, 1996), 49.

Table 1.2

Gross Domestic Product of the Economies of Central European Countries

 

GDP per capita (USD) 1998

GDP Growth (% ) 1998

GDP Growth (%) 1999 estimate

GDP Growth (%) 2000 estimate

Latvia

2,560

3.6

1.0

2.0

Lithuania

2,892

5.1

0.5

2.5

Estonia

3,447

4.0

0.5

2.5

Poland

4,075

4.8

3.5

4.5

Czech Republic

5,350

-2.3

-1.2

2.0

Slovakia

3,741

4.4

1.5

2.5

Hungary

4,676

5.1

3.9

4.0

Slovenia

9,899

3.9

2.7

3.5

Source: Central European Economic Review (September 1999): 26-27.

Some comparisons can be drawn from the aggregate statistical data presented in tables 1.1 and 1.2. The state of economic development is rather common for these generally small-sized countries (Poland being an exception). However, the levels of gross national product (GNP) substantially differ.

Very relevant is economic downturn during the transitive period, which is evident for every country, teamed by a relatively high rate of unemployment. Such data demonstrate the expenses of structural change. The inflation rate for 1997 compared to that of the former decade, although still high, shows that these countries have experienced recovery from the shock of changes in economic and fiscal policy.

Another basic analogy is that the more consolidated and wealthy countries of the late federations have fared well despite amputation from their former political and economic systems. The collapse of the Soviet Union, Yugoslavia and Czechoslovakia also demonstrates the clear will for autonomy in this region. In the 1990s, the traditional forced integration of the past was avoided.

As quoted so often, the introduction of political transition was very rapid. Poland took almost ten years; for Hungary, ten months was enough; in East Germany, ten weeks; and in Czechoslovakia, ten days of "velvet revolution." The key contextual factor of course was the waning of the Soviet Union’s influence. After the political upheavals of 1989 and 1990, all of the countries in the group addressed economic and other systemic bases for the transformation with various levels of intensity.

The political process has been continuous in the overwhelming majority of these countries. Therefore, western involvement has had crucial effect, including influence on the choice of models for building democratic systems. However, a new, nearly unprecedented model of and framework for integration has become increasingly attractive in these countries— namely, towards a "western-type Europe." Escape from former bonds has not seemed to hinder the pursuit of new opportunities for cooperation. Nowadays the common foreign policy objective among the countries discussed here is the desire to join the EU. The components of such strategy affect particular areas of internal policy as well.

The introduction of a new democratic and plural model at the local level was very important as the first step of transition. The European Charter of Local Self-government summarized the minimum requirements for preparing and establishing new institutions, which promoted the widely accepted essence of such development from both a structural and legal point of view. Most of the countries in this region realized the importance of adaptation to these principles and signed the charter in the mid-1990s, affirming the desire to follow the West European tradition of local governance. The process is not simple in every aspect, although the charter allows some flexibility for prospective member countries. Professional and public debate ensued in many countries of the region concerning whether the charter’s prescriptions really ensured coherent development or if the moderate cosmetic changes necessary for compliance actually disguised traditional corruption and antidemocratic phenomena.

Such debates are interesting from another aspect as well. The whole process of reform exhibited numerous changes of direction in the 1990s. As will be demonstrated later in this study, attempts to group countries according to the systems they have adopted are quite problematic, since such analogies will probably become defunct as the trajectory of transition continues to shift country by country in the coming years. In all of these countries debates have been nearly continuous concerning the question of which route of modernization to follow and which model to adopt. Thus, identifying "typical" features and creating subgroups should be understood as temporary. A better way to a more thorough analysis is to typify national reforms and the route of attempts as a whole.

Thus, when studying the direction of administrative reform, models vary not only country by country, but period by period. National directions for public administrative system building are dependent on policy preferences to a large extent. Due to the fluid and quite sensitive political balance existing in Central Europe, changes in conceptual issues are made relatively often concerning local government reform. This statement can be illustrated by three examples.

1. According to some authors (Regulska 1996, Grochowski 1997) the local reform and democratization process in Poland reached stagnation in the mid-1990s (though some local experiments with new models continued), breeding disillusionment. Debate was continuous during this period concerning the appropriate number of levels for the territorial administrative and local government systems. Territorial division before the last crucial change in 1999 instigated further discussion among political factions, and as a consequence, the draft version of the reform program was amended, altering the number of tiers and their governing rights. Thus, crucial politico-administrative changes occurred while the transformation was in process.

2. Another example of "internal" criticism resulting in a subsequently altered trajectory for transition is found in Lithuania. Crucial reform revisions were initiated in 1995, replacing the formerly conceptualized two-tier system of local government with a single tier. Additionally, strong criticism emerged concerning the comprehensiveness of change. According to Gazaryan (1995), the development of local government in the first five years resulted in neither the improvement of public services nor the involvement of the populace in decision-making.

The motives for such criticism are two-fold. First, discussions concerning the administrative structure of the system are of particular importance to party factions that view these changes from the standpoint of influence gain or loss. Second, those who have found the reforms to be insufficient feel that there is a "democratic deficit" in the process; citizens' opinions have not yet been heard and incorporated into the local government reform plan.

3. Finally, the Czech example should be mentioned. This country has quite radically reformed its institutions and mechanisms of local democracy. Municipalities have taken over all self-governing functions, and the division of power is quite clear between state administrative and local government offices. However, debate on the establishment of an intermediate government tier has ensued for a decade (Vidlaková 1997). Subsequently, from the year 2000, this concept will be realized in practice.

Despite relatively often-changing conceptions, there are common directions and different models that may be classified. Nevertheless, strong coherence and consistency should not be expected in the long run.

LGI / Publications / Books / Decentralization


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