Claus-Friedrich Laaser

Baltic Trade with Europe: Back to the Roots?

Abstract The statistical analysis of Baltic trade flows and gravity estimates reveal that Estonia, Latvia and Lithuania have rapidly integrated into the international division of labour with a distinct EU focus. The three Baltic States have taken a road towards the EU common market which pays particular attention to close trade relations with their direct neighbours on the Baltic Rim. The Baltic Sea obviously serves as a major integrating device for these countries, although each of them has developed relations with different regional foci. At the same time Estonia, Latvia, and Lithuania, although being no longer integrated into the former intra-Soviet division of labour, have not abandoned their contacts to the Soviet successor states altogether. From a sectoral perspective, Baltic exports are dominated by “traditional” labour-intensive goods. However, this common feature is embedded in heterogeneous patterns of trade specialization, ranging from Estonia’s exports with higher technological content to Lithuanian raw-material-intensive exports.

Knocking on the Door: The Baltic Rim Transition Countries Ready for Europe?

Since 1990 the Baltic Sea Region (BSR) has witnessed a rapid process both of disintegration and integration. On the Eastern Baltic Rim, the breakdown of the socialist division of labour and the dissolution of the Soviet Union constituted a major turning point in economic and social development. On the Western Rim of the Baltic Sea, the process of European integration under the umbrella of the European Union (EU) continued in the shape of the 2nd Northern Enlargement in 1995, which covered Sweden and Finland. By the end of the nineties all Economies in Transition (EIT) on the Eastern Baltic Rim — with the exception of the Russian Federation — had applied for EU membership, and accession negotiations were formally concluded with the acceptance of ten new EU members at the EU Copenhagen Summit in December 2002. In this period of political and economic change the question arises how integration and co-operation in the BSR have developed so far and what role the EITs already play in the European division of labour.

Aufbau und Bewährung der Marktwirtschaften im Baltikum

Nachdem Estland, Lettland und Litauen im Herbst 1991 ihre Eigenstaatlichkeit wiedererlangt hatten, bedurfte es der raschen politischen und wirtschaftlichen Stabilisierung. Die drei Lander orientierten sich, wie schon nach ihrer erstmaligen Unabhangigkeit zu Beginn der 1920er Jahre, nach Westeuropa – die Vollmitgliedschaft in der Europaischen Union (EU) wurde zum langerfristigen Ziel. Eine Voraussetzung fur die Integration in die EU war der Aufbau einer funktionstuchtigen Marktwirtschaft, um am Europaischen Binnenmarkt teilhaben und im europaischen Wettbewerb bestehen zu konnen. Der Weg in die Union und die damit verbundene Systemtransformation boten die Chance, nach Jahrzehnten der sozialistischen Arbeitsteilung und Isolation auf die Weltmarkte zuruckzukehren.

Subventionen in Deutschland - aus der Perspektive des Kieler Subventionsberichts

Die Autoren untersuchen die Subventionen in Deutschland und stellen dar, welche Summen Bund, Länder und Gemeinden sowie Sonderhaushalte und die Europäische Union an Finanzhilfen vergeben und an Steuervergünstigungen gewährt haben. Dabei wenden sie den Kieler Subventionsbegriff an, der wesentlich umfassender ist als derjenige der Bundesregierung in deren eigenen Subventionsberichten. Er schließt u. a. auch Zahlungen an Organisation ohne Erwerbszweck ein, soweit diese marktgängige Leistungen anbieten.

How Structural Deficiencies Hamper Estonia’s Catching-Up Process

Estonia is widely regarded as a paramount example for a successful transformation of a socialist economic system to a functioning market economy. Against the backdrop of this positive image which contrasts strongly with the crisis scenarios in Southern Europe the remaining problems of Estonia are often ignored. Estonia has hardly succeeded in catching-up economically with the richer countries of the EU. In this paper the authors raise the question why the catching-up process of Estonia is not as successful as it could have been expected from the policy performance during the last decades. It turns out that Estonia faces a serious productivity problem, particularly in the manufacturing sector producing tradable goods which is normally the driving engine behind economic and technological catching-up. The Estonian economy has failed to undergo the necessary structural change towards technologically more advanced employment structures and export patterns. Accordingly, Estonian economic policy needs to create a suitable business environment to support this kind of structural change.

Requirements for a New Business Model in Greece

The authors analyze Greece’s present business model and its deficiencies as well as the sustainability of the Greek debt burden. They conclude that the reform process is a necessary condition for structural change and economic recovery. Its completion and the promotion of private investment would accelerate the reconstruction of the Greek economy. In addition, a strongly conditioned haircut or a phasing out of the Greek debt burden is inevitable to render Greece’s public debt sustainable and to end the ongoing bailout process. The authors recommend discontinuing additional financial assistance to Greece and restoring its status as an ordinary member of the EU and the Eurogroup. The country would have full access to existing stabilization mechanisms but in return would have to observe the rules of the stability and growth pact and to accept EU economic policy coordination.

Estland: Im Wirtschaftlichen Aufholprozess Steckengeblieben? (Estonia: Got Stuck in Catching-Up?)

Deutsch Zusammenfassung: Estland gilt als ein Musterland fur den erfolgreichen Umbau einer sozialistischen Wirtschaftsordnung zu einer funktionstuchtigen Marktwirtschaft. Aufgrund des positiven Estlandbildes, das einen starken Kontrast zu den Krisengemalden aus sudeuropaischen Euro-Landern bildet, werden die Probleme Estlands oftmals ubersehen. Estland ist es in den Jahren seit der Unabhangigkeit kaum gelungen, zu den wohlhabenden Landern der Eurozone wirtschaftlich aufzuholen. Entsprechend gering ist das Mas an sozialer Sicherheit. In dem Beitrag wird der Fragen nachgegangen, was die Ursachen fur den schleppenden Aufholprozess sind und was die estnische Wirtschaftspolitik tun kann, um die Wohlstandslucke zu schliesen. English Abstract: Estonia is widely regarded as a paramount example for a successful transformation of a socialist economic system to a functioning market economy. Against the backdrop of this positive image which contrasts strongly with the crisis scenarios in Southern Europe the remaining problems of Estonia are often ignored. Estonia has hardly succeeded in catching-up economically with the richer countries of the euro area. Correspondingly, the level of social security is rather limited. In this paper the authors raise the question what the causes of the sluggish catching-up process are, and which opportunities Estonian economic policy has in order to close the wealth gap.

Structural Weaknesses as Barriers to Social Progress in Estonia

Although Estonia developed a functioning market economy, it has hardly succeeded in catching-up economically with the richer countries of the euro area. Correspondingly, the level of social security is still rather limited. To improve the income situation and enhance the social security systems it is essential to overcome the structural weaknesses of the Estonian economy, which is mirrored in the apparently low productivity level. The challenge for the Estonian policy is to create a suitable business environment to support the needed structural change.

Core Elements of Successful Reform in the Baltic Rim Countries

Since the early 1990s the Baltic Sea has been increasingly transformed into an inland sea within the European Union (EU). As a result of the treaty establishing the European Economic Space, important parts of the EU’s Single Market Programme were extended to the EFTA countries in 1993. This process continued through a second northern enlargement of the EU with Sweden and Finland joining the Union in 1995. Even the eastern and south-eastern Baltic Rim countries may become part of the EU in a few years. After the signing of an association agreement between Poland and the EU in 1991 (a so-called Europe Agreement) and the three Baltic states Estonia, Latvia, and Lithuania catching up with Poland in this respect in 1995, the integration of the Baltic Rim economies into the European Single Market is close to completion.