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iii

CONTENTS

Page

Explanatory notes viii

Abbreviations ix

About the main contributors to the Seminar xi

Preface xii

Part One

RECENT ECONOMIC DEVELOPMENTS AND THE SHORT-RUN OUTLOOK IN THE ECE REGION

Chapter 1THE ECE ECONOMIES IN AUTUMN 2001 3

1.1The global context and western Europe 3

(i)The global context 3

(ii)Western Europe 10

1.2The transition economies 14

(i)Introduction 14

(ii)Output and demand 16

(iii)Costs and prices 24

(iv)Labour markets 27

(v)International trade 30

(vi)Current accounts and external financing 36

1.3The short-term oulook 40

(i)The western market economies 40

(ii)The transition economies 43

Part Two

CREATING A SUPPORTIVE ENVIRONMENT FOR BUSINESS ENTERPRISE AND ECONOMIC GROWTH: INSTITUTIONAL REFORM AND GOVERNANCE

Papers from the ECE Spring Seminar, May 2001

INTRODUCTION AND SUMMARY OF DISCUSSION by the Economic Analysis Division, UNECE 49

Chapter 2PUBLIC AND CORPORATE GOVERNANCE: THE INSTITUTIONAL FOUNDATIONS OF THE MARKET ECONOMY

William Lazonick 59

2.1The triumph of the “market economy”? 59

2.2The theory of the market economy 61

2.3

Innovation and development in a market economy 63

2.4

The social conditions of innovative enterprise 65

2.5Economic theory and economic development 70

Discussants’ comments on Professor Lazonick’s paper

2.AVictor Polterovich 73

2.BEugen Jurzyca 75

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