The new
est (10 percent or more of voting stock) in an enter-
to reduce the size and role of government in
prise operating in an economy other than that of
their economies, they will be unable to
generation of
the investor. It is the sum of equity capital, rein-
address the underlying causes of corruption.
vestment of earnings, other long-term capital, and
liberal politicians
That will, in turn, undermine their own pop-
short-term capital as shown in the balance of pay-
in the region
ularity and electoral support.
ments. . . . Data are in current U.S. dollars." See
"World Development Indicators," University of
In time, liberal parties will come back, with
will have to be
Michigan Library, May 28, 1999, www.lib.umich.
new and younger leaders. When the liberals do
edu/govdocs/wdi/wdivar/wdivar6.html.
humbler and
come to power, they will need to finish the job
their predecessors started after the fall of the
6. The Czech Republic received $42.5 billion in foreign
more honest.
direct investment between 1990 and 2004, Hungary
Berlin Wall. The discretion and regulatory
They will need
$42.7 billion (19892004), Poland $67.3 billion
power of the national, regional, and local gov-
(19892004), and Slovakia $11.5 billion (19932004).
to live by the
ernments will have to be substantially reduced,
(Figures are not adjusted for inflation.) World Bank,
and so will the number of bureaucrats. Public
"World Development Indicators Online."
principles they
administration will have to be simplified and
preach.
7. Ibid.
made more transparent. Importantly, the state
will have to substantially reduce its spending.
8. Czech inflation fell from a high of 10.62 percent
Those measures should go a long way toward
in 1998 to a low of 0.1 percent in 2003. Hungarian
inflation fell from a high of 28.97 percent in 1990
reducing corruption in the region. But the new
to a low of 4.63 percent in 2003. Polish inflation
generation of liberal politicians in the region
declined from a high of 555 percent in 1990 to a
will have to be humbler and more honest. They
low of 0.78 percent in 2003, and Slovak inflation
will need to live by the principles they preach.
declined from a high of 13.4 percent in 1994 to a
low of 3.32 percent in 2002. In 2004, Czech infla-
Perhaps then the bright future of liberalism in
tion was 2.83 percent, Hungarian 6.78 percent,
Central Europe will truly be secured.
Polish 3.57 percent, and Slovak 7.54 percent. Ibid.
9. The Czech mortality rate for children under five
Notes
years of age fell from 12 per 1,000 live births in
1989 to 4.4 in 2004. In Hungary it fell from 17.8 to
1. Robert Anderson, "Leftwinger Looks Set to Be
8. Between 1990 and 2004, it fell from 17.9 to 7.5
Slovakia Leader," Financial Times, June 18, 2006,
in Poland and from 14 to 8.5 in Slovakia. Ibid.
http://www.ft.com/cms/s/3bd2f28a-feee-11da-
84f3-0000779e2340.html.
10. The number of physicians per 1,000 people in
the Czech Republic rose from 2.7 in 1989 to 3.5 in
2. On a scale from 0 to 10, where 0 represents the
2003. In Hungary it rose from 2.7 to 3.2 and in
lowest measured level of economic freedom and
Poland from 2.1 to 2.5. There is no comparable
10 represents the highest, Hungary rated 7.4. The
data for the Slovak Republic, but there were 3.1
Czech Republic and Slovakia rated 6.9, and
physicians per 1,000 people in 2003. Ibid.
Poland rated 6.7. See James Gwartney and Robert
Lawson, Economic Freedom of the World: 2006
11. The life expectancy at the time of birth in the
Annual Report (Vancouver: Fraser Institute, 2006).
Czech Republic, Hungary, Poland, and Slovakia
was 71.67 years, 69.46 years, 71.04 years, and 71.02
3. Constant 2000 international dollars adjusted
years, respectively, in 1989. By 2004, it rose to 75.72
for purchasing power parity (PPP).
years, 72.64 years, 74.48 years, and 73.95 years,
respectively. Ibid.
4. The Czech GDP per capita in constant 2000 inter-
national dollars adjusted for PPP rose from $12,817
12. Between 1998 and 2003 (the only time period
in 1992 to $17,837 in 2004. Between 1989 and 2004,
available), Czech spending on healthcare rose
the Slovak income per capita rose from $11,300 to
from 6.6 percent to 7.5 percent (of which public
$13,438 and Hungarian from $12,045 to $15,453.
spending rose from 6.05 percent to 6.75 percent),
The Polish income per capita rose from $7,743 in
Hungarian from 7.3 percent to 8.4 percent (5.46
1990 to $11,924 in 2004. See World Bank, "World
percent to 6.08 percent), Polish from 6 percent to
Development Indicators Online," June 25, 2006,
6.5 percent (3.92 percent to 4.54 percent), and
http://publications.worldbank.org/WDI.
Slovak from 5.7 percent to 5.9 percent. Slovakia
was the only country where public spending on
5. "Foreign direct investment is the net inflows of
healthcare declined from 5.22 percent of GDP to
investment to acquire a lasting management inter-
5.20 percent. Ibid.
20