Search

Begin New Search Publication Year within 5 Years

1631. The evolution of Belarusian public sector: From command economy to state capitalism?

Author:
Aliaksandr Papko
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center for Social and Economic Research - CASE
Abstract:
Belarus was among the few post-communist countries to resign from comprehensive market reforms and attempt to improve the efficiency of the economy through administrative means, leaving market mechanisms only an auxiliary role. Since its inception, the ‘Belarusian economic model’ has undergone several revisions of a de-statisation and de-regulation kind, but still the Belarusian economy remains dominated by the state. This paper analyses the characteristic features of the Belarusian economic system – especially those related to the public sector – as well as its evolution over time during the period following its independence. The paper concludes that during the post-Soviet period, the Belarusian economy evolved from a quasi-Soviet system based on state property, state planning, support to inefficient enterprises and the massive redistribution of funds to a more flexible hybrid model where the public sector still remains the core of the economy. The case of Belarus shows that presently there is no appropriate theoretical perspective which, in an unmodified form, could be applied to study this type of economic system. Therefore, a new perspective based on an already existing but updated approach or a multidisciplinary approach that incorporates the duality of the Belarusian economy is required.
Topic:
Reform, Economy, Economic growth, Public Sector, Trade, and State Capitalism
Political Geography:
Eurasia and Belarus

1632. 30 Years of Economic Transformation in CEE: Key Five Lessons For Belarus

Author:
Aleś Alachnovič, Andrzej Raczko, Izabela Styczynska, Jarosław Neneman, Kateryna Karunska, Krzysztof Głowacki, Pawel Swianiewicz, and Sierž Naŭrodski
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center for Social and Economic Research - CASE
Abstract:
Belarusian economy has been stagnating in 2011-2015 after 15 years of a high annual average growth rate. In 2015, after four years of stagnation, the Belarusian economy slid into a recession, its first since 1996, and experienced both cyclical and structural recessions. Since 2015, the Belarusian government and the National Bank of Belarus have been giving economic reforms a good chance thanks to gradual but consistent actions aimed at maintaining macroeconomic stability and economic liberalization. It seems that the economic authorities have sustained more transformation efforts during 2015-2018 than in the previous 24 years since 1991. As the relative welfare level in Belarus is currently 64% compared to the Central and Eastern Europe (CEE) countries average, Belarus needs to build stronger fundaments of sustainable growth by continuing and accelerating the implementation of institutional transformation, primarily by fostering elimination of existing administrative mechanisms of inefficient resource allocation. Based on the experience of the CEE countries’ economic transformation, we highlight five lessons for the purpose of the economic reforms that Belarus still faces today: keeping macroeconomic stability, restructuring and improving the governance of state-owned enterprises, developing the financial market, increasing taxation efficiency, and deepening fiscal decentralization.
Topic:
Economics, Governance, Economic growth, and Trade
Political Geography:
Eurasia and Belarus

1633. Turning away from globalization? Trade wars and the rules of competition in global trade: Implications for the EU

Author:
Jan J. Michałek and Przemyslaw Wozniak
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
The trade war between the U.S. and China began in March 2018. The American side raised import duties on aluminum and steel from China, which were later extended to other countries, including Canada, Mexico and the EU member states. This drew a negative reaction from those countries and bilateral negotiations with the U.S. In June 2018 America, referring to Section 301 of its 1974 Trade Act, raised tariffs to 25% on 818 groups of products imported from China, arguing that the tariff increase was a response to years of theft of American intellectual property and dishonest trade practices, which has caused the U.S. trade deficit. Will this trade war mean the collapse of the multilateral trading system and a transition to bilateral relationships? What are the possibilities for increasing tariffs in light of World Trade Organization rules? Can the conflict be resolved using the WTO dispute-resolution mechanism? What are the consequences of the trade war for American consumers and producers, and for suppliers from other countries? How high will tariffs climb as a result of a global trade war? How far can trade volumes and GDP fall if the worst-case scenario comes to pass? Professor Jan J. Michałek and Dr. Przemysław Woźniak give answers to these questions in the mBank-CASE Seminar Proceeding No. 161.
Topic:
Globalization, European Union, Economic growth, and Trade
Political Geography:
China, Europe, and United States of America

1634. Does Low Inflation Pose a Risk to Economic Growth and Central Banks Reputation?

Author:
Marek Dabrowski
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
Inflation in advanced economies is low by historical standards but there is no threat of deflation. Slower economic growth is caused by supply-side constraints rather than low inflation. Below-the-target inflation does not damage the reputation of central banks. Thus, central banks should not try to bring inflation back to the targeted level of 2%. Rather, they should revise the inflation target downwards and publicly explain the rationale for such a move. Risks to the independence of central banks come from their additional mandates (beyond price stability) and populist politics.
Topic:
Economic growth, Inflation, and Central Bank
Political Geography:
Global Focus

1635. Is a bubble inflating on Poland’s housing market?

Author:
Adam Czerniak and Stefan Kawalec
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
The year 2019 brought double-digit growth in Polish housing prices, for both new and existing homes. In some cities, real prices for residential real estate have reached the highest levels in history, even higher than at the peak of the boom in 2008. As a result, some are saying that there is a growing price bubble. But thus far no research has been produced that would comprehensively verify this hypothesis on the basis of data from 2006-2019. This work aims to fill that gap. This is exceptionally important, because assessing the likelihood that a housing price bubble is emerging is key for the conduct of monetary and macroprudential policy in Poland. Because if we’re really dealing with growth in macroeconomic imbalances, then taking pre-emptive action to limit further price growth and prepare the economy (including the financial sector) for a potential collapse in housing prices is essential for limiting fluctuations in growth.
Topic:
Markets, Economic growth, Trade, and Housing
Political Geography:
Eastern Europe and Poland

1636. Our Europe: 15 Years of Poland in the European Union

Author:
Jerzy Wilkin, Joanna Konieczna-Sałamatin, Mirosława Marody, Maja Sawicka, Paweł Kaczmarczyk, Jan J. Michałek, Andrzej Halesiak, Stanisława Golinowska, Irena Topińska, Anna Fornalczyk, Richard Woodward, Grzegorz Gorzelak, Andrzej Kwieciński, Katarzyna Zawalińska, Przemysław Kowalski, Anna Malinowska, Wiesława Kozek, Magdalena Kąkol, Maciej Nowicki, Grzegorz Wiśniewski, Andrzej Cylwik, Tomasz Komornicki, Urszula Sztanderska, Jacek Liwiński, Dorota Ilczuk, Anna Karpińska, Przemysław Kowalski, Mateusz Szczurek, Stanisław Gomułka, and Paweł Wojciechowski
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
This report is the result of the joint work of a number of experts from various fields who have been - for many years – analysing the multidimensional effects of EU institutions and cooperation with Member States pursuant to European values and mechanisms. The authors summarise the benefits of Poland’s membership in the EU based on facts; however, they do not hide their own views and reflections. They also demonstrate the barriers and challenges to further European integration. This report was prepared by CASE, one of the oldest independent think tanks in Central and Eastern Europe, utilising its nearly 30 years of experience in providing objective analyses and recommendations with respect to socioeconomic topics. It is both an expression of concern about Poland’s future in the EU, as well as the authors’ contribution to the debate on further European integration.
Topic:
Climate Change, Demographics, Energy Policy, Labor Issues, Economic growth, Regional Integration, Social Policy, Fiscal Policy, Innovation, and Trade
Political Geography:
Europe, Eastern Europe, and Poland

1637. Estonian corporate tax: Lessons for Poland

Author:
Aleksandr Łożykowski, Anna Leszczyłowska, and Dmitri Jegorov
Publication Date:
04-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
Estonia has Europe’s most transparent tax system (while Poland is second-to-last, in 35th place), and is also known for its pioneering approach to taxation of legal persons’ income. Since 2000, payers of Estonian corporate tax don’t pay tax on their profits as long as they don’t realize them. In principle, this approach should make access to capital easier, spark investment by companies and contribute to faster economic growth. Are these and other positive effects really noticeable in Estonia? Have other countries followed in this country’s footsteps? Would deferment of income tax be possible and beneficial for Poland? How would this affect revenue from tax on corporate profits? Would investors come to see Poland as a tax haven? Does the Estonian system limit tax avoidance and evasion, or actually the opposite? Is such a system fair? Are intermediate solutions possible, which would combine the strengths or limit the weaknesses of the classical and Estonian models of profit tax? These questions are discussed in the mBank-CASE seminar Proceeding no. 163, written by Dmitri Jegorov, deputy general secretary of the Estonian Finance Ministry, who directs the country’s tax and customs policy, Dr. Anna Leszczyłowska of the Poznań University of Economics and Business and Aleksander Łożykowski of the Warsaw School of Economics.
Topic:
Governance, Tax Systems, Investment, Fiscal Policy, and Corporate Tax
Political Geography:
Eurasia, Poland, and Estonia

1638. The Story of the Open Pension Funds and the Employee Capital Plans in Poland. Will It Succeed This Time?

Author:
Barbara Blaszczyk
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Center for Social and Economic Research - CASE
Abstract:
Poland’s new Employee Capital Plans (PPK) scheme, which is mandatory for employers, started to be implemented in July 2019. The article looks at the systemic solutions applied in the programme from the perspective of the concept of the simultaneous reconstruction of the retirement pension system. The aim is to present arguments for and against the project from the point of view of various actors, and to assess the chances of success for the new system. The article offers a detailed study of legal solutions, an analysis of the literature on the subject, and reports of institutions that supervise pension funds. The results of this analysis point to the lack of cohesion between certain solutions of the 1999 pension reform and expose a lack of consistency in how the reform was carried out, which led to the eventual removal of the capital part of the pension system. The study shows that additional saving for old age is advisable in the country’s current demographic situation and necessary for both economic and social reasons. However, the systemic solutions offered by the government appear to be chiefly designated to serve short-term state interests and do not create sufficient incentives for pension plan participants to join the programme.
Topic:
Labor Issues, Employment, Social Policy, and Capital
Political Geography:
Eastern Europe and Poland

1639. The European Union: State of play and prospects

Author:
Janusz Lewandowski
Publication Date:
05-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
"Many brilliant prophecies have appeared for the future of the EU and our entire planet. I believe that Europe, in its own style, will draw pragmatic conclusions from the crisis, not revolutionary ones; conclusions that will allow us to continue enjoying a Europe without borders. Brussels will demonstrate its usefulness; it will react ably and flexibly. First of all, contrary to the deceitful statements of members of the Polish government, the EU warned of the threats already in 2021. Secondly, already in mid-March EU assistance programs were ready, i.e. earlier than the PiS government’s “shield” program. The conclusion from the crisis will be a strengthening of all the preventive mechanisms that allow us to recognize threats and react in time of need. Research programs will be more strongly directed toward diagnosing and treating infectious diseases. Europe will gain greater self-sufficiency in the area of medical equipment and drugs, and the EU – greater competencies in the area of the health service, thus far entrusted to the member states. The 2021-27 budget must be reconstructed, to supplement the priority of the Green Deal with economic stimulus programs. In this way structural funds, which have the greatest multiplier effect for investment and the labor market, may return to favor. So once again: an addition, as a conclusion from the crisis, and not a reinvention of the EU," writes Dr. Janusz Lewandowski, the author of the 162nd mBank-CASE seminar Proceeding.
Topic:
Demographics, Labor Issues, European Union, Economic growth, Banks, and Trade
Political Geography:
Europe

1640. The significance of the tobacco product manufacturing to Poland’s economy

Author:
Adam Śmietanka, Anna Malinowska, Grzegorz Poniatowski, and Jan Hagemejer
Publication Date:
07-2020
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
This report, prepared by a team of economists from CASE, is a continuation of the 2018 analysis The significance of the tobacco product manufacturing to Poland’s economy commissioned by JTI Polska Sp. z o.o. The purpose of the research whose results are presented in this report is to assess the economic significance, challenges and development prospects of the tobacco product manufacturing, trade and distribution sector in Poland. In the report we analyze a cross-section of the tobacco industry and its significance for the economy as a whole. We also present the significant barriers to the sector’s growth, i.e. the illicit market, costs of compliance and regulatory uncertainty, and we also model the long-term macroeconomic effects of potential changes in the industry. To the best of our knowledge, at the moment this is the most comprehensive economic study of the sector.
Topic:
Economic growth, Fiscal Policy, Manufacturing, Trade, and Tobacco
Political Geography:
Europe and Poland