Showing posts with label Central Europe. Show all posts
Showing posts with label Central Europe. Show all posts

Sunday, November 24, 2019

Eastern Europe's 30-year revival: Has the transition from communism to capitalism been a "remarkable" success?

Czechoslovakia, 1989.

We'll be vacationing in Croatia (briefly) and Slovenia, both components of ex-Yugoslavia, and thus to American minds like mine that were formed during the Cold War, both belonging to "Eastern Europe."

Never mind that Yugoslavia was non-aligned and abstained from the Warsaw Pact. It remains that "central" always was a better modifier, and "Eastern" no longer is monolithic, now mandating the use of the lower case, eastern.

Is the present era the best and worst of times for these formerly communist countries? Here are three perspectives.

First, a rosier-than-not overview.

'This is the golden age': eastern Europe's extraordinary 30-year revival, by Shaun Walker (The Guardian)

Not everything is perfect – as reflected in political flux – but the region is wealthier and healthier than ever before

Maciej Grabski looks out over a panoramic view of the Baltic Sea, from the 32nd floor of the Olivia Star tower in Gdańsk, Poland.

“My children never saw the dark, devastated atmosphere that I remember from the 1980s,” he says. “Many people take things for granted now.”

The tower, built by Grabski’s construction company, is the centrepiece of a new business development on the outskirts of Gdańsk, and filled with the offices of multinational companies. It is next door to the squat, concrete Olivia sports hall, where the Solidarity trade union movement held its first congress in 1981, heralding the beginning of the end for communism in the region.

The economic demands of Solidarity, which had sprung up at the huge Gdańsk shipyard and was led by Lech Wałęsa, rippled through Poland and then the rest of central and eastern Europe during the 1980s. By the end of the decade, borders were open, regimes collapsed and the Berlin Wall, concrete symbol of 45 years of European division, was being pulled down.

What happened next was extraordinary, painful and unpredictable, as an entire region lurched into uncharted territory. Progress was fitful, messy and often unevenly distributed, sowing the seeds in some countries for the recent rise of populism.

But 30 years on from the heady days of autumn 1989, a range of metrics demonstrate that the transition from communism to capitalism has been a remarkable success.

Next, a more cautious take in economic terms.

Can the good run of central Europe’s economies last? at The Economist

The extremely open economies are vulnerable to external shocks

Fifteen years after they joined the EU, the four “Visegrad” states of central Europe (the v4) can be prouder of their economic achievements than of their patchy record on political reform. The Czech Republic, Hungary, Poland and Slovakia have increased their levels of gdp per head dramatically, and are converging with their mighty neighbour Germany. The Czechs are the richest, with a gdp per head that is 73% of Germany’s, followed by Slovakia with 63% and Hungary and Poland with around 57% each—and the gap continues to close, as their growth outpaces that of the behemoth.

Four main external forces have driven the remarkable successes of the four extremely open v4 economies. The first is their access to generous subsidies from the EU, which make up a sizeable chunk of their respective national incomes. Second is the munificent flow of remittances from millions of expat v4 citizens who now live and work in the EU, especially in Germany, Austria or Britain. A benevolent recent economic environment has also helped, especially the success of the German economy, by far their most important trading partner and the biggest or second-biggest investor in each country. And lastly, the four all started from a low base, enabling them to serve as cheap workshops for more developed economies. The danger is that all four of these factors are now petering out.

And, to recall, East Germany always was a special case.

Germans still don’t agree on what reunification meant at The Economist

Discontent may even be growing

On November 9th 1989, as the Berlin Wall tumbled, Hans-Joachim Binder was on night shift at the potash mine in Bischofferode, a village in the communist-ruled German Democratic Republic. Mr Binder, a maintenance worker who had toiled in the mine for 17 years, had no idea of the momentous events unfolding 240km (150 miles) to the east. The first sign something was up was when most of his colleagues disappeared to investigate what was happening at the border with West Germany, just ten minutes’ drive away. Only three returned to complete their shift.

Less than a year later Germany was reunited, capping one of the most extraordinary stories in modern history. Not only had a communist dictatorship collapsed, releasing 16m people from the fear of the Stasi (secret police) and the stultification of censorship. Unlike any other country ever freed from tyranny, the entire population of East Germany was given citizenship of a big, rich democracy. As a grand, if ill-fated, gesture of welcome the West German chancellor, Helmut Kohl, converted some of their worthless savings into hard currency at the preposterously generous exchange rate of one Deutschmark to one Ostmark.

More than 1m Ossies took advantage of their new freedom by moving to the West, where most thrived. Official statistics no longer counted this group—who were disproportionally young, clever, female and ambitious—as East Germans. For those who stayed behind, however, the 30 years since the fall of the Wall have been a mix of impressive progress, often taken for granted, and sour disappointment.

12 Days of Slovenia & Trieste (Part 1): Chapter 40 in an ongoing love affair with Europe.

Hungary, 1987.

Surely you know by now that my maiden voyage of exploration to Europe was in 1985, lasting three months and sticking largely to the well-worn backpackers' tourism routes in "Western Europe," as it was delineated at the time. 

Granted, geographically both Greece and Turkey lie to the east, and proved very exotic by Ohio Valley standards. Even today cynics doubt whether either of these countries will ever be "western" in any comprehensive sense, but it wasn't until my quick three-day visit from Helsinki to Leningrad (St. Petersburg) that my travels took me into the realm of Raygun's evil empire: Eastern Europe and the USSR.

It is no exaggeration to say that I was immediately hooked on further prospects to explore these seemingly unknown areas. I spent two months in east-central Europe in 1987, and three months in 1989. Much of this time was spent in Czechoslovakia, Hungary and East Germany. Smaller segments brought me to Poland, Yugoslavia, the former Baltic Republics and Bulgaria (Albania and Romania came later, in the 1990s).

It became evident very quickly that while it was easy to classify these places in one lump sum as belonging to the Warsaw Pact/East Bloc/Communist monolith, in fact each had distinct cultures and meaningful histories spanning centuries, prior to a mere five decades following World War II. Since the Berlin Wall's fall and the subsequent dismantling of the postwar settlement, I've continued to be intrigued, and we regularly dip back for visits into the east-central territories.

This time around it's Croatia and Slovenia, ending in Trieste (an Italian city, but only just barely), and as usual I've been asked why we go, especially in the chill of winter.

Actually the temperatures are about the same as Louisville around Thanksgiving, and they don't celebrate Thanksgiving in these places, which is a bonus for both of us. Besides, my wife is from Maine and she prefers cold-weather holidays; furthermore, it's off-season and travel is less expensive.

I can't deny that a measure of contrarianism contributed to my original interest in these locales. The idea of going where few Americans bothered was very appealing to me. Even better was the bargain price structure compared to capitalist Europe.

However there was a cost to low price. During Communist times it took extra effort (visas, mandatory currency exchanges, avoiding prohibited areas), as well as added time and difficulties in matters like communication. Each country had its own language, with fewer speakers of English. Usually there was a way to achieve one's itinerary, although it might take a while.

Those times are gone, and several former Warsaw Pact countries use the Euro. Seemingly millions of tourists inundate cities like Prague, where in 1989 you could lie down on the Charles Bridge and have a nap without being disturbed. Conversely, regions like Transylvania and eastern Slovakia receive far less in the way of throngs.

Following is a good introductory link to a part of the planet that still intrigues me these many years later.

20 Reasons Why Eastern Europe Is Extremely Underrated (And Worth Traveling to), by Nicco Martel (The Travel)

Sunday, June 09, 2013

Sandbags around the brewery?

You can search the web of all manner of stories pertaining to the most recent round of catastrophic floods in Central Europe, and draw conclusions as you will. Of particular interest to me is this one, as forwarded by my bicycling buddy BR.

Cesky Krumlov Floods 2013

In 2002 Cesky Krumlov and Prague suffered devastating floods as waters released from Lake Lipno rushed up the Vltava.

In 2003, we were biking along the Danube just to the south, and spent an evening in a rural guesthouse situated on the river. We were the first guests for the inn's re-opening, almost a year after flooding brought water into the second story.

During the 2002 floods in Cesky Krumlov, the Eggenberg brewery was badly damaged. It was back up and running by 2004, when my last guided motorcoach tour (to date ... maybe some sweet day) visited the town. I wonder if it took a hit this time?

If you ever have a chance to visit Cesky Krumlov, don't miss it. Eggenberg's lager is brilliant, the town is beautiful, and the imposing castle still has a bear pit.