strategy
Democratization and Transition from Plan to Market Economy
Tuesday, July 28th, 2009 | Film Reviews, University | 2 Comments
To understand the still ongoing political and economical processes in Eastern Europe (or especially in Czech Rep.) since 1989, we have to know something about the existing transition theories. This post gives you a short overview about the main theories predominating the transition research.
Basically there are four directions, which are of importance. It started in the 60-ies with the Systems-Theory of Talcott Parsons which postulates the development of so called ” evolution universals”. He argued that, like Darwin`s evolution of biological organisms, societies progress through their “capacity for generalized adaptation” to their environment. This is achieved mainly through the development of specialized institutions to perform the social functions necessary to meet increasingly specialized needs (structural differentiation). Evolution is then from traditional to modern societies, and progress can be charted via bureaucratic organization, money and market complexes, social stratification, cultural legitimation and the emergence of generalized universalised norms.
Seymor M. Lipset advanced Parsons` theory and developed a casual connection between economical development and democratization. According to this, a growing GDP entails a better education, growing prosperity, tolerance, moderate working style of policy, a consolidation of civil society and eventually democratic structures. This steps of development are essential for the neoliberal paradigm which focuses the free market economy with its constitutive criteria ( e.g. private ownership, free price formation, freedom of competition).
This so called Theory of Modernization and Parsons` Systems Theory expanded into the paradigm of the neoliberal institutions like the World Bank and the International Monetary Fund (Bretton-Woods institutions). While this neoliberal model of development has been implemented on several countries of the third democratization wave (like India, Latin-America, Portugal) more and more criticism began to rise. Mainly the over- simplification as well as the missing explanation for the economical development without further democratization such as in several Arabic countries have been criticized.
New approaches in the transition research began to become more and more accepted. The publication of Huntington`s “Clash of Civilization” in the beginning of the 90-ies focused on the cultural aspects of countries in transition. Cultural theorists assume a close relationship between the secularization of a society and its ability and success in developing democratic structures. Therefor some societies just cannot be democratized because of their special religious-cultural roots which cannot be just replaced by new institutions and values.
Another branch of research are the stakeholder theories, which look on the microscopic level at the small elite-groups which seem to control the transition processes in a country. According to this, different stakeholder combinations can be identified as well as possible activities and developments be fore-casted. This is the main advantage over the Systems and Modernizing theories.
All in one the four theories complement one another so that a stakeholder analysis cannot be made without a system theoretical background. The multidimensional question of the success of the Czech transition strategy as well as the initial situation at the retail market will be targeted in the next post.
Who moved my Cheese? – by Johnson, Spencer
Friday, December 26th, 2008 | Book Reviews | 1 Comment
This is a short, but clever story about two mice and two midgets living in a labyrinth looking for CHEESE all the time. The mice following their basic instinct – hunger – which is motivating them snooping and being teeming in hope to get new and more 
CHEESE. The two midgets, provided with intelligence more conscious in their decisions.
One day, both couples discover a warehouse of CHEESE at a time. The CHEESE is delicious and there is more of it than you need in a life-time! Happy about their finding, the two midgets are resting, eating the CHEESE not thinking about the future - enjoying the feeling of security. The mice are keeping on being on the lookout for CHEESE, not thinking about future and hoping to discover new sorts of more CHEESE!
After a while, the CHEESE warehouses are dispelled – all the CHEESE is gone – nobody knows WHERE and WHY! The mice, as well as the midgets have to fight for their livelihood again!
Now the strategies of the two couples are drifting apart.As usual, the mice are running around trough the labyrinth, looking out for NEW CHEESE. The midgets are sitting around – appalled, frustrated, angry – trying to understand who and why had suddenly taken THEIR CHEESE away from them! Time is passing, the two are speculating and puzzling about the present situation. Nobody is motivated to go out in the large and dangerous labyrinth to look out for NEW CHEESE. This is just too unfair and stressful to start from the beginning, not even knowing about the success of the new quest!
Eventually, one of the midgets takes the risk and goes out into the labyrinth, hoping to find a new warehouse of CHEESE. His partner preferred to stay and wait for CHEESE at the usual place – safe but hungry…- hoping somebody bringing him back HIS CHEESE.
Did you recognize yourself in one of the characters – `cause this is the point of this short-story, which is visualizing and simplifying diverse tricky situation out of our life. It makes us think about our own strategies to deal with problems and to solve them. The CHEESE – a picture of our values in life, our secret disires and hopes. The labyrinth – the difficulties we meet with, while trying to achieve a target.
This book probably helps you to find out the right strategy, offering ten strategic directions to the reader . Read it – and find out!