Europe: Trading Power, American Hunting Dog, or the World´s Scandinavia?
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The East-West divide
The adoption of capitalist democracy in Eastern Europe has not turned out to be a
quick fix of Northwestern European prosperity. But, how high the costs of systemic
change have been, and for how long they will have to be paid, is controversial and
uncertain, respectively. To analyze them is completely outside the scope of this
chapter. However, in order at least to hint at the magnitude of making one Europe,
a couple of indicators are needed.
Unicef data on life expectancy show a clear difference between, on one hand,
the countries of the former Soviet Union and the Balkans and, on the other, Poland,
Czechia, Slovakia, Slovenia, and, with qualification, Hungary. The latter group
maintained their late-Communist mortality rates during the first years of the 1990s
and have already started to improve, although not yet at the rate of improvement
during the 1980s. The successor states of the USSR (including the Baltics) and the
Balkans on the other hand, have experienced a dramatic decline of life expectancy,
which was already considerably lower than in Western Europe even before 1989–
91.(Unicef, 1995:24ff, 143) As increased life expectancy is one of the very few
development indices in which even sub-Saharan Africa has been able to participate,
the 1990s decline in post-Communist Eastern Europe is a serious sign.
By the turn of 1997–98 only Poland was at least back at its GDP of 1989 (in the
Polish case somewhat above both the pre-crisis peak of 1978 and 1989). Eastern
Europe (except the ex-USSR) as a whole was about 8 per cent below its level of
1989. Before the crisis of 1998, the GDP of Russia was less than 60 per cent of
its 1989 level. Consumption expenditure figures give a somewhat brighter picture.
According to them, the 1989 was reached by 1995–96 in Croatia, the Czech
Republic, Poland, Romania and Slovenia. In the other countries, real consumption
expenditure had not reached its level under Communism (UN, 1998:146–47).
Thereafter, there has been a substantial recovery. By 2005, only Bulgaria out of
the latest EU members was still below its overall economic level of 1989. Latvia
and Lithuania were about level, and the others significantly above the economically
not very glorious year of 1989. Russia (index 88), Ukraine (59), and Serbia (58)
were still well below, but not Belarus (123, on a par with the Czech Republic and
Estonia) (UNECE, 2006:15). Nevertheless, there is a persistent gap between East
and West. In 2004 the OECD (2004:194) calculated that with the growth rates
of 1995–2003 it would take Poland thirty-seven years to close half of that gap,
Hungary twenty-nine years.
The East-West divide and the internal polarization in the East will interact with
the economic and the ethnic segmentations and tensions in the West, and with
the political efforts at wider continental integration. This will probably involve
an upper middleclass continental rapprochement – already palpable – a tendency
to aggravate the frustrations of the working and of the unemployed classes both
from the East and West, without bringing them closer to each other, and, thirdly, to
complex webs of continental networks of crime and of illicit business.