Structural Reforms without Prejudices

by Boeri, Tito; Castanheira, Micael; Faini, Riccardo; Galasso, Vincenzo

• ISBN13: 9780199203628
• ISBN10: 0199203628
• Format: Hardcover
• Copyright: 2006-08-10
• Publisher: Oxford University Press

Summary

What makes economic reforms a success or a failure? Why do we witness ambivalent attitudes to reforms? Can governments implement reforms differently, without inflicting prejudice to large fringes of the population? This book explores these issues by comparing a number of reforms across a large set of countries and sectors. It aims to help readers understand the process of reform and the origins of success, and to help reformers discover new ways to implement reforms to benefit the most people.

Author Biography

Tito Boeri received his Ph.D. in economics from New York University and is currently Professor of Economics at Bocconi University and is Director of the Fondazione Rodolfo Debenedetti. He has also acted as consultant to the European Commission, International Monetary Fund, the ILO, the World Bank and the Italian Government. Micael Castanheira received his Ph.D. in economics from the Free University of Brussels and is currently a research fellow of the Belgian National Research Foundation (FNRS), and Professor of Economics at the Free University of Brussels. Riccardo Faini is Professor of Political Economy at the University of Rome Tor Vergata. He was previously Director General at the Italian Treasury and has held the post of Executive Director at the International Monetary Fund. Vincenzo Galasso obtained his Ph.D. in economics from the University of California at Los Angeles and is currently Associate Professor of Economics at Bocconi University, Milan, and Research Fellow of IGIER.

Table of Contents

List of Figures	xi
List of Tables	xiii
List of Contributors	xv
Introduction	1	(14)
Part I. Contrasting Europe's Decline: Do Product Market Reforms Help?	15	(126)
Riccardo Faini
Jonathan Haskel
Giorgio Barba Navaretti
Carlo Scarpa
Christian Wey
Introduction	17	(4)
Competition and Economic Performance: A Brief Review of the Literature	21	(3)
The Maze of Services Regulation	24	(65)
A brief overview	24	(1)
Energy	25	(16)
Electricity	27	(1)
Pre-privatization structural issues	27	(1)
The EU reform agenda	28	(1)
Reform in the three countries	28	(1)
Privatization and structural change	28	(3)
Regulation and deregulation	31	(1)
Economic outcomes	31	(3)
Evaluation	34	(1)
Natural Gas	34	(1)
Pre-privatization structural issues	34	(1)
The EU reform agenda	35	(1)
Reform in the three countries	36	(1)
Privatization and structural change	36	(2)
Regulation and deregulation	38	(1)
Economic outcomes	38	(2)
Evaluation	40	(1)
Telecommunications	41	(6)
Pre-privatization structural issues	41	(1)
The EU reform agenda	41	(1)
Reform in the three countries	41	(1)
Privatization and structural change	41	(2)
Regulation and deregulation	43	(1)
Economic outcomes	44	(2)
Evaluation	46	(1)
Railways	47	(7)
Pre-privatization structural issues	47	(1)
The EU reform agenda	47	(1)
Reform in the three countries	48	(1)
Privatization and structural change	48	(1)
Regulation and deregulation	49	(2)
Economic outcomes	51	(2)
Evaluation	53	(1)
Professional services	54	(6)
Structural issues	54	(1)
The Need for a reform agenda	55	(2)
The outcome of a slow reform	57	(2)
Evaluation	59	(1)
Retailing	60	(12)
Basic characteristics of the retail industry	60	(1)
The reform agenda	61	(2)
Implementation of the reform agenda in Germany, Italy, and the UK	63	(3)
Comparison of performance	66	(6)
Postal services	72	(10)
Postal service systems before liberalization	72	(2)
The reform agenda	74	(3)
Implementation of the reform agenda in Germany, Italy, and the UK	77	(3)
Comparison of performance	80	(2)
Water	82	(7)
Pre-privatization structure	82	(1)
The EU reform agenda	83	(1)
Reform in the three countries	83	(1)
Privatization and structural change	83	(2)
Regulation and de-regulation	85	(1)
Economic outcomes	86	(2)
Evaluation	88	(1)
The Changing Role of the Tertiary Sector	89	(8)
The Impact of Services Regulation	97	(8)
Productivity in manufacturing	97	(4)
Inward FDI	101	(4)
Looking Ahead: Will Liberalization Policies Succeed?	105	(36)
References	110	(6)
Appendix 1	116	(7)
Appendix 2	123	(3)
Comments	126	(1)
Olivier Blanchard	126	(9)
Jan Svejnar	135	(6)
Part II. How to Gain Political Support for Reforms	141	(156)
Micael Castanheira
Vincenzo Galasso
Stephane Carcillo
Giuseppe Nicoletti
Enrico Perotti
Lidia Tsyganok
Introduction	143	(8)
Evidence and Theory of Reforms	151	(14)
Evidence about the reform momentum	151	(6)
Theories of reforms: a framework of analysis	157	(8)
Exploit a Parliamentary Majority	165	(22)
The 1986 Social Security Act in the UK	167	(6)
``Pushing reforms'': the role of momentum	173	(7)
Strengths and caveats: a tale of three failures	180	(7)
Widen Your Political Base	187	(19)
Flexicurity in Denmark	189	(4)
Mass privatizations in Central and Eastern European transition countries	193	(6)
The season of reforms in Italy	199	(7)
Divide and Conquer	206	(26)
Divide et Impera	207	(12)
Privatize or corporatize: Telecom Italia versus France Telecom	210	(6)
Break vertical chain: intermediate goods	216	(3)
Trickle-down effects	219	(13)
Market power and gradual reforms	220	(6)
The 1994--1997 reforms of EPL in Spain	226	(6)
Exploit External Constraints	232	(17)
Skoda (Czech Republic) and AvtoZAZ (Ukraine)	233	(2)
The privatization of Skoda	235	(4)
The privatization of AvtoZAZ	239	(8)
Broader evidence	247	(2)
How to Reform: Pulling the Strings	249	(48)
References	255	(8)
Comments	263	(1)
Gerard Roland	263	(8)
Stefano Scarpetta	271	(9)
Final Remarks	280	(1)
Christopher Pissarides	280	(3)
Andre Sapir	283	(4)
Vito Tanzi	287	(10)
Index	297