At the Gleneagles summit in July 2005, the heads of state from the G-8 countries - the United States, Canada, France, Germany, Italy, Japan, Russia and the United Kingdom - called on the International Monetary Fund (IMF), the World Bank and the African Development Bank to cancel 100 percent of their debt claims on the world's poorest countries. The world's richest countries have agreed in principle to forgive roughly $55 billion dollars owed by the world's poorest nations. This article considers the wisdom of the proposal for debt forgiveness, from the standpoint of stimulating economic growth in highly indebted countries. In the 1980s, debt relief under the "Brady Plan" helped to restore investment and growth in a number of middle-income developing countries. However, the debt relief plan for the Heavily Indebted Poor Countries (HIPC) launched by the World Bank and the International Monetary Fund in 1996 has had little impact on either investment or growth in the recipient countries. We will explore the key differences between the countries targeted by these two debt relief schemes and argue that the Gleneagles proposal for debt relief is, at best, likely to have little effect at all. Debt relief is unlikely to help the world's poorest countries because, unlike the middle-income Brady countries, their main economic difficulty is not debt overhang, but an absence of functional economic institutions that provide the foundation for profitable investment and growth. We will show that debt relief may be more valuable for Brady-like middle-income countries than for low-income ones because of how it leverages the private sector.

Beginning in 1993, left or communist successor parties have achieved electoral success in several postcommunist countries as critics of neo-liberal reform. They have focused their electoral appeals on the social costs of reform, promising greater public welfare and moderation of economic policies. The present volume examines the impact of these parties on social policy in Poland, Hungary, Russia, Eastern Germany, and the Czech Republic, asking: Do left parties commit greater resources to social policy, or are they constrained by finances, international pressures, or their own conversion to market ideology? Do they seek to promote a social-democratic model of the welfare state, or look to models that assign the state a more limited role? Are they acting opportunistically in appealing to popular grievances or effectively building a consensus around a policy agenda? Answers to these questions are used to address a broader theoretical concern: What does being "left" mean in the postcommunist context?

The book is intended for a wide audience and has been written in a style which is readily accessible to people from many different disciplines.

Cappelen Akademisk Forlag (a leading Norwegian Publisher) are pleased to announce the publication of a new and highly challenging book on the rise of New Public Financial Management (NPFM) reforms. Edited by Olov Olson, James Guthrie and Christopher Humphrey, the book is the outcome of a unique two year collaborative project involving 24 senior accounting academics from eleven different countries, including Australia, France, Germany, Japan, New Zealand, Norway, Spain, Sweden, Switzerland, United Kingdom and United States of America. The book is intended for a wide audience and has been written in a style which is readily accessible to people from many different disciplines. As John Meyer, Professor of Sociology at Stanford University, observes in his foreword to the book: "This book is about the rise and international impact of a social movement trying to reform public management around the world along rational and rationalistic lines. The roots of the movement are in professional accounting, especially in the private sector, and has gained considerable force in the last two decades, and has had widespread effects on the ways public organizations are perceived, on policies governing them, and sometimes on organizational practices.

As the debate on NATO expansion moves to the more public and open setting of U.S. Senate hearings this month, we will begin to hear the true motivations behind those for and against extending the alliance to the Czech Republic, Hungary and Poland. From the right, senators will declare that they favor enlargement of the North Atlantic Treaty Organization as a hedge against a possible Russian threat to Europe in the future. From the left, senators will argue that they oppose NATO expansion because the move eastward will help nationalist forces within Russia and thereby damage U.S.-Russian relations.

Full article available with subscription.

Since Brazil and West Germany surprised the world by announcing that they had reached the nuclear "deal of the century" in 1975, many national and international observers have feared that Brazil sought to develop atomic weapons. Brazilian rejection of the Nuclear Non-Proliferation and Tlatelolco treaties, insistence on its legal right to develop so-called peaceful nuclear explosives (PNEs), aspirations to great power status, authoritarian military government, and tacit nuclear rivalry with Argentina aroused concern that this ambitious program of reactor construction and technology transfer would mask an effort to reach the bomb.

Although difficult financial circumstances derailed this program in the late 1970s, by the early 1980s press reports began to emerge indicating that a secretive "parallel" nuclear program under military direction was underway. Transition to democratic rule in 1985 failed to clarify the nature and objectives of this second effort, and provocative statements by senior military officers intensified concerns. This second effort persevered in the face of the severe economic conditions that made the 1980s a "lost decade" for Latin American countries, increasing international stress on nonproliferation, and protests from domestic anti-nuclear and environmental groups, as well as a 1990 investigation by the national congress.

By 1991, however, Brazil had formally renounced PNEs, agreed to establish bilateral safeguards with Argentina and to accept International Atomic Energy Agency (IAEA) inspection of formerly secret nuclear facilities, and committed to ratifying the Treaty of Tlatelolco. This marked the apparent reversal of a long trajectory toward the proliferation threshold, and thus assuaged apprehension within and outside the country. Yet military involvement in nuclear technological development continued essentially unaltered, and Brazil now enjoys the distinction of being one of the few states with the indigenous capacity to produce fissile material necessary to construct atomic weapons.

This paper seeks to answer two questions: Given limited resources and domestic and foreign opposition, how did the Brazilian military succeed in developing this capacity? Given their determined effort and enduring role in nuclear development, why did the armed forces stop short of the bomb?

This study answers these two questions through investigation of domestic political processes, which involve the formation and maintenance of programmatic coalitions that marshal human, material, and political resources for technological development. Such coalitions encounter constraints which include competition for scarce human and financial capital, international technological denial, and domestic and international opposition. Such programs must be either effectively insulated from domestic challenges, or politically defended and normatively legitimated in spite of them.

For two years, opponents of NATO expansion have warned that inviting former Warsaw Pact countries into the alliance would bolster Russia's nationalist and Communist opposition forces. In Moscow, however, the extension of invitations to the Czech Republic, Hungary and Poland to join NATO came and went this month without producing any visible reaction from Russia's opposition.

Full article available with purchase.

How will civil-military relations affect efforts to consolidate new democracies in developing and postcommunist countries? How should democratic governments go about establishing civilian control of the armed forces? This volume brings together ten distinguished authorities from around the world to examine these questions as they relate to Latin America, Asia, Africa, Eastern Europe, and the former Soviet Union.

Executive Summary

This paper considers the emerging structure of the international security system after the end of the Cold War. It describes the changes that have taken place in world politics with the end of the bipolar confrontation, and the new threats and challenges that face the international community in the post-Cold War era. It discusses the implications that this new international system has for European security and, in particular, for the security of one of the newly independent states-Ukraine. The role of international organizations, in particular the United Nations, in countering new threats to global security is examined, and a number of recommendations proposed for reforming the UN to meet these challenges more effectively.

The collapse of the Warsaw Pact has left Central and Eastern Europe in a security vacuum. Regional organizations such as the Organization for Security and Cooperation in Europe (OSCE), however important, are unlikely to fill this vacuum and become an effective security structure for the new Europe. The further expansion of NATO may well have an adverse effect on the domestic political process in Russia. As a temporary measure, a "neutral area" could be created for the countries of Central and Eastern Europe, the security of which could be guaranteed by NATO and Russia.

As for Ukraine, it finds itself at the crossroads of regional politics, with influential domestic groups of both pro-Western and pro-Russian orientation. Its membership in NATO in the near future is neither likely nor desirable, and may have a negative effect on European security. However, the security of Ukraine, and in particular its relationship with Russia, is a very important factor for European stability and for relations between Russia and the West.

In this new global situation, the UN could become an effective center for global security. To adequately perform this function, the organization needs profound reform. This reform could include three main stages: strengthening the UN's role as a forum of discussion, creating a center for diplomatic coordination and conflict prevention, and creating a mechanism for implementing the UN's decisions. In the distant future, the UN may assume responsibility for administering the nuclear weapons remaining after global nuclear disarmament.

Other steps in the reform process may require altering the UN Charter, including expanding the Security Council to 20-21 members, with new members such as Germany and Japan (among other new regional leaders) taking the permanent seats; and revising the right of veto of the permanent five and possibly replacing it with a consensus or a majority vote mechanism.

The UN peacekeeping operation is another domain that requires close examination and restructuring. The organization should be primarily concerned with conflict prevention. Peace enforcement operations should take place only by decision of the Security Council, and member states should provide more support, financial and other, and be encouraged to contribute troops.

In the area of economy and development, the UN should take the leading role through creation of a UN Development Council. The United Nations Conference on Trade and Development (UNCTAD) could perform the role of a coordinating body for other international institutions, such as the World Trade Organization and the World Bank.

In this paper, we investigate the extent and likely impact of employee ownership on the transition process under way in Central and Eastern Europe. Despite the fact that political realities in most of the region imply that sales or transfers to employees often represent a significant privatization path, much of the literature on economic reform has been critical of the potential role of employee ownership in enterprise restructuring (for example, Blanchard et al., 1991), although the ownership form also has a few proponents (for instance, Ellerman, 1990). The relative merits and differences in behavior of employee-owned firms compared with "conventional" capitalist firms in market economies have received considerable attention in the Western literature (for example, Bonin and Putterman, 1987; Bonin, Jones, and Putterman, 1992; Hansmann, 1990; Pencavel and Craig, 1994). What is not yet well understood is the particular strengths and deficiencies brought by employee ownership to the process of transition itself. Our attempts to answer this question provide the conceptual framework in this paper against which actual privatization programs in various countries are evaluated and against which hypotheses about relative performance may derived and tested.

Five years after the dramatic fall of communism in Eastern Europe, there is an opportunity to evaluate the efficacy of different forms of liberalization.

The most obvious and controversial difference between reform strategies is in the pace of transition. Previous theories of development have focused on the slow growth of Third World countries into modern economies. Some experts have ascribed current failures in Eastern Europe to the instantaneous liberalization of economies and the forceful application of tight monetary policies.

But this theory is contradicted by the fact that the most successful Eastern European countries, Poland and the Czech Republic, are those that initiated the most dramatic and rapid reforms. The authors of Economic Transition show how educate, relatively modern societies can make major changes in political and economic institutions almost overnight.

Economic Transition in Eastern Europe and Russia is a work of substantial academic merit that is also accessible to the interested layperson. Thirteen essays by acknowledged economic experts explore the rapid changes in the transition economies of Eastern Europe, with discussions on political and economic freedom, monetary control and privatization, labor markets and social safety nets, and taxation and crime.