The role of indigenous institutions in the economic transformation of eastern Europe : the hungarian chamber system - one step forward or two steps back?
By: INGLEBY, Susan J
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Employers' associations, and their influence on the economic transformation in Eastern Europe, have been largely ignored. In spring 1994, the Hungarian Parliament passed a law on Chambers which will render three new Chambers the supreme regulating source for all entrepreneurs' licensing, training and economic actions; membership will be compulsory. Drafters of the law claim the Austrian/German system as a model, but it is more reminiscent of the socialist structure of authoritarian/state corporatism. What prompted this development in a society with long exposure to market forces? As old normative patterns disintegrate, associations motivated by financial survival compete with the state for the power to dictate new norms. Co-evolutionary theory demonstrates the complex interaction of actors at the macro, organizational and micro levels of this competition and how it is translated into policy.
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