Outline n Comparing Economies x Comparing Economic systems n Role of Factors of Production in Economic Growth, Economic Development and Economic Transition.

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Presentation transcript:

Outline n Comparing Economies x Comparing Economic systems n Role of Factors of Production in Economic Growth, Economic Development and Economic Transition n Understanding Historical Development -The End of History or the Clash of Civilizations? n Changes of Social Systems n Basic Current Issues

Economic Growth, Economic Development, Economic Transition n GDP (flow) is created by factors of production (stocks) n Factors of Production: u Physical Capital u Labor u Human Capital u Technology u Institutions F Formal F Informal

Economic Growth, Economic Development, Economic Transition n All three interested in the long time horizon n Economic Growth: u In Rich Economies u Basic Factor is Technology n Economic Development: u In Poor Economies u Basic Factor are Institutions n Economic Transition u In (relatively) Rich (socialist) Economies u Basic Factor are Institutions

Understanding Historical Development n Czech Republic in East Europe n East Europe in Europe n Europe in the World

Understanding Historical Development u Democracy x ? n Democracy x Dictatorship u Liberal x ? n Liberal x Totalitarian u What has been the task in the East Europe? n To change from totalitarian dictatorship to liberal democracy

Understanding Historical Development n Basic Trade-Off in Economics: Equity x Efficiency n Egalitarian States u Former socialist states u All are equal (but some are more equal than the others) n Think about the meaning of words: u equity, egality, equality

Understanding Historical Development n Clash of Civilizations or The End of History (in liberal democracy)? u Two highly recommended bestsellers n Let us discuss it now in the European context u Languages in Europe u Religions in Europe u Nations in Europe

Understanding Historical Development

Which Historical Facts Contributed to the EU Enlargement Process?

Changes of Social Systems What opens windows of opportunity for these changes?

Changes of Social Systems n Always three factors u Environment And u Support of Population Open the Window of Opportunity for u The Leading Force n Applications: u Communist Putch in 1948 u Prague Spring in 1968 u Velvet Revolution in 1989 u Change of Regime in Iraq u ….and many others

Basic Current Issues n World u Economic Crisis u Huge Public Debts n EU u Lisbon Treaty

Basic Current Issues n Czech Republic u The speed of joining the Eurozone u Convergence of living standards

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