Economic Policies of Populist Leaders: A Central and Eastern European Perspective

This book explores the economic impacts of populism in Central and Eastern European countries, focusing on who gets what under populist rule. It demonstrates that studying macroeconomic variables alone cannot explain the full story and that a more nuanced scrutiny is required. Populists have reshaped redistributive policies but have not neglected the budget constraint, redefining the regulatory framework and property rights structure.

Format: Hardback
Length: 280 pages
Publication date: 05 December 2023
Publisher: Taylor & Francis Ltd

This book delves into the economic consequences of populism in Central and Eastern European countries, offering a comprehensive comparative analysis. While populism has flourished in the EU's new member states since the global financial and economic crisis, it differs from cases in Latin America, Brexit, or the Trump administration in its focus on trade protectionism or unsustainable macroeconomic policies. Instead, the book emphasizes the need for a nuanced examination of who benefits under populist rule. Adopting an ideational definition of populism, the volume demonstrates that Central and Eastern European populists have significantly reshaped redistributive policies, while also considering the budget constraints of the general government. It highlights a tendency to disregard institutional decision-making constraints and redefine the regulatory framework and property rights structure of these economies. This innovative edited volume is of interest to readers in political economy and political science seeking to understand the profound impacts of populism in the region.

Introduction:
Populism has gained significant traction in recent years, particularly in Central and Eastern European countries. While the term "populism" has been widely used to describe a range of political movements and ideologies, its economic implications are often overlooked. This book aims to bridge this gap by exploring the economic impacts of populism in these countries.

Comparative Analysis:
Central and Eastern European economies have experienced varying degrees of populist rule over the past decade. Some countries, such as Hungary and Poland, have adopted policies that prioritize national sovereignty and economic self-sufficiency, while others, such as Italy and Greece, have faced economic challenges and political instability.

Economic Impacts of Populism:
One of the key economic impacts of populism is its emphasis on redistributive policies. Populist leaders often promise to reduce inequality and increase social welfare benefits for their constituents. However, the implementation of these policies can have significant fiscal consequences, particularly if they are not funded by increased taxes or reduced government spending.

Fiscal Balance and Current Account Positions:
Many scholars have argued that studying macroeconomic variables such as fiscal balance or current account positions can provide insights into the economic consequences of populism. However, the book argues that these variables alone cannot fully explain the economic impacts of populism. Instead, a more nuanced scrutiny of who gets what under populist rule is required.

Redistributive Policies:
Central and Eastern European populists have heavily reshaped redistributive policies, particularly in terms of social welfare benefits and tax policies. For example, some countries have implemented flat tax systems or reduced income tax rates for low-income individuals, while others have increased social welfare benefits such as healthcare and pensions.

Budget Constraints:
However, the implementation of redistributive policies can also put pressure on the budget constraint of the general government. If these policies are not funded by increased taxes or reduced government spending, the government may need to borrow more money or implement austerity measures to balance the budget.

Institutional Constraints:
Another important aspect of the economic consequences of populism is the disregard for institutional constraints on decision-making in the economy. Populist leaders often prioritize short-term gains over long-term sustainability, which can lead to unsustainable policies and economic instability.

Regulatory Framework and Property Rights Structure:
Populist leaders may also redefine the regulatory framework and property rights structure of the respective economies. This can have significant implications for economic growth and development, particularly if it leads to increased government intervention or protectionism.

Conclusion:
In conclusion, this book provides a comprehensive comparative analysis of the economic consequences of populism in Central and Eastern European countries. While populism has brought about significant changes in redistributive policies, it is important to recognize the fiscal and institutional constraints that underpin these policies. A more nuanced scrutiny of who gets what under populist rule is necessary to fully understand the economic impacts of populism in the region.

Weight: 707g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032458298