The recent accession of the former communist countries of Central
and Eastern Europe to the European Union significantly changed many
of its social and economic characteristics. For example, a
situation was created where income differences between regions in
the EU are on a par with those between Britain and some African
countries. Regional differences in productivity and employment
levels within the EU are even more stark than income differences.
This monograph examines the policies that should be used to address
the poor economic performance of New Europe's old industrial and
agricultural regions. The author finds traditional regional policy
wanting, but feels there might be a role for the 'new regionalism'
that is focused on trying to boost the productivity of peripheral
regions. However, using Poland as a case study, he is able to show
that, if new-style regional policies are introduced without
policies aimed at liberalisation, lower taxes and reduced
employment protection, then nothing of substance will be achieved.
This analysis has profound implications for the EU more widely. If
there is to be economic liberalisation within the EU then there
probably has to be political reform too. This study is essential
reading for anybody interested in the future of the EU and the role
of regional policy in economic development.
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