Freedom House study focuses on political and economic reform (06/22/97)

Freedom House study focuses on political and economic reform

NEW YORK - A major new Freedom House study shows that eight years after the fall of the Berlin Wall, democracy is vibrant in the formerly communist countries of Central and Eastern Europe, particularly in the northern tier. At the same time, the study indicates that political and economic reform in the new independent states of the former Soviet Union has been slow, inconsistent and, in some cases, non-existent. Russia, Ukraine and Moldova have made the most progress among the ex-Soviet republics.

The Freedom House survey, funded by the United States Agency for International Development, is titled "Nations in Transit 1997." This 400-page report, edited by Adrian Karatnycky, Alexander Motyl and Boris Shor, is the most comprehensive examination of the state of political and economic reform available in English. It provides in-depth data on more than 40 themes related to political and economic liberalization in 25 formerly communist countries. It examines elections, civil society, the media, rule of law, public administration, privatization and economic reform. The study also illustrates the direct relationship between economic reform and economic performance. This is the second year this survey has been conducted.

"Democratic market reform has established deep roots in many ex-communist countries. But new forms of tyranny have also consolidated, particularly in Central Asia and Belarus," noted Freedom House President Adrian Karatnycky.

Among the key findings are:

There is a direct connection between political and economic liberalization. In all cases, countries making the greatest progress toward democratization have made the greatest strides in economic liberalization; countries making the least progress in the political sphere - Turkmenistan, Uzbekistan, Tajikistan and Belarus - as a rule have done poorly in the economic sphere.
The differences between Central and Eastern Europe and the former Soviet Union are striking. There are no established democracies with market economies in the former Soviet Union, and there are no autocracies with statist economies in Central and Eastern Europe.

The emerging patterns reflect, in part, the effect of the Soviet totalitarian empire. "There is a tendency to underestimate the legacies of totalitarianism and imperial rule and the long road that must be traveled along the path of reform," said Mr. Karatnycky. He adds that many of the countries most tightly controlled during the Cold War were the slowest to liberalize.

The countries that score the highest are consolidated democracies with market economies. These countries respect human rights, broad press freedoms and the rule of law, have created the basis for a vibrant civil society and have consolidated market economies. Those scoring in this top category are Hungary, the Czech Republic, Poland, Slovenia, and the Baltic nations of Estonia, Latvia and Lithuania. These countries, not surprisingly (especially the first three which are the highest rated), are the top candidates for inclusion in the European Union. The non-Baltic countries in this group are NATO candidates.

The most repressive countries have statist economies and autocratic political systems. In these countries fundamental human rights are routinely and systematically denied, independent institutions are repressed, and statist economies are firmly entrenched. Countries in this category are Belarus and three Central Asian countries: Tajikistan, Uzbekistan and Turkmenistan - all former Soviet republics.

The third group of countries, neither the best nor the worst, is characterized by developmental instability. Some countries in this intermediate category register improvements, others show marked declines. Such countries stand to benefit the most from Western engagement and assistance. Countries in this group are Russia, Moldova, Slovakia, Bulgaria, Romania, Ukraine, Macedonia, Croatia, Albania, Armenia, Kyrgyzstan, Georgia, Kazakstan and Azerbaijan. Within this group, Russia rated the highest in political and economic liberalization.

Mr. Karatnycky said that this report confirms the link between economic reform and economic growth. Six of the seven highest ranked countries experienced economic growth in recent years. Only one of six of the lowest ranked countries for economic reform, Bulgaria, registered (barely) any economic growth. Countries shifting to a free market economy experienced a notable reversal of their post-socialist decline, and eventually registered varying rates of growth.

Since the first "Nations in Transit" was issued 18 months ago, three countries, Albania, Armenia and Slovakia, have registered a significant decline in political freedom. Major gains were recorded by Bulgaria, Georgia, Romania and Russia. Three countries, Bulgaria, Belarus and Macedonia, moved toward an abandonment of economic liberalization, while Moldova and Ukraine showed significant improvements in economic reform.

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