In Pursuit of Liberalism Epstein, Rachel A. Published by Johns Hopkins University Press Epstein, Rachel A. In Pursuit of Liberalism: International Institutions in Postcommunist Europe. Johns Hopkins University Press, 2008. Project MUSE. doi:10.1353/book.3346. https://muse.jhu.edu/. For additional information about this book https://muse.jhu.edu/book/3346 [ Access provided at 30 Sep 2021 14:57 GMT with no institutional affiliation ] This work is licensed under a Creative Commons Attribution 4.0 International License. ........................................................................................................................................................................................................................................................................................... In Pursuit of Liberalism . ................................................................................................................................ ........................................................................................................................................................... This page intentionally left blank ........................................................................................................................................................................................................................................................................................... In Pursuit of Liberalism . International Institutions in Postcommunist Europe . rachel a. epstein . The Johns Hopkins University Press . Baltimore . ................................................................................................................................ ........................................................................................................................................................... ∫ 2008 The Johns Hopkins University Press All rights reserved. Published 2008 Printed in the United States of America on acid-free paper 246897531 The Johns Hopkins University Press 2715 North Charles Street Baltimore, Maryland 21218-4363 www.press.jhu.edu Library of Congress Cataloging-in-Publication Data Epstein, Rachel A., 1970– In pursuit of liberalism : international institutions in postcommunist Europe / Rachel A. Epstein. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-8018-8977-6 (hardcover : alk. paper) ISBN-10: 0-8018-8977-4 (hardcover : alk. paper) 1. Europe, Eastern—Politics and government—1989– 2. Europe, Eastern—Economic policy—1989– 3. Liberalism—Europe, Eastern. 4. International agencies—Europe, Eastern. I. Title. JN96.A58E67 2008 320.947—dc22 2007052865 A catalog record for this book is available from the British Library. Special discounts are available for bulk purchases of this book. For more information, please contact Special Sales at 410-516-6936 or [email protected]. The Johns Hopkins University Press uses environmentally friendly book materials, including recycled text paper that is composed of at least 30 percent post-consumer waste, whenever possible. All of our book papers are acid-free, and our jackets and covers are printed on paper with recycled content. To my parents This page intentionally left blank ........................................................................................................................................................................................................................................................................................... Contents . ................................................................................................................................ ........................................................................................................................................................... List of Tables ix List of Acronyms and Abbreviations xi Acknowledgments xiii Introduction 1 1 Cultivating Consensus: International Institutions and a Liberal Worldview 7 2 Institutionalizing Central Bank Independence 30 3 Internationalizing Bank Ownership 69 4 Democratizing Civil-Military Relations 107 5 Denationalizing Defense Planning and Foreign Policy 149 Conclusion 192 Appendix: Interviews 215 Notes 219 References 241 Index 257 This page intentionally left blank ........................................................................................................................................................................................................................................................................................... Tables . ................................................................................................................................ ........................................................................................................................................................... 2.1. Central Bank Independence: Postcommunist and OECD States Compared 36 2.2. Central Bank Independence in Selected Postcommunist States: Measures 37 3.1. Foreign and State Ownership in Selected Banking Sectors, 2002 72 3.2. Foreign and State Ownership in Postcommunist Banking Sectors, 2002 76 3.3. Major Increases in Foreign Ownership in Banking: Selected States, 1998–1999 to 2002 100 4.1. Opinion Data on NATO Membership, 1995 and 1997 119 4.2. Public Confidence in the Armed Forces: Selected Postcommunist States 120 4.3. Ukrainian Public Opinion Data on NATO, 1998 127 4.4. Ukrainian Public Opinion Data on NATO Membership, 2000 127 5.1. Troop Deployments for Operation Iraqi Freedom (OIF) and Stabilization 152 5.2. Military Expenditure as Percentage of GDP 165 5.3. Troop Deployments by Selected Postcommunist States, 2006 182 5.4. Troop Levels: Selected Postcommunist States, 1989–1990 to 2004–2005 185 This page intentionally left blank ........................................................................................................................................................................................................................................................................................... Acronyms and Abbreviations . ................................................................................................................................ ........................................................................................................................................................... AWS Solidarity Electoral Action (Poland) BCR Commercial Bank of Romania BPH Bank Przemys™owo-Handlowy of Krakow (Poland) BRD Romanian Bank for Development CBI central bank independence CDR Democratic Convention of Romania CEE central and eastern Europe CIS Commonwealth of Independent States CPU Communist Party of Ukraine CRS Congressional Research Service EBRD European Bank for Reconstruction and Development EC European Commission ECB European Central Bank EMU European Monetary Union ESCB European System of Central Banks FDSN Democratic National Salvation Front (Romania) FIDESZ Federation of Young Democrats (Hungary, from 1988) Fidesz-MPP Fidesz–Hungarian Civic Party (Hungary, from 1995) FSN National Salvation Front (Romania) GDP gross domestic product IFC International Finance Corporation IFI international financial institution IFOR Implementation Force (NATO-led international force in Kosovo) IMF International Monetary Fund MDF Hungarian Democratic Forum MHB Hungarian Credit Bank MKB Hungarian Foreign Trade Bank MNB National Bank of Hungary xii acronyms and abbreviations MoD Ministry of Defense MoF Ministry of Finance MSzMP Hungarian Socialist Workers’ Party MSzP Hungarian Socialist Party NATO North Atlantic Treaty Organization NBP National Bank of Poland NBR National Bank of Romania NBU National Bank of Ukraine NGO nongovernmental organization OECD Organisation for Economic Co-operation and Development OT Obronna Terytorialna (Poland) OTP National Savings and Commercial Bank Limited (Hungary) PDSR Party of Social Democracy of Romania PfP Partnership for Peace PiS Law and Justice Party (Poland) PRM Greater Romania Party PSD Social Democratic Party (Romania) PSL Polish Peasant Party PSM Socialist Party of Labor (Romania) PUNR Romanian National Unity Party PUWP Polish United Workers’ Party SFOR Stabilization Force (NATO-led mission in Bosnia) SLD Democratic Left Alliance (Poland) SzDSz Alliance of Free Democrats (Hungary) UDMR Democratic Alliance of Hungarians in Romanian UN United Nations USAID United States Agency for International Development USD Social Democratic Union (Romania) UW Freedom Union (Poland) ........................................................................................................................................................................................................................................................................................... Acknowledgments . ................................................................................................................................ ........................................................................................................................................................... The topics in this book have commanded my interest for a very long time. And, as every author knows, turning interests into coherent arguments requires the help of many people and institutions along the way. I would first like to thank the mem- bers of my committee at Cornell University, whose counsel, they may be surprised to learn, I still think of and use every day—in the classroom, advising students, and conducting my research. Peter