Assessing Banking and Currency Crisis Risk in Small States

This chapter describes fiscal squeeze in an era of high political volatility and major economic challenges, including mass unemployment, a sharp increase in oil prices, double-digit inflation (i.e. a period of ‘stagflation’), and high levels of trade union militancy. The most dramatic period during the episode occurred in 1976, involving a split Labour Government under two different leaders, with a leadership election following a sudden prime ministerial resignation. That government pursued fiscal squeeze against the background of a deep currency crisis and bailout deals with outside lenders (the US Government and the IMF). The squeeze episode also led to some important institutional developments, producing the first major privatization since the 1950s and a new system of controlling public spending through ‘cash limits’.

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Serbia and Croatia

10.1093/oso/9780198790501.003.0017 ◽

2018 ◽

Author(s):

Filip Ejdus

Keyword(s):

Foreign Policy ◽

Cold War ◽

Democratic Transition ◽

Armed Forces ◽

Small States ◽

Foreign Policies ◽

Defence Strategy ◽

The Creation ◽

The Cold War ◽

National Defence

During the cold war, the Socialist Federative Republic of Yugoslavia was a middle-sized power pursuing a non-aligned foreign policy and a defence strategy based on massive armed forces, obligatory conscription, and a doctrine of ‘Total National Defence’. The violent disintegration of Yugoslavia in the early 1990s resulted in the creation of several small states. Ever since, their defence policies and armed forces have been undergoing a thorough transformation. This chapter provides an analysis of the defence transformation of the two biggest post-Yugoslav states—Serbia and Croatia—since the end of the cold war. During the 1990s, defence transformation in both states was shaped by the undemocratic nature of their regimes and war. Ever since they started democratic transition in 2000, and in spite of their diverging foreign policies, both states have pivoted towards building modern, professional, interoperable, and democratically controlled armed forces capable of tackling both traditional and emerging threats.

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The Small State Challenge

10.1093/oso/9780198796718.003.0001 ◽

2018 ◽

Author(s):

Jack Corbett ◽

Wouter Veenendaal

Keyword(s):

Comparative Politics ◽

Institutional Design ◽

Small States ◽

Small State ◽

Informal Politics ◽

Different Types ◽

Approach Method ◽

Key Terms ◽

First Time

Chapter 1 introduces the main arguments of the book; outlines the approach, method, and data; defines key terms; and provides a chapter outline. Global theories of democratization have systematically excluded small states, which make up roughly 20 per cent of countries. These cases debunk mainstream theories of why democratization succeeds or fails. This book brings small states into the comparative politics fold for the first time. It is organized thematically, with each chapter tackling one of the main theories from the democratization literature. Different types of data are examined—case studies and other documentary evidence, interviews and observation. Following an abductive approach, in addition to examining the veracity of existing theory, each chapter is also used to build an explanation of how democracy is practiced in small states. Specifically, we highlight how small state politics is shaped by personalization and informal politics, rather than formal institutional design.

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