| The Vienna Institute for International Economic Studies - WIIW |
Forced policy adjustments in Romania, Bulgaria and the Czech Republic
have created some room for sustainable improvements. High growth in Poland
and Slovakia, amidst deteriorating current account deficits, may require
some policy adjustments. Steady, if unspectacular improvements are observed
in Hungary and Slovenia. The output decline is coming to an end in Russia,
but not yet in Ukraine.
Estonia: The Number One candidate of the Baltic countries to join the EU
Estonia exemplifies that radical structural reforms pay off when they
are consistent; it has recently been picked by the European Commission
as the only Baltic state fit enough to start entry negotiations with the
European Union. The country has achieved a high level of stability, though
in 1997 it started displaying textbook features of an overheating of the
economy with a gaping current account deficit and inflation picking up
in an environment of rapid economic growth.
Poverty in China
Despite China's spectacular progress in poverty eradication since 1978,
the latter has remained an important policy goal. Poverty in China has
different features in rural and urban environments. The persistence of
endemic poverty in isolated regions and the political implications of anyhow
increasing regional disparities call for renewed commitment as well as
new strategies to fight the problem.
'You cannot fool the fundamentals'
High trade and current account deficits in most transition economies
alert to possible currency crises in a number of countries. The comment
argues that exchange rate movements are mainly caused by current account
considerations rather than by speculations in the financial markets.
A vote for change in Montenegro?
The recent presidential elections in Montenegro have ended with a close
victory of a pro-reform candidate.