Eastern Europe developed in 30 years, new serious challenges
International report, 'wealthier and healthier' than in 1989
22 November, 16:48WIIW also pointed out "increased authoritarianism" and the decline in the quality, independence and/or capacity of institutions." "Although when it comes to threats to democracy, Hungary, Poland, Turkey and Russia tend to get the most attention, in reality these countries are not exceptional," WIIW wrote, underlining that a "clear deterioration" of the standards of the electoral democracy were recorded in particular in Hungary, Turkey, Ukraine, Serbia, Hungary, Poland and Croatia between 2007 and 2017. "Negative political trends in many parts of CESEE are already having important implications for institutional quality, capacity and independence, and this in turn could be a problem for economic growth in the future as it affects the climate for investment," the Vienna-based institute stressed. According to the research, the rise in authoritarianism and the decline of democratic institutions have different causes.
Among them, the fact that "political liberalism in general never put down very deep roots" in much of the region. Moreover, countries have less incentive to stick to reforms once they join the European Union and "disappointment with post-1989 economic developments, including rising inequality, give populists a valuable tool to use." In the last 30 years, inequality has risen in particular in Russia, Macedonia, Latvia, Lithuania, Bulgaria, Estonia, Romania, the Czech Republic and Slovakia.
However, "there are several reasons for optimism about the future," WIIW concluded. Among them, "there is a reasonable chance that labour shortages in the region will drive productivity- enhancing improvements, leading to per capita GDP increases, further wage convergence with Western Europe, and better living standards." Moreover, "large-scale protest movements against the authoritarian turn and state capture are visible in parts of the region and, finally, "the new digital economy represents a decent opportunity" for the region. (ANSA).