Documente Academic
Documente Profesional
Documente Cultură
Economies
Eastern European
Economies
A Region in Transition
Marcus Goncalves and Erika Cornelius Smith
Abstract
Nearly seven decades ago, six countries in Western Europe (Belgium,
France, West Germany, Italy, Luxembourg, and the Netherlands)
decided to take economic cooperation to the next level. The vision of
the European Union (EU) founding states, epitomized by the Schuman
Declaration in 1950, was to tie their economiesincluding the reemerging West G
erman economyso closely together that war would become
impossible.
Europe will not be made all at once, or according to a single plan.
It will be built through concrete achievements which first create a de
facto solidarityRobert Schuman. In 1973, Denmark, Ireland, and
the United Kingdom joined what was then referred to as the European
Community. The 1970s were also a decade of deep social and political
transformations in Greece, Portugal, and Spain, where military regimes
and dictatorships were overthrown. Inspired by the prosperity and stability
of the European Community, these countries joined the European project
within 10years, strengthening their emerging democracies. The countries
benefited e normously from free trade and common economic policies,
in particular structural funds designed to foster convergence by funding
infrastructure and investments in poorer regions.
The Maastricht Treaty established convergence criteria to ensure that
countries joining the new common currency would be sufficiently similar,
and it also gave market forces a significant role in disciplining m
ember
states, by establishing the no bailout clause. To dispel skepticism and
preserve fiscal discipline after the common currency was introduced,
member countries signed the Stability and Growth Pact in 1997, which
was designed to tie policies to fiscal balance and debt targets. In sum, the
euros architecture was built on the premise that market forces, combined
with minimal coordination of policies, would sufficiently align economies, discipline fiscal policies, and allow countries to withstand idiosyncratic shocks.
This book examines how these larger trends were experienced in
individual member states throughout the Eastern European states. This
book also scans the regional block of Central and Eastern Europe (CEE),
South East Europe (SEE), and the Commonwealth of Independent States
(CIS), and the macroeconomic dynamics of these states and the EU.
viii ABSTRACT
Keywords
CEE, CIS, Eastern European Economies, EU, European Union, Eurozone,
Maastricht Treaty, Schuman Declaration, SEE, Western Europe
Contents
Prefacexi
Acknowledgmentsxiii
Chapter 1 The European Context for Integration and Accession1
Chapter 2 The Role of the European Union in Eastern
EuropeanEconomies27
Chapter 3 Eastern Europe Regional Bloc: CEE and CIS39
Chapter 4 The Economic Impact of Integration65
Chapter 5 Challenges for Entering Eastern European Markets97
Chapter 6 Political Risk in Eastern Europe123
Chapter 7 Future Considerations and Challenges157
Appendix A: A Brief Scanning of the CEE Countries163
Appendix B: A Brief Scanning of the CIS Countries235
Endorsements285
References287
Index313
Preface
This book is divided into seven chapters, each addressing a significant
aspect of the economic, political, and social transition in central and
eastern Europe over the last several decades. We integrate historical data
with the most recent political and economic reporting in our analysis,
including our assessments, opinions, and experience (where appropriate)
as scholars, researchers, consultants, and global citizens.
Chapter 1 provides the reader with an introduction to the historical
context for European integration, including the political structures and
economic relationships forged in the post-World War II period. We pay
close attention to the impact of nationalist histories and geography on the
politics of integration, and include brief introductions to each country
included in later chapters of this publication.
Chapter 2 focuses more specifically on the relationship between the
European Union (EU) and the economies of states in central and eastern
Europe. We examine the political, economic, and security considerations
that complicated the federalist relationship in each state, and end with a
brief discussion of the adoption of the euro.
Chapter 3 provides an overview of these eastern European countries in transition from a state-centered economy to a free market,
decentralized one. We provide an overview of the geopolitical and
xii PREFACE
Acknowledgments
There were many people who helped us during the process of writing this
book. It would be impossible to keep track of them all. Therefore, to all
that we have forgotten to list, please dont hold it against us!
We would like to thank Dr. Patrick Barron, professor at the G
raduate
School of Banking at the University of Wisconsin, Madison, and of
Austrian economics at the University of Iowa, in Iowa City, for his contributions on the issue of currency wars in Chapter 4.
We also would like to thank Mr. Bo-Young Lin, from the G
raduate
Institute of International and Development Studies and United Nations
Conference on Trade and Development (UNCTAD) for his support
and insights. We would also like to express our appreciation to many
corporate leaders who shared their views and experiences with us in
the eastern European region. Our special thanks go to the following
leaders and great friends: Jrgen Eriksson, founding partner at Bearing
Group Ltd, in London, UK; Ewelina Kroll, public relations manager
at East Europe Consulting; Piotr Kozicki, business information security officer at C
itigroup Global Fund Services in Warsaw, Poland; Julius
Niedvaras, director of international business school at Vilnius University,
Lithuania; Luc Jalllois Sr. vice president at LJL Consulting, Kiev,
CHAPTER 1
Overview
Nearly seven decades ago, six countries in Western Europe (Belgium,
France, West Germany, Italy, Luxembourg, and the Netherlands) decided
to take economic cooperation to the next level. The vision of the E
uropean
Union (EU) founding states, epitomized by the Schuman Declaration in
1950, was to tie their economiesincluding the re-emerging West German
economyso closely together that war would become impossible.
In 1973, Denmark, Ireland, and the United Kingdom joined what
was then referred to as the European Community. The period of
1970s was also a decade of deep social and political transformations in
Greece, Portugal, and Spain, where military regimes and dictatorships
were overthrown. Inspired by the prosperity and stability of the European
Community, these countries joined the European project within 10years,
strengthening their emerging democracies. The countries benefited enormously from free trade and common economic policies, in particular
structural funds designed to foster convergence by funding infrastructure
and investments in poorer regions.
Despite these significant cooperative achievements, the most significant episode in Europes postwar political and economic integration was
symbolized by the fall of the Berlin Wall. A defining moment in the collapse of the centrally planned economic systems of the 1980s, the collapse
10
create ex nova optimal economic and social institutions and thereby free
their latent energies.13 Persuaded by the merits of neoliberal ideology, the
scholars championed CEE countries potential to leapfrog those Western countries whose oligarchic and inward-looing politico-institutional
framework [had] not had the chance to be dynamited away.14 By the
mid-1990s, most CEE countries had liberalized prices and witnessed the
collapse of intra-Comecon trading. But with outdated technology, poorer
quality commodities, few established marketing connections, and facing
the protectionist policies of major powers, CEE manufacturers found it
difficult, if not nearly impossible, to break into external markets. The
comparison to Western Europe also neglected the important historic context of the post-1945 political and economic worldeconomic boom and
Marshall Aid that overwhelmingly benefitted Western European states, as
well as infrastructure development and tariff protection for industries in
those states. Nearly 90 percent of Marshall Aid was issued in grant form,
yet only 10 percent of that aid was received by post-communist European
states, in part because Stalin prevented many states from receiving this
assistance.15 Historians note that only Poland received significant support from Western allies in the form of debt cancellation to both public
and private creditors and EU assistance with a preferential status for agricultural imports.16 Jan Drahokoupil17 writes that Hungary, on the other
hand, possessed the worlds highest per capita debt and was obligated to
earmark revenue raised by privatizing state-owned corporations.
The Expansion of Liberal-Democratic Government
Beginning in the mid-1970s, a significant number of states around the
globe, including Southern Europe, adopted parliamentary government.
In terms of the Second and Third Worlds, John Walton and David
Walton and Seddon (1994, 33435). See also Hoogvelt (1997) and Derluguian
(2005).
19
Walton and Seddon (1994, 33435). See also Hoogvelt (1997) and Derluguian
(2005).
20
Bideleux and Jeffries (2007, 54041).
21
Moore (1969).
18
Quoted in Haynes and Hasan (1998). See also Dale (2004, 27475).
Tams (2011) and Shields (2011).
24
Bandelj (2008, 115).
25
See Sachs (1994); Sjberg and Wyzan (1991); Taras (1992).
22
23
10
12
$ per inhabitant
17
780
Hungary
7.5
700
Poland
19.5
557
320
Yugoslavia
Romania
Bulgaria
455
Czechoslovakia
3.5
233
USSR
10.2
39
PCs
PCs linked to
Internet
EU-15 average
46.1
24.8
2.3
Slovenia
42.6
25.3
1.2
Estonia
33.9
13.5
2.1
Czech Republic
36.2
10.7
1.2
Latvia
23.5
8.2
0.8
Hungary
23.5
7.4
1.2
Slovakia
23.6
7.4
0.5
Poland
25.9
6.2
0.4
Lithuania
31.7
5.9
0.4
Bulgaria
24.4
2.7
0.2
Romania
13.9
2.7
0.2
14
Table 1.3 Percentage of workforce employment in knowledgeintensive services and medium- or high-tech manufacturing (2002)
Knowledge-intensive
services
EU-15 average
33.3
7.4
Estonia
30.9
3.4
Hungary
26.4
8.5
Lithuania
24.7
2.6
Latvia
24.7
1.9
Slovakia
24.0
8.2
Czech Republic
23.9
8.9
Slovenia
22.8
9.2
Bulgaria
22.2
5.3
Romania
12.8
5.5
Source: European Commission. November 7, 2003. Press Release, STAT/03/127, pp. 12. No data
available for Poland.
22.70
4.21
Sweden
28.56
Cyprus
Denmark
27.10
Slovenia
8.98
Germany
26.54
Poland
4.48
France
24.39
Czech Republic
3.90
United Kingdom
23.85
Hungary
3.83
Austria
23.60
Slovakia
3.06
Netherlands
22.99
Estonia
3.03
Ireland
17.34
Lithuania
2.71
Spain
14.22
Latvia
2.42
Greece
10.40
Romania
1.51
Portugal
8.13
Bulgaria
1.35
10.74
Note: The average hourly labor costs are total annual labor costs divided by the
total number of hours worked during the year.
33
Excluding Italy and Belgium, no available data.
32
For more information on studying foreign direct investment (FDI), see www.
economist.com/economics-a-to-z#2DI6CRzKPkRSqArm.99
35
Along with efforts to reform their socialist regimes, Hungary, Poland, and
Yugoslavia allowed joint ventures with foreign investors prior to 1989. The
provisions, however, only really began to see the effects of FDI beginning in 1989,
as demonstrated by the data in Table 1.5, Foreign Direct Investment Trends.
36
IMF (1997); UNCTAD (1998).
37
Schmidt (1995).
34
16
1970
CEE
World
CEE
World
13
1980
55
1989
<1
193
1990
<1
208
1991
161
1992
169
1993
228
1994
259
1995
10
341
10
1996
393
12
10
1997
10
488
16
12
1998
18
701
19
14
1999
19
1,092
23
16
2000
21
1,397
27
18
2001
22
826
31
20
2002
25
716
35
21
2003
17
633
37
22
2004
28
648
39
22
Note: CEE in this table includes Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Poland, Romania, Slovakia, and Slovenia.
Source: UNCTAD (2006).39
Meyer (1995); Meyer (1998); Lankes and Venables (1996); OECD (1998);
Bevin and Estrin (2014).
39
http://unctadstat.unctad.org/EN/Index.html
38
By 2004, it was almost twice as high, contributing on average to 39 percent GDP. This placed the CEE among the worlds top regions in terms
of foreign capital penetration at that time.40
Although these inflows formed a significant portion of the CEE economy, for the entire CEE region, FDI between 1989 and 1994 amounted
to only two-fifths of the flow to China in 1993 alone. These differences in
regional FDI are partially explained by differences in investor countries of
both the regions. As displayed in Table 1.6, the primary regional investors
in the CEE countries during the transition were not identical to the top
worldwide investors.
Germany and the Netherlands rank higher than the United States
based on total stock of investment in the region as of 2000, while France
and the United Kingdom had a much less significant presence. Austria
and Sweden, although ranked 23rd and 13th respectively, were much
more prominent investors.
These relationships are further complicated when one examines the
presence of significant worldwide investors in individual CEE countries
during the transition. Table 1.7 highlights these disparities in percent
share of total FDI stock across the CEE region nearly 10 years after the
fall of the communist regimes. The Czech Republic and Poland received
Table 1.6 Top investor countries in 2000
World
CEE
1.
United States
Germany
2.
United Kingdom
3.
France
United States
4.
Germany
5.
Hong Kong
US
UK
France
Germany
Hong Kong
Belgium/
Luxembourg
Netherlands
Japan
Switzerland
Canada
Italy
Spain
Sweden
Australia
Singapore
10
11
12
13
14
15
Investor
Country
World
Ranking
<1
<1
<1
<1
<1
19
11
12
<1
<1
22
21
Bulgaria Croatia
<1
<1
<1
<1
<1
<1
30
26
Czech
Republic
40
<1
<1
<1
<1
<1
<1
Estonia
<1
<1
<1
<1
23
26
Hungary
13
<1
<1
<1
<1
11
<1
Latvia
<1
17
<1
<1
<1
<1
<1
10
<1
<1
<1
<1
25
<1
19
12
10
<1
<1
<1
<1
24
28
<1
<1
<1
<1
<1
<1
<1
12
11
Table 1.7 Investments by Significant Worldwide Investor Countries in CEE (Percent Share of Total FDI Stock in Host in
2000)
18
EASTERN EUROPEAN ECONOMIES
Taiwan
Denmark
Norway
South Africa
China
South Korea
Austria
Argentina
Malaysia
17
18
19
20
21
22
23
24
25
<1
<1
<1
<1
<1
25
<1
<1
<1
Finland
16
<1
11
<1
<1
<1
<1
<1
<1
<1
30
12
<1
<1
<1
<1
<1
<1
<1
10
<1
<1
<1
<1
18
<1
<1
<1
<1
<1
<1
<1
14
<1
<1
<1
46
<1
The European Context for Integration and Accession 19
20
www.imf.org/external/pubs/ft/fandd/2014/03/moghadam.htm
22
Macedonia, Romania, Serbia, and the Black Sea. With strategic access to
Turkish Straits, it also controls key land routes to Europe and the Middle
East. The government system is a parliamentary democracy. The chief of
state in the president and the head of government is the prime minister.
Bulgaria has transitioned to a market economic system and is a member
of both the EU and the Black Sea Economic Cooperation (BSEC).
Croatia
Croatia is a country in Central Europe and SEE on the Adriatic Sea and
members of CEFTA. With a combination of flat plains, mountains and
small islands, the country also shared borders with Bosnia and Herzegovina, Hungary, Montenegro, Serbia, and Slovenia. It controls most land
routes from Western Europe to the Aegean Sea and Turkish Straits. The
government system is a presidential or parliamentary democracy. The
chief of state is the president and the head of government is the prime
minister. Croatia has a mixed economic system in which the economy
includes private enterprise, centralized economic planning, and government regulation.
Czech Republic
The Czech Republic, strategically located along some of the oldest land
routes in Central Europe, is a landlocked country with rolling hills and
plains that borders Poland, Germany, Austria, and Slovakia. The government system is a parliamentary democracy. The chief of state is the
president and the head of government is the prime minister. Czech
Republic has successfully transformed from a centrally planned economy
to a m
arket economy in which the prices of goods and services are determined in a free price system. The Czech Republic is a member of the EU.
Estonia
Estonia is a country located in Eastern Europe that includes bays, straits,
inlets, and an estimated 1,500 islands. Bordered by Russia, Latvia, the
Gulf of Finland, and the Baltic Sea, the mainland is flat and heavily forested. The government system is a parliamentary republic. The chief of
24
state is the president and the head of government is the prime minister.
Estonia has a market-based economy in which the prices of goods and
services are determined in a free price system. Estonia is a member of the
EU.
Hungary
Hungary, an EU member, is located in Central Europe bordering Austria,
Croatia, Romania, Serbia, Slovakia, Slovenia, and Ukraine. A landlocked
state, Hungarys landscape consists of flat to rolling plains divided in two
by its main waterway, the Danube. The government system is a parliamentary democracy. The chief of state is the president and the head of
government is the prime minister. Hungary has made the transition from
a centrally planned economic system to a market economy.
Latvia
Latvia, located in the Baltic region of Northern Europe, is bordered by
Estonia, Lithuania, Russia, Belarus, and the Baltic Sea. Across the Baltic
Sea lies Sweden. The government system is a parliamentary democracy.
The chief of state is the president and the head of government is the prime
minister. Latvia has transitioned to a market-oriented economy and is a
member of the EU.
Lithuania
Lithuania, also located in Northern Europe, is situated on the southeastern shore of the Baltic Sea. It shares a border with Latvia, Belarus, Poland,
and the Russian enclave of Kaliningrad. Across the Baltic Sea lies Sweden
and Denmark. The government system is a parliamentary democracy. The
chief of state is the president and the head of government is the prime
minister. Lithuania has transitioned from a command economy to a market economy, with the private sector accounting for the majority of GDP.
Government regulation is transparent and efficient, and Lithuania is a
member of the EU.
Montenegro
Montenegro, with both mountainous and coastal plain regions, is a
country located in SEE. It has a coast on the Adriatic Sea and is bordered by Croatia, Bosnia and Herzegovina, Serbia, Kosovo, and Albania.
The government system is a republic. The chief of state is the president
and the head of government is the prime minister. Montenegro has a
service-based market economy and it is a member of the CEFTA.
Poland
Located in Central Europe, Poland is bordered by Belarus, Czech
Republic, Germany, Lithuania, Russia, Slovakia, and Ukraine. The government system is a republic. The chief of state is the president and the
head of government is the prime minister. Poland has a mixed economic
system in which the economy includes a variety of individual liberties,
combined with centralized economic planning and government regulation. Poland is a member of the EU.
Romania
Located at the crossroads of Central and SEE, Romania has a coastline
on the Black Sea and borders Bulgaria, Hungary, Moldova, Serbia, and
Ukraine. Mountain ranges running from north and west in the interior,
collectively known as the Carpathians, form a significant portion of the
states geography. The government system is a republic. The chief of
state is the president and the head of government is the prime minister.
Romania has a mixed economy and is a member of the BSEC.
Serbia
As part of the central Balkans, Serbia is a landlocked country located at
the crossroads of Central and SEE. It shares borders with Bosnia and
Herzegovina, Bulgaria, Croatia, Hungary, Kosovo, Macedonia, Montenegro, and Romania. The geography of Serbia is varied and includes fertile
plains, limestone ranges, and in the southeast, the Dinaric Alps and on its
26
Index
Accession and negotiation
CEE states, 2728
complexities of (See Accession
complexities)
Copenhagen criteria, 28
euro adoption (See Euro adoption)
financial arrangements, 28
Maastricht Treaty, 2930
process elements, 2829
Single European Act of 1986, 29
transitional arrangements, 28
Accession complexities
CEE states, 3233
EU membership, 3031
gross domestic product (GDP),
3334
negotiations, 31
political considerations, 34
positive social changes, 33
Romania state, 3233
security considerations, 32
Albania
agriculture, 206
challenges, 208
communist government, 206
GDP growth, 207208
geographic location, 205
independence, 205, 206
inward FDI, 207208
members, 206207
open-market economy, 207
Armenia
Armenian homeland, 236
currency stabilization, 238239
dram, national currency, 238
economy, 237238
geographic location, 236
history, 235
privatization, 239240
purchasing power parity (PPP), 239
Russian Revolution, 237
WWI, 236237
Azerbaijan
currency, 243244
GDP growth, 242243
geographic location, 240, 241
independence, 240
inflation, 244
membership, 241242
Nagorno-Karabakh region, 240,
241
oil-based economy, 242
Organization for Security and
Cooperation in Europe
(OSCE), 241
privatization, 243
and Soviet Union, 240
Belarus
economic crisis, 246
GDP, 247
geographic location, 244, 245
Poland invasion, 244, 245
ruble, 246247
Soviet Union, 244
state-controlled companies,
245246
trading partners, 247248
WWII, 245
Belarusian ruble (BYN), 246247
Bosnia and Herzegovina
Bosnian administration, split in,
126
Dayton Accords, 126
EU membership, 127
government indicators, 128
legislative and presidential
elections, 127
violence outbreak, 126127
voter turnout, 127
Bosnia-Herzegovina
banking sector, 212
cantons, 211
consumption economy, 213
314 Index
Index 315
definition, 235
Georgia (See Georgia)
Kazakhstan (See Kazakhstan)
Kyrgyzstan (See Kyrgyzstan)
member states, 235
Moldova (See Moldova)
Russia (See Russia)
Tajikistan (See Tajikistan)
Turkmenistan (See Turkmenistan)
Ukraine (See Ukraine)
Uzbekistan (See Uzbekistan)
Commonwealth of Independent
States (CIS) bloc
definition, 45
economic challenges (See Economic
challenges, CIS)
economic cooperation, 4849
establishment of, 45, 46
failures of, 4748
functions, 47
geographic location, 46
goals, 4647
purposes, 47
Contagion effect
CIS currency crisis, 62
selected currencies vs. dollar, 63
Soviet Union countries, 6162
Copenhagen criteria, 28
Croatia
corruption, 131
economic indicators, 129, 131
economic output, 203
FDI inflow, 202203
GDP growth, 202203
geographic location, 200201
inflation, 203
macroeconomic trends, 204
parliamentary system, 201202
population, 201
reforms, 204
service sectors, 203204
transition scores list, 131, 132
WWI and WWII, 201
Currency crisis, 49, 51
Currency suicide. See Currency war
Currency war
and CEE countries, 81, 82
Chinese Yuan, 80
and CIS countries, 82
316 Index
eurozone, 54
G20 summit, 58
International Monetary Fund
(IMF), 5354
Japan bank, 53
Japans inflation rate, 5556
Plaza Accord, 60
quantitative easing (QE), 52
recession, 49
reciprocal trade barrier, 61
ruble exchange rate, 4950
Russias international reserves, 51
Switzerland, 58
world economies, 5253
Economic restructuring, 103104
EME. See Evaluating emerging market
(EME)
ERM. See European Exchange Rate
Mechanism (ERM)
Estonia
communism, 165
economies, 164165
flat tax policies, 166
GDP growth, 166167
government, 164
information technology (IT) sector,
167
International Monetary Fund
(IMF), 168
internet voting, 164
market economy, 167168
occupation, 163164
population, 163
Soviet Union, 164
EU. See European Union (EU)
Euro adoption
CEE states, 35
European Commission, 3637
integration process, 3536
other CEE states, 3738
Poland bank, 35
post-communist transition, 35
Schadlers study, 36
trading system, 35
European Exchange Rate Mechanism
(ERM), 29
European Union (EU)
accession and negotiation (See
Accession and negotiation)
Index 317
Growth challenges
capital flow and currency rate
control (See Capital flow and
currency rate control)
CEE countries, 70
currency wars (See Currency war)
gross national savings, 7071
indebtedness (See Indebtedness)
inflation control (See Inflation
control)
investment flow, 70
Hot money, 78
Hungary
economy, 185
Fidesz, 137
forint currency, 185
GDP growth, 185186
geographic location, 183184
law, 137
political and economic issues, 137,
139
private sectors, 185
racial rhetoric, 137
transit scores, 137, 138
WWII, 184185
Indebtedness
bank policies, 75
Belgium, 74
Canada, 74
central banks, 7879
debt-to-GDP ratio, 72, 73
Eurozone, 76, 77
financial regulatory measures, 78
financial repression, 76
fiscal austerity, 7273
global financial crisis, 75
government policies, 76
hot money, 78
importance of, 7172
inflation, 73, 74, 78
infrastructure building, 72
Italy, 73
Japan, 73
public and private debts, 77
tax rate, 76
318 Index
Index 319
GDP, 141
GDP growth rate, 171, 172
geographic location, 168169
Latvians and Livs, 169
manufacturing industries, 170171
membership, 169170
national democratic governance,
139, 140
post-war period, 170
Soviet Union, 169
three-way ruling coalition, 139
Ukraine security crisis, 139
Legal framework and trading policies
ease of doing business list, 105107
European Union (EU), 104
foreign investment, 107
International Criminal Tribunal for
the former Yugoslavia (ICTY),
104
low-skilled workers, 105
Liberal-democratic government
expansion
impediments, 8
parliamentary government, 78
Poland democracy, 89
potential pragmatics, 8
Lithuania
Barclays business, 176
biotechnology, 175, 176
blacklist, 141, 143
corruption, 141
EU membership, 174, 175
GDP growth rate, 174175
geographic location, 173
Organization for Economic
Cooperation and
Development (OECD), 143
politics, 141
population, 173174
transition scores, 142
Maastricht Treaty, 2930
Macedonia
agriculture, 220
Country Partnership Strategy
(CPS), 222
economic developments, 222
GDP growth, 220221
geographic location, 219
320 Index
Index 321
Tajikistan
agriculture, 274
ancient cultures, 271
civil war, 271, 272
electricity demand, 275
empires and dynasties, 271
GDP per capita, 273274
geographic location, 271, 272
population, 275
poverty, 273
private investment, 274
provinces, 272
public investment, 274
Russian ruble, 272
Turkmenistan
GDP per capita, 270
geographic location, 268, 269
government policy, 271
Human Rights Watch, 269
natural reserves, 270
Ukraine
agricultural development, 279
banking industry, 279
economic crisis, 278279
education, 279
energy sector, 279280
fragmentation, 275276
GDP per capita, 277278
geographic location, 275, 276
health system, 279
independence, 276
NATO partnership, 276277
unemployment, 279
water and wastewater utilities, 280
Uzbekistan
commodity production, 281
diverse cultural heritage, 280, 281
exports, 282
GDP per capita, 281282
geographic location, 280, 281
industrialization, 283
population, 280, 281
self-sufficiency policy, 282