Local-level policies for small firm sector development in Russia and Hungary :
[Thesis]
Machold, Silke
a comparative analysis
University of Wolverhampton
1999
Ph.D.
University of Wolverhampton
1999
The fall of the Berlin Wall in 1989 heralded the beginning of systemic transformation from centrally-planned to market-type economies in Eastern Europe. From the outset, reforms were shaped by a neo-liberal policy agenda which was grounded in the belief that private ownership and markets would bring about resource reallocation and instigate growth. However, the experience after a decade of transition suggests that this agenda has been inadequate in addressing the complex social, economic, political and structural problems of the region. The progress that has been made in attaining macroeconomic stability continues to be threatened by the lack of deep restructuring at the microlevel. In this context, the development of new small firms assumes critical importance as they are viewed as key agents in the process of structural change in the transition economies. However, the development of small firms continues to be stymied by a number of internal and external factors. This thesis seeks to contribute to the growing literature on small firm development in Eastern Europe by taking a closer look at policy issues. Given the lack of domestic experience in the promotion of small firms, policy-makers in the region are looking to adopt 'best practice' from elsewhere. The question that emerges is whether these imported policies are appropriate in the context of transition economies. The research seeks to fill some of the gaps in the literature by exploring the theoretical and policy implications of the relevance of Western small firm policy experience in the context of two very diverse transition economies - Hungary and the Russian Federation. The research focuses especially on small firm policies developed at the local level in Russia and Hungary and aims to establish the extent to which emerging policies have been taken 'off the shelf. On the basis of regional case studies, the appropriateness of such policies will be explored.