Eastern Transition and Western Unity Research
All papers must be written in 12-point font, double-spaced, 1 inch margins, with title page and bibliography (APA or Chicago format). Do not forget to put your name, date, and ID number on your papers.
The format is to include a cover page, four pages of text (tables and graphs, etc. may be embedded or annexed), and a bibliography which is to include at least two sources in addition to those noted for the topic
Papers are to present an understanding, insights and conclusions on the economic issues that are manifested in the economic challenges, opportunities, and public policy problems and solutions that arise in the eras covered in the weekly topics.
They are NOT to be simply a recitation or description of historical events.
The reading source is as follow:
Aldcroft Ch. 12, pp. 319 - 343 (The European Economy Since 1914, 5th ed.)
Eichengreen, Ch. 6, 163 – 197;Ch. 7, pp. 198 - 224 (The European Economy Since 1945 (2007 ed.))
Berend, Ch. 8, pp. 190 - 262 (An Economic History of Twentieth Century Europe)
there is specific topic requirment：
Eastern Transition and Western Unity
What were the immediate economic factors leading to the political developments of the 1989 – 1991 period? How did the EU prepare for them? What were the economic implications of an enlarged European Union? How did the EU respond to them, over the following decade?
Eastern Transition and Western Unity
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Eastern Transition and Western Unity
During the 20th century, Europe was politically and economically shattered by the two world wars and the great depression (Aldcroft & Morewood, 2012). The reasonably stable status was first crushed by the outbreak of World War I which exposed political relations and international development to a significant impact. During this period, very few acknowledged what that impact was going to do to economic and social relationships in Europe. However, the war destroyed the European equipoise and also exhausted her strength which exposed her economic system to external shocks. In 1945, the Second World War found Europe in a fragile state, and this resulted in massive loss of life as well as physical destruction (Eichengreen, 2008). Also, the European map was divided again resulting in significant power blocs between the Eastern and Western Europe. Nevertheless, economic progress started in 1945, and many things were expected to catch-up such as labor reallocation, capital formation and effective use of factors of production (Eichengreen, 2008). These programs were facilitated by the trade unions, consistent employees as well as the governments that worked together to stabilize wages and mobilize savings. Accordingly, the understudy explores the economic factors that led to political developments of 1989- 1991 period and how the European Union prepared for them. It also sheds light on the economic implications of an enlarged EU and how the European Union responds to them.
Economic Factors that Led to Political Developments of 1989- 1991
After World War II came to an end in 1945, Europe was subdivided into Eastern and Western Europe (Eichengreen, 2008). The Eastern region was under the Soviet Union which completely separated them from the West until its decline in the late 1980s (Eichengreen, 2008). In 1989, political activities were restricted for non-sanctioned organizations and civic groups which resulted in the revival of the civil society (Eichengreen, 2008). However, in Central and Eastern Europe, the gap between the masses and the political leaders strengthened the distance between the ruled and rulers. The increased number of populations, for instance in Czechoslovakia, East Germany and Bulgaria increased the urge for political and economic reform.
Macroeconomic stabilization was one of the economic factors that led to 1989 political developments (Roaf et al., 2014). The Central and Eastern Europe had experienced a prolonged period of a weak economy and low inflation following the massive adverse shock. These regions required radical economic reforms. Although monetary policies had been created, they could not rebalance and restructure the economy. During this period, Poland was the leading state with the highest external debt and economic growth were not experienced in the 1980s (Roaf et al., 2014). It also had the lowest GNP and a monetary overhang of 0.9 (Roaf et al., 2014). These factors influenced the CEES to integrate with the European Community to balance the budget and impose macro stabilization.
Foreign trade liberalization was another factor that influenced political developments. International trade liberalization was a strategy that the governments wanted to utilize to expand exportation levels (Roaf et al., 2014). Unlike imported orders, exports in Central and Eastern Europe took time to find export markets. During the Soviet Union, exports advertisement was very common, although the substantial activity was import. However, exports practices were expected to become easier after the transition. The government planned to do away with all quantitative restrictions but also retain some tariffs. The advantage of foreign trade liberalization is maintaining the right price signals for long-term investment (Roaf et al., 2014).
After the fall of the Soviet Union in ...