UNIVERSITY OF DEBRECEN DOCTORAL SCHOOL OF ECONOMICS PHD PROGRAM 'C OMPETITIVENESS , GLOBALIZATION AND REGIONALISM ' DIVERGENT DYNAMICS OF TRANSFORMATION : THE ROLE OF THE EUROPEAN UNION PhD THESIS Fruzsina Márta SIGÉR Supervisor: László CSABA Debrecen September 2009 A doktori értekezés betétlapja DIVERGENT DYNAMICS OF TRANSFORMATION : THE ROLE OF THE EUROPEAN UNION Értekezés a doktori (Ph.D.) fokozat megszerzése érdekében Közgazdaságtudományok tudományágban Írta: Sigér Fruzsina Márta okleveles közgazdász Készült a Debreceni Egyetem Közgazdaságtudományok doktori iskolája (Versenyképesség, globalizáció és regionalitás programja) keretében Témavezet ı: Dr. Csaba László A doktori szigorlati bizottság: elnök: Dr. Makó Csaba tagok: Dr. Julius Horvath Dr. Szanyi Miklós Dr. Erdey László A doktori szigorlat id ıpontja: 2009. február 13. Az értekezés bírálói: Dr. Benczes István Dr. Julius Horvath A bírálóbizottság: elnök: ………………………….. tagok: ………………………….. ………………………….. ………………………….. ………………………….. Az értekezés védésének id ıpontja: 200… . ……………… … . 2 Table of content Table of content ............................................................................................................................ 3 List of Figures ............................................................................................................................... 5 List of Tables ................................................................................................................................ 6 List of textboxes............................................................................................................................ 7 Acknowledgment...................................................................................................................... 8 Motivation of the research........................................................................................................ 9 I. Introduction.................................................................................................................... 10 1 Research question .......................................................................................................... 10 2 Method........................................................................................................................... 11 3 The initial hypotheses and puzzles................................................................................. 13 3.1 The puzzle of Croatia.............................................................................................. 14 3.2 Why compare with Slovakia?................................................................................. 15 II. Theoretical and conceptional framework....................................................................... 18 1 Europeanization: the theory ........................................................................................... 18 1.1 Internal vs. external Europeanization...................................................................... 21 1.2 Mechanisms of Europeanization............................................................................. 24 1.3 EU as an anchor ...................................................................................................... 27 1.4 Adaptation capacity ................................................................................................ 29 2 Five aspects of Europeanization..................................................................................... 31 2.1 Exporting democracy.............................................................................................. 31 2.2 Market economy ..................................................................................................... 34 2.3 Acquis communautaire ........................................................................................... 37 2.4 Common foreign and security policy...................................................................... 40 2.5 Europeanization in narrow sense: from Europe to Europe?.................................... 42 3 Costs and benefits of Europeanization........................................................................... 44 4 External factors – the comparison of the association agreements.................................. 46 4.1 The two agreements................................................................................................ 47 4.1.1 Industrial products........................................................................................ 47 4.1.2 Agricultural concessions............................................................................... 48 4.1.3 Protection provisions.................................................................................... 48 4.1.4 Promotion of economic development........................................................... 49 4.1.5 Admission of labour force............................................................................ 49 4.1.6 Institutions.................................................................................................... 50 4.1.7 Evolution possibilities of the agreement....................................................... 50 4.1.8 Conclusion.................................................................................................... 51 5 Preliminary conclusions and hypotheses ....................................................................... 52 5.1 External and internal factors ................................................................................... 52 5.2 The size of the misfit............................................................................................... 53 5.3 EU membership vs. Europeanization...................................................................... 54 5.4 Transformation and Europeanization...................................................................... 54 5.5 Testing the hypotheses............................................................................................ 55 III. Transformation and European integration in Croatia..................................................... 56 1 The initial conditions: Yugoslavia................................................................................. 56 1.1 The dissolution – in practice................................................................................... 61 1.2 The dissolution – in theory...................................................................................... 63 2 The „nationalist” period of economic transformation and European integration – the Tudjman regime...................................................................................................................... 67 2.1 Building market economy....................................................................................... 67 2.1.1 Macroeconomic development during the “nationalist” period..................... 69 2.1.2 Structural transformation during the Tudjman era ....................................... 76 2.2 The common foreign and security policy in action: the Yugoslav war and the role of the EC/EU................................................................................................................. 81 3 2.2.1 ICTY............................................................................................................. 85 2.3 Pressure to build democracy and the strengthening of HDZ’s power.....................86 2.4 Conditionality towards “the rights and obligations that EU countries share”........88 2.5 National identity vs. European identity: Europe but not European Union – unwilling or unable?.............................................................................................................93 2.6 Conclusion...............................................................................................................96 3 The “Europeanist” phase of economic transformation and European integration ....... 100 3.1 Building democracy II...........................................................................................100 3.1.1 The trial of the opposition: 2000-2003 ....................................................... 100 3.1.2 HDZ reloaded .............................................................................................102 3.2 Legal conditionality towards the “Europeanist” governments..............................103 3.3 European identity ..................................................................................................112 3.4 The common foreign and security policy after the Yugoslav war ........................113 3.4.1 ICTY........................................................................................................... 113 3.5 Building market economy.....................................................................................115 3.5.1 Macroeconomic performance in the 2000’................................................. 115 3.5.2 Structural changes since 2000..................................................................... 122 3.5.3 Why stabilization in Croatia has not brought economic growth?............... 128 3.6 Conclusion.............................................................................................................134 IV. Transformation and European integration in Slovakia................................................. 137 1 The initial conditions: Czechoslovakia ........................................................................137 1.1 The dissolution......................................................................................................144