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Próchniak, Mariusz, Ryszard Rapacki, Adam Czerniak, Juliusz Gardawski, Bożena Horbaczewska, Adam Karbowski, Piotr Maszczyk, and Rafał Towalski. "Comparative capitalism in central and Eastern Europe – A test of similarity to Western Europe." Acta Oeconomica 73, no. 1 (March 27, 2023): 35–60. http://dx.doi.org/10.1556/032.2023.00004.
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AbstractWe aimed to enrich the empirical picture and to better understand the nature of post-communist capitalism in the new EU member states in Central and Eastern Europe (CEE11). Our main research goal is to assess the degree of similarity of the institutional architectures in these countries toward each of the four models of capitalism in Western Europe distinguished by Bruno Amable (2003), represented in our research by one Western European country being the most typical empirical approximation of a particular ‘ideal-typical’ model. The study is based on the application of a new method designed for the purpose of our research, the coefficients of similarity. Our empirical exercise shows that the CEE11 countries exhibited on average the greatest relative similarity to the Mediterranean model of capitalism, represented by Spain and Italy. At the same time, they also displayed a considerable institutional proximity to the Continental model of capitalism, represented by Germany, and – to a lesser extent – to two remaining benchmarks. These findings may be generalized as the prevalence of a polycentric pattern of institutional similarity of the CEE11 economies to the established models of Western European capitalism which makes the emerging post-communist capitalism a distinct research category and adds to its patchwork nature.
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Lynch, Julia, and Jonathan Hopkin. "Post-Crisis Political Change in Western Europe." Current History 117, no. 802 (November 1, 2018): 315–20. http://dx.doi.org/10.1525/curh.2018.117.802.315.
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Losonc, Alpar. "Is it possible to install social capitalism in post socialist transition?" Sociologija 49, no. 2 (2007): 97–116. http://dx.doi.org/10.2298/soc0702097l.
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Recently Claus Offe has raised the question concerning the fate of the European model of social capitalism. Can the model of social capitalism survive European integration amongst current tendencies? Offe assumes that this model has been challenged by the processes of globalisation and by the integration of postsocialist countries into the European Union. The working hypotheses of this article is that a relatively coherent answer to this question may be offered. The article is divided into three parts. The first part starts with Polanji?s socio-economic theory and emphasizes the importance of this approach for analyzing tendencies of capitalism in Western Europe and in post-socialist countries. The author argues that Polanyi?s theory enables us to explain the forms of embedded liberalism in Western Europe after 1945, as well as the orientation of non-embedded neoliberalism and the functioning of the workfare state after the crisis of the Keynesian welfare state. The central element of social capitalism, namely, the welfare-state, despite globalizing tendencies projected by neoliberalism, still has dimensions of continuity. In the second section it is argued that an asymmetrical structure has arisen between Western Europe and the non-Western part of Europe concerning the socialisation of capitalism. Neoliberalisation in accordance with the model of transferring ideal-type capitalism is much more strongly implemented in transition countries. In the third part the author pleads for a broadening of the meaning of welfare to take into account the ecological aspect of welfare in countries in transition. The author insists that embeddedness must also include socio-ecological aspects of transition processes in postsocialist countries. Moreover, this theoretical approach provides an opportunity to explain the failures in implementing neoliberalism in postsocialist countries. If we introduce socio-ecological aspects we are in a much better position to answer Offe?s question.
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Losonc, Alpar. "Is there an opportunity to establish the social-capitalism in the post socialist transition?" Panoeconomicus 53, no. 4 (2006): 407–25. http://dx.doi.org/10.2298/pan0604407l.
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Recently Claus Offe has put the question that concerns the fate of the European model of social capitalism: Can the model of social capitalism survive the European integration in the context of certain contemporary tendencies? Offe has presupposed that the mentioned model is challenged by the processes of globalization and the integration of the post socialist countries into the European Union. The working hypothesis of the article is that there is an opportunity to provide a coherent answer to this question. The article consists of two parts. In the first part the author starts with the Polanyi's socio-economic theory and emphasizes the importance of this approach for the analyzing of the tendencies of capitalism in Western Europe and in the post socialist countries. The author argues that with the Polanyi's theory we are able to explicate the forms of the embedded liberalism in Western Europe after 1945 and the orientation of non-embedded neo-liberalism and the functioning of the workfare state after the crisis of the Keynesian welfare state. Despite the tendencies of the globalization projected by neo-liberalism, the central element of the social capitalism namely, the welfare state, remains with the dimensions of the continuity. In the next part the author points out that there is an asymmetrical structure between the Western-Europe and non-Western part of Europe concerning the socialization of capitalism. The neoliberalisation in accordance with the model of the transfer of ideal-type of capitalism is more strongly implemented in the countries of transition. In addition, the mentioned theoretical approach provides opportunities to explain the failures of implementing of neo-liberalism in the post socialist countries. On the basis of the endorsing of the socio-economic aspects we can address the issue pointed out by Offe.
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Sumbai, Gasiano G. N. "Book Review: Giacomo Corneo. Is Capitalism Obsolete? A Journey through Alternative Economic Systems (translated by Daniel Steuer)." Tanzania Zamani: A Journal of Historical Research and Writing 11, no. 2 (September 1, 2019): 142–48. http://dx.doi.org/10.56279/tza20211126.
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Giacomo Corneo is a professor of Social Policy and Public Finance at the Free University of Berlin, Germany. He starts his analysis by arguing that capitalism is increasingly becoming unpopular in Europe due to its being wasteful as demonstrated in widespread unemployment, injustice and alienation. He points out that high level of inequality in wealth possession is a real threat to both shared prosperity and democracy in Western Europe. His main problem is how to make the world a better place where people share wealth and prosperity. This ideal world could be achieved through adoption of an alternative economic system that would eliminate the basic contradiction found within capitalism, namely that between the social nature of production and the private mode of appropriation of wealth. Alhough capitalism applies advanced science and technology in creating more wealth, its ironic nature is such that a few people enjoy power, wealth and privileges over the poor who are the majority. This creates a polarized society based on appropriation of wealth- the rich on one end and the poor on the other. Corneo engages us in a debate to find out an alternative economic system that will do away with these imbalances in the appropriation and distribution of wealth. Currently, wealth, power and privileges are concentrated on few capitalists with powers to make decisions affecting billions of people in this world. Capitalist principles, laws and institutions promote and protect the right to private property and power.
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Rose-Ackerman, Susan. "A Review of Geoffrey M. Hodgson, Conceptualizing Capitalism: Institutions, Evolution, Future." Journal of Economic Literature 55, no. 1 (March 1, 2017): 182–90. http://dx.doi.org/10.1257/jel.20161367.
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Capitalism and law go together in Geoffrey M. Hodgson's comprehensive analysis of the intellectual history and practical development of the capitalist system in Western Europe and North America. Given the breadth and depth of Professor Hodgson's reading in political economy and his reflections on its implications for the present and future of global capitalism, his book deserves to be widely read. Labeling his approach legal institutionalism, he argues that a legal system that supports capitalism and the market is necessary but not sufficient to sustain a fair and efficient economic system. The state makes efficient markets possible, but it must also deal with the inevitable tensions and the fundamental asymmetry between labor and capital. Tensions arise because labor cannot be used as collateral for the loans that are needed for large-scale capitalist enterprise. Hodgson has not developed the political implications of his conclusions in any detail, but his work ought to inspire research that explores the implications of his arguments for ongoing projects of nation building. (JEL D72, K10, O43, P14, P16)
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Myant, Martin. "Dependent capitalism and the middle-income trap in Europe na East Central Europe." International Journal of Management and Economics 54, no. 4 (December 31, 2018): 291–303. http://dx.doi.org/10.2478/ijme-2018-0028.
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Abstract The post-2008 slowdown in economic convergence by countries of east central Europe towards the level of western Europe is interpreted with the help of a concept of dependent capitalism. Convergence appeared to be rapid up to that year, but then stalled, albeit with differing results depending on the measure used. Dependent capitalism meant that the driver for economic growth comes from inward investment by multinational companies (MNCs). Domestically owned businesses failed when faced with international competition, and their agenda hampers policies supporting an active role from the state. Inward investment is attracted by low wages and has contributed to substantial growth, but the slowdown in investment was accompanied by much slower economic growth and dangers that past investment could turn into a burden on the external balance. The strategies pursued by incoming MNCs have brought areas of upgrading, but frequently leave technological levels somewhat behind those of western Europe. Even where they use the same technologies as in their home countries, wages still remain significantly lower. Achieving full convergence would require a different growth model following a substantial change in economic policies: this does not appear likely in the near future.
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Lachmann, Richard. "Origins of Capitalism in Western Europe: Economic and Political Aspects." Annual Review of Sociology 15, no. 1 (August 1989): 47–72. http://dx.doi.org/10.1146/annurev.so.15.080189.000403.
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Rehbein, Boike. "Capitalism and inequality." Sociedade e Estado 35, no. 3 (December 2020): 695–722. http://dx.doi.org/10.1590/s0102-6992-202035030002.
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Abstract According to the prevailing opinion, capitalism is a market economy governed by immutable laws and inequality is the result of competition between free and equal individuals on that market. This paper argues that capitalism, as developed in Western Europe in modern times, has more in common with organized crime than with a system of natural laws. It is rooted in the sale of church and common lands, the privatization of finance (especially public debt) and colonialism. However, its purpose is not the accumulation of wealth. It is merely a particular way of sustaining domination by a small group of people over the rest of the population. Domination in capitalism differs from earlier forms of domination in two ways: it is reproduced via the accumulation of wealth and it is not visible as such. Neither the purpose (domination) nor the functioning (systematic appropriation) is visible on the surface. Even Marx was led to believe that the economy is governed by laws which can be studied scientifically. The paper will argue against this belief by tracing the structures of domination to the reproduction of social inequality in capitalist societies.
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Betz, Hans-Georg. "The Two Faces of Radical Right-Wing Populism in Western Europe." Review of Politics 55, no. 4 (1993): 663–86. http://dx.doi.org/10.1017/s0034670500018040.
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During the past several years, radical right-wing populist parties have made impressive electoral gains in a growing number of West European countries. Their dramatic surge to political prominence has obscured the fact that these parties hardly form a homogeneous party group. Generally, it is possible to distinguish between neo-liberal and national populist parties. Both types of parties are a response to the profound economic, social, and cultural transformation of advanced societies interpreted as a transition from industrial welfare to postindustrial individualized capitalism. National populist parties are primarily working-class parties which espouse a radically xenophobic and authoritarian program. Neoliberal parties appeal to a mixed social constituency and tend to stress the marketoriented, libertarian elements of their program over xenophobic ones. Rather than being mere short-lived protest phenomena, radical right-wing populist parties are a reflection and expression of new political conflicts created by the transition to postindustrial capitalism.
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Cohn, Samuel. "Coercive Capitalism." Sociology of Development 7, no. 2 (2021): 117–26. http://dx.doi.org/10.1525/sod.2021.7.2.117.
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Coercive capitalism is development based on the use of force to dispossess either land or labor. Early macrosociologists, both functionalist and conflict-oriented, believed that feudal systems were based on the use of force but that capitalism is based on coercion-free free markets. Wallerstein argued that coercive capitalism exists in the periphery of world systems. We argue that coercion is endemic to all capitalism. Much of the land on which capitalism is based, including all of the Western Hemisphere, was seized from aboriginal populations. Land seizure was common in historic Europe. Forced labor existed until very recently in both bound apprenticeships and prison work crews. Coercion is used extensively in land acquisition for contemporary capitalism. It can take the form of legal sanctions exerted against the defenseless, or the use of paramilitaries and gangsters to exert pressure on the landholding poor.
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Rapacki, Ryszard, and Adam Czerniak. "Emerging models of patchwork capitalism in Central and Eastern Europe: empirical results of subspace clustering." International Journal of Management and Economics 54, no. 4 (December 31, 2018): 251–68. http://dx.doi.org/10.2478/ijme-2018-0025.
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Abstract The main aim of this paper was to shed a new empirical light on the nature and most salient features of the evolving postcommunist capitalism in 11 Central and Eastern European (CEE11) countries against the backdrop of Western European models of capitalism. The research approach capitalizes on the conceptual framework put forward by Amable [2003, The diversity of modern capitalism, Oxford University Press, Oxford] , i.e., it seeks to identify the current clusters or models of capitalism in 25 European Union (EU) countries in six institutional areas. However, in contrast to the original Amable’s methodology, the subspace clustering method was used, what allowed to take into account a vast set of 132 institutional measures and to analyze their change between 2005 and 2014. The main finding is that CEE11 countries developed their own distinct model of capitalism dubbed “patchwork capitalism.” In all but two areas, i.e., product market competition and financial intermediation, postcommunist countries form their own institutional clusters that are substantially different from those observed in Western EU countries. In addition, the paper shows that each CEE11 country followed its own distinct vector of change, which eventually led to a unique patchwork of institutions. Yet, the institutional variance within the region is smaller than the difference between CEE11 countries and other country clusters in the EU.
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Mulaj, Jeta. "‘Stabilising the Balkans’." Historical Materialism 25, no. 4 (February 14, 2017): 215–29. http://dx.doi.org/10.1163/1569206x-12341545.
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Abstract This review essay discusses Welcome to the Desert of Post-Socialism: Radical Politics After Yugoslavia. This volume, edited by Srećko Horvat and Igor Štiks, critiques a reductive neoliberal narrative regarding the Balkans in relation to Western Europe by examining the disastrous consequences of the transition of post-socialist countries to capitalism. The volume provides a critical engagement with socialist Yugoslavia and an affirmation of the possibilities of radical anti-capitalist struggles. This review examines the critique of transition politics by focusing on concepts of stability, racism and questions of temporality.
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Wisman, Jon D. "Should Formerly Socialist Economies Attempt to Leapfrog Classical Capitalism?" International Journal of Social Economics 20, no. 2 (February 1, 1993): 12–26. http://dx.doi.org/10.1108/03068299310025534.
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Formerly socialist economies of Eastern Europe have been advised by the West to adopt the property rights of classical capitalism. Yet the Western economies from which this advice emanates are all struggling to overcome productivity stagnation, resulting from the tensions between the interests of capital and labour. Experiments range from quality circles to far fuller worker participation in decision making and ownership. However, these experiments are coming forth slowly and timidly. Once in place, property rights are exceedingly difficult to alter. Thus those property rights chosen within East European economies over the next several years may be those which define these economies for the foreseeable future. Consequently, it would be an ironic and tragic twist of fact if East European economies were to turn now towards classical capitalism only to find that the future belongs to post‐capitalist forms of productive organization.
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Maszczyk, Piotr. "The comparative empirical analysis of the social protection system in selected Central and Eastern European countries: Emerging models of capitalism." International Journal of Management and Economics 56, no. 2 (May 20, 2020): 159–75. http://dx.doi.org/10.2478/ijme-2020-0010.
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AbstractThis article analyzes the institutional architecture and the level of similarity between the social protection system in 11 new EU member states from Central and Eastern Europe and chosen Western European countries, representing four different models of capitalism identified by Amable. In the selected institutional area, a comparative analysis was performed, and based on it, similarity hexagons were created. They serve the purpose of comparing Central and Eastern European (CEE) countries with Western European countries of reference. The dynamic approach adopted in this study—two different time periods were compared—allows an analysis of path dependence and the evolution of institutional architecture over time. The analysis indicates that in 2014, in the area of social protection, almost all CEE countries, apart from Latvia and Romania, were most comparable to the Continental model of capitalism represented by Germany. Nevertheless, the variety of results for the individual variables (especially input and output variables) and substantial changes between 2005 and 2014 also show that the model of capitalism prevailing in Central and Eastern Europe in the area of the social protection system is evolving constantly at a very fast pace and thus currently may be called a hybrid or even patchwork capitalism.
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Ristic, Irena. "Religion as a factor of political culture and economic development." Filozofija i drustvo, no. 28 (2005): 145–61. http://dx.doi.org/10.2298/fid0528145r.
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In his essay ?The Protestant Ethic? Max Weber explains the specific economic development and the foundation of capitalism in Western Europe due to the appearance of protestant sects and the ?spirit of capitalism?. By doing so, Weber assigns religion a significant place among the factors of social and economic development. Taking Weber?s theory and argumentation as a starting point, this article drafts a thesis on ?orthodox ethic? and determines its role in the development of the ?spirit of capitalism? in orthodox countries. For that purpose this article compares political-historical circumstances on the territory of the Western and Eastern Church on one, and pictures the theological-philosophical basis of both Protestantism and Orthodoxy on the other side.
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Pradella, Lucia. "The working poor in Western Europe: Labour, poverty and global capitalism." Comparative European Politics 13, no. 5 (April 20, 2015): 596–613. http://dx.doi.org/10.1057/cep.2015.17.
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Horbaczewska, Bożena. "Comparative empirical analysis of financial intermediation systems in Central and Eastern Europe." International Journal of Management and Economics 55, no. 3 (September 30, 2019): 250–67. http://dx.doi.org/10.2478/ijme-2019-0016.
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Abstract The purpose of this paper is to evaluate the level of similarity between financial systems in selected Central and Eastern European countries (CEE11) and four models of capitalism in Western Europe identified by B. Amable [The diversity of modern capitalism, 2003]. A comparative analysis in this institutional area was done on the basis of six variables. Three of them represent inputs, that is, institutional determinants, and other three variables describe outputs of institutional regulations. For each of them coefficients of similarity between a CEE11 country and a selected Western European country were calculated, and based on it the similarity hexagons were created. In this paper, two pictures of the institutional arrangements were taken: for 2005 and for 2014. Additionally, an analysis of changes that took place in institutional solutions in the CEE11 countries, based on the variables and the coefficients of similarity, was carried out. The analyses showed that in the area of financial intermediation, the group of CEE11 countries in 2005 was characterized by the greatest similarity to the Continental model of capitalism. The same investigations carried out for 2014 indicate a significant shift in the analyzed area toward solutions typical of the Mediterranean model.
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Li, Bowen. "Disenchantment: Liang Qichao's Post-War European Travel and Ideological Shift." Transactions on Social Science, Education and Humanities Research 3 (December 28, 2023): 52–57. http://dx.doi.org/10.62051/k04r6a08.
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Since the modern era, Western culture has acquired modern attributes due to its early industrialization. The political and economic systems of capitalism, and even its values, have become the aspirations of modern China. As a representative of the intellectual group learning from the West, Liang Qichao once regarded the Western capitalist society as the direction for China's modernization. However, the outbreak of World War I changed Liang Qichao. The various contradictions in post-war Europe and the perverse actions of imperialism led Liang Qichao to deeply reflect on Western civilization. He no longer looked up to the West but instead re-examined the valuable values of Chinese civilization, establishing cultural confidence. In fact, the shift in Liang Qichao's thinking is not an isolated case but a microcosm of the cultural awakening of the entire group of Chinese intellectuals learning from the West.
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Szelenyi, Ivan, and Péter Mihályi. "China, Eastern Europe and Russia compared." Acta Oeconomica 70, S (October 16, 2020): 85–93. http://dx.doi.org/10.1556/032.2020.00027.
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AbstractAfter the collapse of the Berlin Wall it was conceivable that China would follow the path towards the cessation of communism, as it happened in the successor states of the USSR, Yugoslavia and the East European satellite states of the Soviet Union. But the Communist Party of China (CPC) managed to retain control and avoided the Russian and East European collapse, a full-fledged transition to capitalism and liberal democracy. For a while, China was on its way to market capitalism with the possible outcome to turn eventually into a liberal democracy. This was a rocky road, with backs-and-forth. But the shift to liberal democracy did not happen. The massacre at Tiananmen Square in 1989, approved by Deng Xiaoping, was a more alarming setback than the contemporary Western observers were willing to realize. This paper presents an interpretation of the changes under present Chinese leader, Xi Jinping in a post-communist comparative perspective.
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Gardawski, Juliusz, and Rafał Towalski. "The comparative analysis of the industrial relations systems in Europe." International Journal of Management and Economics 56, no. 1 (March 31, 2020): 42–62. http://dx.doi.org/10.2478/ijme-2020-0003.
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Abstract This article aims to quantify the institutional similarities between industrial relations systems in 11 Central and Eastern European countries (CEE11), on the one hand and each of the four models of capitalism in Western Europe identified by Amable [2003], on the other hand. The comparative analysis was performed on the basis of six variables. Three of them represent inputs or institutional determinants of industrial relations. Another three variables represent outputs or the labor market performance. For each variable, the similarity coefficients between CEE11 countries and four reference EU15 economies representing Western European models of capitalism were calculated. Based on these coefficients, the hexagons of similarity were built. The analyses led us to some general observations. In 2005, most of the countries in the region developed industrial relations systems similar to the continental model, what can be interpreted as a strategy to meet the requirements imposed on these countries in the process of European integration. After accession, most of the countries abandoned “social partnership” ship and started the cruises to the Anglo-Saxon model.
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Redini, Veronica. "Commodity Fetishism Again. Labour, Subjectivity and Commodities in “Supply Chains Capitalism”." Open Cultural Studies 2, no. 1 (November 1, 2018): 353–62. http://dx.doi.org/10.1515/culture-2018-0032.
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Abstract The aim of this essay is to reconnect Marx’s analysis of commodity fetishism and the use that he makes of this anthropological category with a general critique of global capitalist relationships. Based on Marx's anthropological insights into the concept of fetishism, it explores the political relationship between labour, subjectivity and commodities in supply chains capitalism. For this purpose, it empirically examines the materials of ethnographic research on the production of Italian companies that produce in an Eastern European country (Romania) and then sell mainly to countries in Western Europe. In this way, the spatial separation between the places where the investments are made (production) and those where profits are generated (market) becomes very clearcut, just like the alienating division between people and the products of their work. In the light of the Marxian analysis of the commodity form, this detachment will be analysed in a fragment of the productive, organisational and social mosaic of contemporary capitalism.
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Dolphin, Amy C., and Karl-Ludwig Ay. "Geography and Mentality Some Aspects of Max Weber's Protestantism Thesis." Numen 41, no. 2 (1994): 163–94. http://dx.doi.org/10.1163/156852794x00102.
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AbstractIn his essays on the Protestant Ethic and the Spirit of Capitalism Max Weber proceeds from the observation that in Germany there is a clearly recognizable difference between the economic behaviour of Catholics and Protestants. As one of the reasons for this difference, the essays reveal-as a guiding principle for people's conduct of life-the principle of worldly asceticism inherent in Protestantism. This, Weber said, especially contributed to the formation of modern bourgeois capitalism in the occidental world. This thesis was mainly developed on the evidence of phenomena which Weber observed in Western Europe and North America and which he himself related to Calvinism. The problem now is that the Germany of Weber's time, as a leading industrial state, participated in modern western capitalism without Calvinism playing for the German Protestants a role which would have been in any way comparable to its role in the more western countries. Detailed examination of governmental, economic, and social conditions in the history of the denominalisation of some German territories and the comparison with the living conditions of Protestants in Western Europe and America leads to the conclusion that the later development of bourgeois economy and what I would like to call "Word Culture" (cf. p. 176f.) depended on the following factors: on with what methods and with what severity the rulers of the Reformation Era succeeded in imposing their own personal choice of faith upon their subjects or how far they allowed things to take their course without interference; then on whether they in this way curtailed, permitted or even supported the development of that capitalist and bourgeois economic spirit and "Word Culture" which had its roots as far back as the pre-Reformation era and which had then been boosted by Calvinism. Both individual belief and the rulers' power over this belief influenced equally vigorously and lastingly the mentality of all people concerned. Even more generalized: depending on whether and to what extent the religious and intellectual culture of a society are subjected to state oppression and coercive formation over a long period of time, the intellectual culture and economic attitude and potential of this society will develop. Life-style, economic ethic and cultural profile of many later generations depend on this.
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Cui, Xindan. "Re-Read Marx’s Two Letters About the Development Path of Russia in His Later Years." Studies in Social Science & Humanities 2, no. 1 (January 2023): 25–30. http://dx.doi.org/10.56397/sssh.2023.01.05.
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Marx’s two letters on the path of Russian social development in his later years clearly reflected Marx’s vision for the development path of Eastern society. Through a careful analysis of the texts of the two letters, it can be found that Marx believed that Russian society should not repeat the old way of Western Europe, which stripped peasants from the land and developed capitalist cities and industries. Instead, Russia should preserve the land ownership foundation of rural communes, feed agriculture with industry, import advanced technology and productivity from Europe, and transition to communism without going through the Caudine Forks of capitalism. Marx’s conception of Russia’s development path has a theoretical enlightening significance for our understanding of the Marxist social development model. This assumption provides a new enlightenment for the study of the regularity problem of social history and has a methodological guiding significance for the development of the Chinese model.
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Trivellato, Francesca. "The Ghosts of Max Weber in the Economic History of Preindustrial Europe." Capitalism: A Journal of History and Economics 4, no. 2 (June 2023): 332–76. http://dx.doi.org/10.1353/cap.2023.a917621.
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Abstract: During the past fifty years, economic historians trained in economics have turned Max Weber into a champion of the cultural foundations of economic growth that he was not. The article examines the reasons and consequences of this misappropriation. It begins by highlighting Weber’s aversion to monocausal explanations and identifies two lines of argument in his voluminous writings on the historical development of Western capitalism: one stressing religious values and one focusing on political and legal institutions. While Weber never fully reconciled these two lines of argument, he considered them complementary rather than mutually exclusive. The article continues by tracing the engagement (or lack thereof) with Weber in the work of Douglass C. North and in a recent flurry of papers on the “economics of religion” that ostensibly tests the empirical validity of The Protestant Ethic and the Spirit of Capitalism (1905). It then discusses the return of interest in the coevolution of cultural and institutional processes of change among some economists and political scientists. Throughout, the article signals how this reception history went hand in hand with a decline in exchanges between economists and scholars in other disciplines. Ultimately, it argues for the importance of incorporating the history of disciplines in our disciplinary practices. More specifically, it stresses the continued relevance of Weber’s research agenda for the comparative and historical study of capitalisms (in the plural), in spite of the fact that many of his conclusions appear now outdated.
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Faccio, Mara, Larry H. P. Lang, and Leslie Young. "Dividends and Expropriation." American Economic Review 91, no. 1 (March 1, 2001): 54–78. http://dx.doi.org/10.1257/aer.91.1.54.
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Whereas most U.S. corporations are widely held, the predominant form of ownership in East Asia is control by a family, which often supplies a top manager. These features of “crony capitalism” are actually more pronounced in Western Europe. In both regions, the salient agency problem is expropriation of outside shareholders by controlling shareholders. Dividends provide evidence on this. Group-affiliated corporations in Europe pay higher dividends than in Asia, dampening insider expropriation. Dividend rates are higher in Europe, but lower in Asia, when there are multiple large shareholders, suggesting that they dampen expropriation in Europe, but exacerbate it in Asia. (JEL G34, G35)
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Paska, Imre. "Change of system in Hungary." Zbornik Matice srpske za drustvene nauke, no. 127 (2009): 33–52. http://dx.doi.org/10.2298/zmsdn0927033p.
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The sociologists in Hungary have been treating the emerging social system as the new capitalism. This system is different in relation to the classical social systems of Western Europe. The transformation of the system was directed from above, in accordance with this we could speak on the reform-dictature of elites. There was no transition but drastic transformation led by political parties and their clients. This kind of transformation did not allow the deep articulation of the national interests and has made an illusion concerning the capitalism. Namely, the citizens of Hungary are convinced that there is only one type of capitalism, neoliberal capitalism. We are witnesses of dissatisfaction and protests in Hungary, and the EU and its interest-based coordination could be described as the hindrance concerning the irresponsible movements.
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Müller, Klaus. "‘Modernising’ Eastern Europe: theoretical problems and political dilemmas." European Journal of Sociology 33, no. 1 (June 1992): 109–50. http://dx.doi.org/10.1017/s000397560000638x.
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The upheavals in the Eastern European countries have demonstrated to the social sciences in a painful manner that they do not dispose of any adequate theory suited to grasp the dynamics and scope of the processes taking place there. Western sociology has won its categories from analysing Western societies and, in a premature manner, come to a generalised concept of society as such. Absorbed by the problems of advanced capitalism, it was not prepared for the collapse of the Easterns systems. Exploring socialist societies has, until recently, pre-eminently been a topic of specialised disciplines, such as Eastern European Studies, Soviet Studies, the Theory of International Relations, Comparative Economics and Development Studies. Its theory-building has remained too closely tied to pre-defined questions, to official documents, uncertain and precarious data or to ideological givens, to be able to assess realistically the developmental dynamics of Eastern societies. The exchange of information between Eastern and Western scholars has been highly selective, hence seldom resulting in mutual fertilisation.
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Próchniak, Mariusz. "The Analysis of Institutional Environment in the Area of Product Market Competition in the New EU Member States: What Do the Data Say About the Models of Capitalism Emerging in the CEE Countries?" International Journal of Management and Economics 54, no. 4 (December 31, 2018): 304–27. http://dx.doi.org/10.2478/ijme-2018-0029.
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AbstractThe paper analyzes the institutional architecture and the effects of product market competition in 11 countries of Central and Eastern Europe (CEE). The aim of the research was to find out how similar or dissimilar are the CEE countries in the area of product market competition compared with the four models of capitalism prevailing in Western Europe: the Anglo-Saxon (liberal) model (the UK), the continental model (Germany), the Scandinavian (Nordic) model (Sweden), and the Mediterranean one (Spain). The research method involves calculations of the coefficients of similarity and the analysis of polygons, being the extension of our own concept of the hexagons of similarity. The dynamic approach adopted in this study allows to examine the path dependence in order to assess how the institutional environment evolved over time. The analysis indicates that almost all CEE countries were the most similar to the Mediterranean model of capitalism represented by Spain. However, the variety of results for the individual variables is also a proof that the model of capitalism prevailing in CEE in the area of product market competition may be called a patchwork capitalism.
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Emmer, P. C. "Capitalism Mistaken? The Economic Decline of Surinam and the Plantation Loans, 1773–1850; A Rehabilitation." Itinerario 20, no. 1 (March 1996): 11–18. http://dx.doi.org/10.1017/s0165115300021501.
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Has Europe grown rich because it expanded overseas? According to recent scholarship the answer must be no. During the period between 1500 and 1750 Europe's economy did not provide its inhabitants with a per capita income that was significantly higher than that in other parts of the world. Europe – and only the Western part of it – started to become richer after the Industrial Revolution from 1750 onwards. This far most attempts at linking the expansion of Europe to the Industrial Revolution have failed.
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Aage, Hans. "The triumph of capitalism in Russia and Eastern Europe and its western apologetics." Socialism and Democracy 19, no. 2 (July 2005): 3–36. http://dx.doi.org/10.1080/08854300500121896.
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Hassner, Pierre. "Europe between the United States and the Soviet Union." Government and Opposition 21, no. 1 (January 1, 1986): 17–35. http://dx.doi.org/10.1111/j.1477-7053.1986.tb01106.x.
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‘EUROPE BETWEEN THE UNITED STATES AND THE SOVIET UNION’. This subject could have been formulated in different terms, such as: ‘Europe between East and West’ or: ‘The European states between the two empires’ or: ‘The two Europes and the two superpowers’. Europe is at the same time one geographically and culturally, divided into nations, and split into two camps. The United States and the Soviet Union are both two global and two European powers, two ordinary states and the leaders of two alliances, the standard bearers of two ideologies. If one were discussing Korea instead of Europe, one would hesitate between calling our study ‘Korea between East and West’ and ‘Korea between North and South’. Europe is that continent where political divisions seem cast in the stone of history and geography, where the opposition between East and West seems to have at the same time a geopolitical meaning (that of maritime versus continental coalition), an ideological one (liberal democracy or capitalism versus communism) and a cultural one (the Western Church versus the Eastern one, Rome versus Byzantium).
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O'Connor, James. "20. Jahrhundert mit beschränkter Haftung: Kapital, Arbeit und Bürokratie im Zeitalter des Nationalismus." PROKLA. Zeitschrift für kritische Sozialwissenschaft 25, no. 100 (September 1, 1995): 381–408. http://dx.doi.org/10.32387/prokla.v25i100.951.
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With the aid of three categories - which are not only meant geographically -"West" (Western Europe and North America), "East" (Eastern Europe) and "South" (the Third World), the main features of the transformation processes ofthe 20th century are analysed: the interrelations between capital, labor and community, the development and integration of the different oppositional movements, the rise of bureaucracy and the welfare state and their following decline, the importance of nationalism and national states and the transition to a global capitalism.
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Schmalz, Stefan, and Nico Weinmann. "Between Power and Powerlessness: Labor Unrest in Western Europe in Times of Crisis." Perspectives on Global Development and Technology 15, no. 5 (October 10, 2016): 543–66. http://dx.doi.org/10.1163/15691497-12341406.
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The article analyzes the recent wave of labor unrest in Western Europe after the 2008 financial and economic crisis. It draws theoretically on the global capitalism school and a labor power resource approach, and empirically on a database on social conflict (JenaConDa). Unlike the last cycle of contention between 1968 and 1973, the post-2008 conflicts have changed in two respects: First, the uneven and combined development of European integration has led to a spatially uneven distribution of workers’ protests. Second, in the current wave of conflict, new forms of non-institutionalized conflicts have emerged.
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Gundogan, Dragana, and Mladen Radulovic. "A relation between high-school students’ achievement and their socioeconomic status in post-Yugoslav countries and Western Europe." Sociologija 65, no. 4 (2023): 610–24. http://dx.doi.org/10.2298/soc2304610g.
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In the contemporary global context of growing inequalities, it is important to explore what effect socio-economic status has on educational practices and to investigate educational inequalities. Having in mind that post-Yugoslav societies have a shared past of being a part of the same socialist country, we wanted to compare the importance of socio-economic status in post-Yugoslav countries and countries with longer capitalist tradition from Western Europe. Besides, bearing in mind Serbia?s specific path towards capitalism, our goal is to compare it to other countries on the same relationship between student achievement on the external testing and socioeconomic variables. Since we tend to use a comparative approach, we utilize the data of PISA study. In order to observe the tendencies, we use the data from two waves of study (2012 and 2018). For analysis of student achievement, we rely on the students? scores on the reading, Mathematics and Science performance while the PISA?s Index of economic, social and cultural status was a proxy for the socio-economic status. Results are revealing that there is a stronger correlation between socio-economic status and student achievements in Western Europe compared to post-Yugoslav countries and that there are significant differences in the correlation between examined variables among post-Yugoslav countries.
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Bernier, Lucie. "CHRISTIANITY AND THE OTHER: FRIEDRICH SCHLEGEL'S AND F. W. J. SCHELLING'S INTERPRETATION OF CHINA." International Journal of Asian Studies 2, no. 2 (June 30, 2005): 265–73. http://dx.doi.org/10.1017/s1479591405000124.
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Every culture is self-centred and distinguishes itself from others which are inadvertently positioned off-centre. Thus ancient Greece called the non-Greeks barbarians, and the ancient Chinese called their own country the Celestial Empire and considered those who did not practise their culture as barbaric. In the modern age, Europe distinguished itself from the non-West principally by two features: Christianity and capitalism. Generally, it is considered that Christianity produced capitalism (Max Weber), so that the former can really be considered the foundation of Western Culture. In my paper, I demonstrate that Christianity is used to measure and construct non-European peoples and cultures within the western perception of the philosophy of history. Christianity is given supreme value, and related religions are considered to be corrupted in varying degrees, with non-theistic cultures bringing up the very rear.
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Somers, Margaret R. "Class formation and capitalism. A second look at a classic." European Journal of Sociology 37, no. 1 (May 1996): 180–202. http://dx.doi.org/10.1017/s000397560000802x.
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Studies of class-formation have long been dominated by an espitemology of absensethe study of the absence of Marx's predicted revolutionary class consciousness among the Western working class. Katznelson's and Zolberg's pathbreaking Working-Class Formation: Ninetenth-century Patterns in Western Europe and the United States (1986) posed a major challenge to this tradition. Instead of being seen as deviant or exceptional, moreover, the individual cases of class formation are analysed as variations that can only be explained by each nation's pattern of historicalprimarily politicalformation. An instant classic, Working-Class Formation has not to date been surpassed by subsequent studies. This essay reviews the strenghts and the weaknesses of this classic volume, suggesting in the final analysis that it does not quite realize the full extent of its radical implications.
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Duzgun, Eren. "Capitalism, Jacobinism and International Relations: Re-interpreting the Ottoman path to modernity." Review of International Studies 44, no. 2 (October 17, 2017): 252–78. http://dx.doi.org/10.1017/s0260210517000468.
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AbstractDebates over ‘modernity’ have been central to the development of historical-sociological approaches to International Relations (IR). Within the bourgeoning subfield of International Historical Sociology (IHS), much work has been done to formulate a historically dynamic conception of international relations, which is then used to undermine unilinear conceptions of global modernity. Nevertheless, this article argues that IHS has not proceeded far enough in successfully remedying the problem of unilinearism. The problem remains that historical narratives, informed by IHS, tend to transhistoricise capitalism, which, in turn, obscures the generative nature of international relations, as well as the fundamental heterogeneity of diverging paths to modernity both within and beyond western Europe. Based on the theory of Uneven and Combined Development, Political Marxism, and Robbie Shilliam’s discussion of ‘Jacobinism’, this article first reinterprets the radical multilinearity of modernity within western Europe, and then utilises this reinterpretation to provide a new reading of the Ottoman path to modernity (1839–1918). Such a historical critique and reconstruction will highlight the significance of Jacobinism for a more accurate theorisation of the origin and development of the modern international order, hence contributing to a deeper understanding of the international relations of modernity.
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Lane, David. "Global Neoliberal Capitalism and the Alternatives." Noonomy and Noosociety. Almanac of Scientific Works of the S.Y. Witte INID 3, no. 1 (2024): 21–34. http://dx.doi.org/10.37930/2782-618x-2024-3-1-21-34.
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The paper describes the main features of neoliberalism, its benefits and drawbacks, and the reasons why it should be replaced. The author’s arguments are based on a study of the strengths and weaknesses of neoliberalism. He reveals the reasons behind its popularity and identifies its main shortcomings and ways to eliminate it. The fundamental question of this study is an attempt to find a viable alternative to the neoliberal agenda and possible ways of its practical implementation in the foreseeable future. The latter requires redefining a space for alternative political and economic forms of a developed industrial society, including looking through a prism of the concept proposed by Professor S.D. Bodrunov’s: a transition to reindustrialization, greater social solidarity based on state forms of economic coordination. The paper makes a valuable contribution to the discussion by proposing a hybrid form of regulated market socialism that could be adopted by the national economies of Russia, the United States and Western Europe.
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Lane, David. "Global Neoliberal Capitalism and the Alternatives." Noonomy and Noosociety. Almanac of Scientific Works of the S.Y. Witte INID 3, no. 1 (2024): 15–25. http://dx.doi.org/10.37930/2782-6465-2024-3-1-15-25.
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The paper describes the main features of neoliberalism, its benefits and drawbacks, and the reasons why it should be replaced. The author’s arguments are based on a study of the strengths and weaknesses of neoliberalism. He reveals the reasons behind its popularity and identifies its main shortcomings and ways to eliminate it. The fundamental question of this study is an attempt to find a viable alternative to the neoliberal agenda and possible ways of its practical implementation in the foreseeable future. The latter requires redefining a space for alternative political and economic forms of a developed industrial society, including looking through a prism of the concept proposed by Professor S.D. Bodrunov’s: a transition to reindustrialization, greater social solidarity based on state forms of economic coordination. The paper makes a valuable contribution to the discussion by proposing a hybrid form of regulated market socialism that could be adopted by the national economies of Russia, the United States and Western Europe.
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Abdurrahman, Muslim. "ISLAM POSMODERNISME." El-HARAKAH (TERAKREDITASI) 9, no. 3 (December 12, 2008): 183. http://dx.doi.org/10.18860/el.v9i3.4641.
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<p class="Bodytext20">In this modem era, Islam, in fact, has a significant influence in politics and culture. Western people regard this as a symptom of the emergence of Islamic fundamentalism. It is a reaction of Islam to modernism and capitalism. Even though the term is not purely from Islamic terminology, for Western academicians it virtually represents Islam. Even, they relate it to terrorist movements. It takes us back to remarkable phenomena of secularism embedding that happened in Europe two decades ago. Modernism and capitalism have effects not only on Islam but also on other non-Islamic countries. Therefore, it is not surprising if then in this era of global capitalism Western academicians try to eliminate the thesis of secularism in their fundamentalism project. In the third millennium, after the fall of communism in Russia and Western Europe, Western is interested in studying Islam, if truth to be told, it is more intense. They are afraid of the influence of Islam for which the fundamentalists struggle to realize Islam as the grand narrative, a blue print of universal ideology that often impedes Western hegemony with its liberal democracy.</p><p> </p><p>Pada zaman modern ini, nyatanya Islam memiliki pengaruh signifikan dalam Politik dan budaya. Orang Barat menganggap ini sebagai pertanda kemunculan fundamentalis Islam. Hal itu adalah reaksi Islam terhadap modernisme dan kapitalisme. Meskipun begitu, istilah tersebut tidak berasal dari istilah Islam, hanya saja menurut akademis Barat, istilah tersebut merepresentasikan Islam secara virtual. Bahkan, mereka mengaitkannya dengan gerakan teroris. Hal ini membawa kita kembali pada fenomena dahsyat sekularisme yang terjadi di Eropa dua dekade lalu. Modernisme dan kapitalisme berefek tak hanya pada Islam tapi juga pada negara-negara non-Islam. Maka dari itum tidak mengejutkan jika dalam era kapitalisme global, akademisi Barat mencoba menyingkirkan hipotesis sekularisme dalam proyek fundamentalismenya. Pada milenium ketiga, pasca runtuhnya komunisme di Rusia dan Eropa Barat, negara Barat mulai tertarik mempelajari Islam. Karena jika kebenaran diungkapkan, maka akan lebih hebat. Mereka takut akan pengaruh Islam bagi para fundamentalis yang berjuang untuk menyadarkan Islam sebagai narasi besar, sebuah <em>blue print</em> ideologi universal yang sering mengahalangi hegemoni Barat dengan demokrasi liberalnya.</p>
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Gaspar, Antonio Tejera, and Eduardo Aznar Vallejo. "Lessons from the Canaries: the first contact between Europeans and Canarians c. 1312–1477." Antiquity 66, no. 250 (March 1992): 120–29. http://dx.doi.org/10.1017/s0003598x00081138.
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The first contacts between the prehistoric cultures of the Canary Islands and western civilization occurred in the European expansion of the late Middle Ages. Their ultimate colonization was intimately related to this expansion, driven by new economic forms, including ‘commercial capitalism’ or ‘pre-capitalism’, which affected economic and intellectual structures throughout Europe, the economic characterized from then on by innovation, risk and increasing turnover; and the intellectual by the concept of ‘profit’ in place of ‘service’.The practical transition can be seen in the technology that supported expansion: transport (new types of ships, cartography, systems of navigation, etc.); financial systems (nonmonetary payment, insurance, commercial credit, etc.); and mercantile institutions (commercial societies, consulates, postal services, etc.).
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Bellamy, Richard. "Schumpeter and the Transformation of Capitalism, Liberalism and Democracy." Government and Opposition 26, no. 4 (October 1, 1991): 500–519. http://dx.doi.org/10.1111/j.1477-7053.1991.tb00408.x.
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RECENT EVENTS IN EASTERN EUROPE HAVE GENERATED A large degree of uncritical triumphalism amongst certain Western commentators. The collapse of the communist regimes in these countries as the result of their failure to manage their economies and the consequent demand on the part of their citizens for more accountable government, has led many to link the struggle for democracy with a desire for capitalism. Some writers have gone so far as to portray the demise of ‘actually existing socialism’ as the culmination of ‘a universal human evolution in the direction of free societies’ grounded in ‘the empirically undeniable correlation between advancing industrialisation and liberal democracy’.
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Próchniak, Mariusz. "Modele kapitalizmu w krajach Europy Środkowo-Wschodniej w porównaniu z Europą Zachodnią w obszarze konkurencji na rynku produktów." Przegląd Wschodnioeuropejski 13, no. 2 (January 8, 2023): 51–66. http://dx.doi.org/10.31648/pw.8448.
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The article compares 11 Central and Eastern European (CEE) countries, which are new EU members, with 7 countries of Western Europe representing 4 Western European models of capitalism (continental, Mediterranean, Nordic, and Anglo-Saxon) in the area of product market competition. The analysis covers the 2010-2020 period. One of the goals of the study is to determine the degree of similarity of the institutional architecture of the CEE countries in relation to the reference models in the last year before the coronavirus pandemic outbreak and to analyze the changes in these results over the last decade. Particular emphasis was placed on changes in the degree of similarity between two snapshots: 2010 and 2019. The study includes 26 variables characterizing the product market competition. These variables describe both the institutional architecture of the product market competition (the so-called input variables) and the effects of a given institutional order (output variables). The comparison of countries is based on our own concept of the similarity coefficient. One of the elements of novelty and originality is the analysis of robustness in terms of various Western European countries, which are a reference point, as well as alternative methods of calculating the similarity coefficient. The study shows that the results are robust to the assumptions made. The CEE countries are closest to the Mediterranean model of capitalism (both Spain and Italy). The Nordic model ranks last. The classification of Western European models of capitalism in terms of institutional proximity to the CEE countries is also robust to the exact method of calculating the similarity coefficient.
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Ibsen, Malte Frøslee. "The Populist Conjuncture: Legitimation Crisis in the Age of Globalized Capitalism." Political Studies 67, no. 3 (November 7, 2018): 795–811. http://dx.doi.org/10.1177/0032321718810311.
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This article argues that the theory of legitimation crisis developed by Offe and Habermas offers an instructive theoretical framework for explaining the current surge of populism across the West. The article argues that this populist resurgence is indicative of a profound legitimation crisis of the Western welfare state, which ultimately derives from its inability to control a globalized economic system. The article argues that two prominent rival accounts of the populist resurgence both suffer from their inattention to the specific ideational content of populism, as a reaction to a form of elite political rule experienced as illegitimate. By contrast, the advantage of the theory of legitimation crisis is that it is able to directly account for the structural conditions of the present legitimation crisis. Finally, the article offers an integrative account of why populism tends to focus on immigration in Northern Europe and on economic issues in Southern Europe.
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Gilardi, Fabrizio. "The Institutional Foundations of Regulatory Capitalism: The Diffusion of Independent Regulatory Agencies in Western Europe." ANNALS of the American Academy of Political and Social Science 598, no. 1 (March 2005): 84–101. http://dx.doi.org/10.1177/0002716204271833.
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Atanov, Andrey. "Historical Context of the Conceptual Foundations of Economic Systems (In the Context of «Capital» by Karl Marx)." Journal of Economic History and History of Economics 19, no. 2 (June 30, 2018): 167–81. http://dx.doi.org/10.17150/2308-2588.2018.19(2).167-181.
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The article considers the conceptual constructions of K. Marx brought in accordance with the conceptual system of G. Hegel. The author stresses that such concepts such as value, commodity, wealth, etc. are understood quite differently in Russia and Western Europe. Therefore, the semantic mismatch between these concepts in the context of civilizational approach expressed in the system of logical analysis occurs. As a result, the description of the traditional for Russia structures of economy, social relations, and historical development began to distort. This description is based on the methodology of Marx, bringing the real structures in accordance with his theory, but further the author states that the concepts of Marx are general, but not universal (at the outside, they are based on the theme of community - but the basis of community is a different system of values). In the course of the study, it was found that there is no object of Marxist methodology in Russian capitalism, as well as in history and social relations, since there were no equivalent to Marxism structures in the world of the real things of Russia. This kind of structures belongs to the capitalist mode of production in Western Europe. In Russia, they were placed in the structure of ideology, replacing the real object with the imaginary one. Thus, in this case, there is the category of formation, but it only generates an effect - existential and ontological foundations exist as real and true in a completely different social system.
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Field, Alexander J., and William N. Parker. "Europe, America, and the Wider World: Essays on the Economic History of Western Capitalism. I: Europe and the World Economy." Journal of Interdisciplinary History 16, no. 3 (1986): 506. http://dx.doi.org/10.2307/204505.
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GRAY, KEVIN W. "Saving 1968: Thinking with Habermas against Habermas." PhaenEx 4, no. 2 (January 3, 2010): 26. http://dx.doi.org/10.22329/p.v4i2.2918.
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Taking Habermas’s Die nachholende Revolution as a foil, I contend that in his discussions of 1989, Habermas has misunderstood the nature of the anti-Communist revolutions. Comparing them to his writings on the public sphere and the student protest movements in Germany, I argue that the revolutions do not represent the triumph of capitalism anymore than they represent the triumph of Western democracy. Calling the events catch-up revolutions is to frame the events as the expansion of modernity and nothing more. Rather, the revolutions show that the revolutionaries in Eastern Europe were grappling with the same problem, namely the control of technical subsystems, that the students and revolutionaries of 1968 were. Viewed in the light of Habermas’s writings from the 1960s, we end up better understanding the twin extremes of capitalism and bureaucratic-totalitarianism.
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Ivanitsky, V. P. "The Role of Financial and Economic Architecture in the Convergence System of the New Industrialization of Russia." Zhurnal Economicheskoj Teorii 17, no. 4 (2020): 789–98. http://dx.doi.org/10.31063/2073-6517/2020.17-4.4.
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The term ‘convergence’, which stands here for the process of lifestyle, shows that there are forces that provide assurance of ingoing development of society. There are other forces which lead to losses of well-being of people. The research is devoted to a rather complex area of economic and social relations in the sphere of human interaction. Financial architecture is both the degree of convergence and the structure of the global financial architecture, which is the basis of any country, capitalist or socialist, as well as other socio-economic formations. At the turn of the 20th and 21st centuries, the capitalism of North America and Western Europe countries gets the upper hand because of the socialism breakdown. It was the Soviet Union that shouldered the burden of building a socialist system through trial and error. The research identifies five convergence indicators that should influence the innovation in socio-economic and technological spheres: research, education, health care, environmental management and population growth.