Abstract
This chapter analyzes developmental pathways and economic growth models in Eastern and Southern Europe from the perspective of the dependency research program. It focuses on two main situations of dependency in Europe: peripheral financialization with demand-led growth in the South and dependent reindustrialization through foreign direct investments with export-led growth in Central and Eastern Europe. Contrary to existing structuralist approaches, the chapter argues that these situations of dependency represent different solutions to the challenge of market integration with much richer and more developed economies of the European core. While the South sought to protect domestic firms, allowing for or even directly fostering deindustrialization, Central and East European countries aimed to preserve industrial legacy even at the expense of FDI-dependency. Such responses were in turn shaped by specific domestic political coalitions as well as by different strategies of the EU, which left more or less space for reproduction or transformation of domestic coalitions. While contemporary situations of dependency bear different developmental implications than those in the twentieth-century Latin America, the main insights of the dependency research program remain pertinent for analyzing the challenges of core–periphery integration in the twenty-first-century Europe.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Baccaro, L., & Pontusson, J. (2016). Rethinking comparative political economy. Politics & Society, 44(2), 175–207.
Baldwin, R. (2016). The great convergence: Information technology and the new globalization. Harvard University Press.
Becker, J., & Jäger, J. (2012). Integration in crisis: A regulationist perspective on the interaction of European varieties of capitalism. Competition & Change, 16(3), 169–187.
Bohle, D., & Greskovits, B. (2012). Capitalist diversity on Europe’s periphery. Cornell University Press.
Bohle, D., & Greskovits, B. (2018). Politicising embedded neoliberalism: Continuity and change in Hungary’s development model. West European Politics. https://doi.org/10.1080/01402382.2018.1511958.
Bohle, D. (2018). European integration, capitalist diversity and crises trajectories on Europe’s Eastern periphery. New Political Economy, 23(2), 239–253.
Bonizzi, B., Kaltenbrunner, A., & Powell, J. (2019). Subordinate financialization in emerging capitalist economies. In P. Mader, D. Mertens, & N. van der Zwan (Eds.), The international handbook of financialization (pp. 177–187). Routledge.
Brazys, S., & Regan, A. (2017). The politics of capitalist diversity in Europe: Explaining Ireland’s divergent recovery from the euro crisis. Perspectives on Politics, 15(2), 411–427.
Bruszt, L., & Palestini, S. (2016). Regional development governance. In T. Borzel & T. Risse (Eds.), The Oxford handbook of comparative regionalism. Oxford University Press.
Bruszt, L., & Vukov, V. (2017). Making states for the single market: European integration and the reshaping of economic states in the Southern and Eastern peripheries of Europe. West European Politics, 40(4), 663–687.
Bruszt, L., & Vukov, V. (2018). Governing market integration and development—Lessons from Europe’s Eastern and Southern peripheries: Introduction to the special issue. Studies in Comparative International Development, 52(2), 153–168.
Bulfone, F. (2017). The state strikes back: Industrial policy, state power and the emergence of competitive multinational enterprises in Italy and Spain. PhD dissertation, European University Institute, Florence.
Cardoso, F. H. (2009). New paths: Globalization in historical perspective. Studies in Comparative International Development, 44(4), 296–317.
Cardoso, F. H., & Faletto, E. (1979). Dependency and development in Latin America. University of California Press.
Crouch, C. (Ed.). (2000). After the euro. Oxford University Press.
Dellepiane, S., Hardiman, N., Pagoulatos, G., & Blavoukos, S. (2018). Pathways from the European Periphery: Lessons from the political economy of development. Studies in Comparative International Development, 53(2), 239–260.
Delors Report. (1989). Report on economic and monetary union in the European Community (Committee for the Study of Economic and Monetary Union). Luxembourg: Office for Official Publications of the EC.
Dos Santos, T. (1970). The structure of dependence. The American Economic Review, 60(2), 231–236.
Drahokoupil, J. (2008). Globalization and the state in Central and Eastern Europe: The politics of foreign direct investment. Routledge.
Etchemendy, S. (2004). Revamping the weak, protecting the strong, and managing privatization: Governing globalization in the Spanish takeoff. Comparative Political Studies, 37(6), 623–651.
Etchemendy, S. (2011). Models of economic liberalization: Business, workers, and compensation in Latin America, Spain, and Portugal. Cambridge University Press.
Eyal, G., Szelenyi, I., & Townsley, E. R. (2000). Making capitalism without capitalists: Class formation and elite struggles in post-communist Central Europe. Verso.
Ferreira da Silva, A., Amaral, L., & Neves, P. (2016). Business groups in Portugal in the Estado Novo period (1930–1974): Family, power and structural change. Business History, 58(1), 49–68.
Fernandez-Villaverde, J., Garicano, L., & Tano Santos, T. (2013). Political credit cycles: The case of the eurozone. Journal of Economic Perspectives, American Economic Association, 27(3), 145–166.
Gould, J. A. (2011). The politics of privatization: Wealth and power in post-communist Europe. Lynne Rienner Publishers.
Hall, P. A. (2014). Varieties of capitalism and the Euro crisis. West European Politics, 37(6), 1223–1243.
Hall, P. A., & Soskice, D. (Eds.). (2001). Varieties of capitalism: The institutional foundations of comparative advantage. Oxford University Press.
Hardiman, N.‚ & Dellepiane S. (2012). The New Politics of Austerity: Fiscal responses to csrisis in Ireland and Spain. UCD Geary Institute Working.
Holman, O. (1996). Integrating Southern Europe: EC expansion and the transnationalisation of Spain. Routledge.
Iacono, R.‚ & Ranaldi, M. (2018). Sources of Inequality in Italy. Working Papers 479, ECINEQ, Society for the Study of Economic Inequality.
Johnston, A., & Regan, A. (2016). European monetary integration and the incompatibility of national varieties of capitalism. Journal of Common Market Studies, 54(2), 318–336.
Jones, E. (2015). Getting the story right: How you should choose between different interpretations of the European crisis (and why you should care). Journal of European Integration, 37(7), 817–832.
Krippner, G. R. (2005). The financialization of the American economy. Socio-Economic Review, 3(2), 173–208.
Lagoa, S., Leão E., Paes Mamede, R., & Barradas, R. (2013). Report of the financial system in Portugal. FESSUD Studies in Financial Systems Nº 9, Leeds.
Lains, P. (2002). Why growth rates differ in the long run: Capital deepening, productivity growth and structural change in Portugal, 1910–1990. Paper presented at the Conference on ‘Desenvolvimento económico português no espaço europeu: determinantes e políticas’, Banco de Portugal, 2002.
Lane, P. (2006). The real effects of European monetary union. Journal of Economic Perspectives, 20(4), 47–66.
Lapavitsas, C. (2013). Profiting without producing: How finance exploits us all. Verso.
Markiewicz, O. (2019). Stuck in second gear? EU integration and the evolution of Poland’s automotive industry. Review of International Political Economy. https://doi.org/10.1080/09692290.2019.1681019.
Marques, P. (2015). Why did the Portuguese economy stop converging with the OECD? Institutions, politics and innovation. Journal of Economic Geography, 15, 1009–1031.
Medve-Balint, G. (2014). The role of the EU in shaping FDI flows to East Central Europe. Journal of Common Market Studies, 52(1), 35–51.
Medve-Balint, G. (2018). The cohesion policy on the EU’s Eastern and Southern periphery: Misallocated funds? Studies in Comparative International Development, 53(2), 218–238.
Milanovic, B. (2019a). Capitalism alone: The future of the system that rules the world. Harvard University Press.
Milanovic, B. (2019b, November 4). Capitalism alone. Lecture at the Barcelona Institute for International Studies, Barcelona.
Nölke, A., & Vliegenthart, A. (2009). Enlarging the varieties of capitalism: The emergence of dependent market economies in East Central Europe. World Politics, 61, 670–702.
Novokmet, F. (2017). Between communism and capitalism: Essays on the evolution of income and wealth inequality in Eastern Europe 1890–2015 (Czech Republic, Poland, Bulgaria, Croatia, Slovenia, Russia). Ph.D. dissertation, Paris School of Economics, France.
Nunes, J., & Montanheiro, L. (1997). Privatisation in Portugal: An insight into the effects of a new political strategy. Competitiveness Review, 7(2), 59–78.
Perez, S. (1997). Banking on privilege: The politics of Spanish financial reform. Cornell University Press.
Perez, S. (2019). A Europe of creditor and debtor states: Explaining the north/south divide in the Eurozone. West European Politics. https://doi.org/10.1080/01402382.2019.1573403.
Petrova, B. (2018) Determinants of inequality in Latin America and Eastern Europe. Ph.D. Dissertation, University of North Carolina at Chapel Hill. https://doi.org/10.17615/mydp-5216..
Rand Smith, W. (1998). The left’s dirty job: The politics of industrial restructuring in France and Spain. University of Pittsburgh Press.
Romero, J., Brandis, D., Delgado Viñas, C., García Rodríguez, J. L., Gómez Moreno, M. L., Olcina, J., Rullán, O., Vera-Rebollo, J. F., & Vicente Rufí, J. (2018). Aproximáción a la Geografía del despilfarro en España: balance de las últimas dos décadas. Boletín de la Asociación de Geógrafos Españoles, 77, 1–51.
Royo, S. (2014). Institutional degeneration and the economic crisis in Spain. American Behavioral Scientist, 58(12): 1568–1591.
Rubio-Mondejar, J., & Garrués-Irurzun, J. (2016). Economic and social power in Spain: Corporate networks of banks, utilities and other large companies (1917–2009). Business History, 58(6), 858–879.
Schwartz, H., & Etchemendy, S. (2015). ISI states reverse course: From import substitution to open economy. In S. Leibfried, E. Huber, M. Lang, J. D. Levy, & J. D. Stephens (Eds.), The Oxford handbook of transformations of the state. Oxford University Press.
Scepanovic, V., & Bohle, D. (2018). The institutional embeddedness of transnational corporations: Dependent capitalism in central and Eastern Europe. In A. Nolke & C. May (Eds.), Handbook of the international political economy of the corporation (pp. 152–166). Edward Elgar.
Shields, S. (2004). Global restructuring and the polish state: Transition, transformation or transnationalization? Review of International Political Economy, 11(1): 132–154.
Simonazzi, A., Ginzburg, A., & Gianluigi, N. (2013). Economic relations between Germany and Southern Europe, Cambridge Journal of Economics, 37(3): 653–675.
Stockhammer, E. (2016). Neoliberal growth models, monetary union and the euro crisis. A post-keynesian perspective, New Political Economy, 21(4): 365–379.
Toharia, L. (2000). Employment patterns in Spain between 1970 and 2001. International Journal of Political Economy, 30(2), 82–98.
Toplišek, A. (2019). The political economy of populist rule in post-crisis Europe: Hungary and Poland. New Political Economy. https://doi.org/10.1080/13563467.2019.1598960.
Vukov, V. (2013). Competition states on Europe’s periphery: Race to the bottom and to the top. Ph.D. dissertation, European University Institute, Florence.
Vukov, V. (2016). The rise of the competition state? Transnationalization and state transformations in Europe. Comparative European Politics 14(5): 523–546.
Vukov, V. (2020a). European integration and weak states: Romania’s road to exclusionary development. Review of International Political Economy, 27(5), 1041–1062.
Vukov, V. (2020b). More Catholic than the Pope? Europeanisation, industrial policy and transnationalised capitalism in Eastern Europe. Journal of European Public Policy, 27(10), 1546–1564.
Weeks, S. (2019). Portugal in ruins: From ‘Europe’’ to crisis and austerity.’ Review of Radical Political. Economics, 50(2), 246–264.
World Bank. (2017). Growing united: Upgrading Europe’s convergence machine. World Bank.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Vukov, V. (2021). Dependency, Development, and the Politics of Growth Models in Europe’s Peripheries. In: Madariaga, A., Palestini, S. (eds) Dependent Capitalisms in Contemporary Latin America and Europe. International Political Economy Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-71315-7_7
Download citation
DOI: https://doi.org/10.1007/978-3-030-71315-7_7
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-71314-0
Online ISBN: 978-3-030-71315-7
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)