NATO Economics Directorate and Office of Information and Press Deputy Director NATO Economics Directorate 17-19 June, 1998 Ljubljana, Slovenia 17-19 juin, 1998 Ljubljana, Slovnie

Colloquium/Colloque 1998 Economic Developments and Reforms in Cooperation Partner Countries: The Role of the State with Particular Focus on Security and Defence Issues L'volution et les rformes conomiques dans les pays partenaires de la coopration: Le rôle de ltat, en particulier dans les domaines de la scurit et de la dfense Contents Contents Preface Reiner Weichhardt, Deputy Director, Economics Directorate, NATO Chairmans Summary Daniel George, Director, Economics Directorate, NATO Rsum du Prsident Daniel George, Directeur, Direction Economique, OTAN Welcoming Remarks Marjan Senjur, Minister of the Republic of Slovenia for Economic Relations and Development Welcoming Remarks Sergio Balanzino, Deputy Secretary General of NATO Keynote Speech Institutional Change in a Post-Communist Setting Daniel Daianu Minister of Finance, Bucharest, Romania

Panel I :

The Role of the State in Industrial Restructuring Le rôle de l'tat dans la restructuration industrielle: Main visible ou main invisible? Wally Struys, Chef de Dpartement, Ecole Royale Militaire, Bruxelles, Belgique The Role of the State in Industrial Restructuring: Captured by the State, the Invisible Market hand is Powerless Elena Leontjeva, President of the Free Market Institute, Vilnius, Lithuania Slovania: Enterprise Sector Restructuring and EU Accession Marko Simoneti, Matija Rojec, Marco Rems, Ljubljana Faculty of Law, Slovenia The Role of the State in Industrial Restructuring Yuri Khromov, Head, Economic Department, Russias Institute for Strategic Studies, Moscow State Institutions - The Framework for Economic Restructuring and Reform Thomas Nowotny, Political Advisor to the Chief Economist, EBRD, London; Professor of Political Science, University of Vienna

Panel II :

State Budget in a Changings Economic and Security Environment State Budget in a Changings Economic and Security Environment Keith Hartley, Director, Centre for Defence Economics, University of York, United Kingdom Military Expenditure in Transition Countries from a Public Choice Approach Silvana Malle, Head of Division, OECD, Paris State Budget in a Changing Economic and Security Environment: The Polish Experience Katarzyna Zukrowska, Institute of Development and Strategic Studies, Warsaw, Poland State, Budget, Defence and Society: Central European Countries in the Waiting Room Ivo Paparela, APIS s.a.r.l. Consultants, Paris, France; University of Split Providing for the Defence and Security of the Republic of Belarus during the Transition Period to Market Relations and the Development of Integration Oleg Duko, Chairman of the Committee on Economic Issues of Defence, Ministry of Economy, Republic of Belarus

Panel III :

State and Social Security The State and Social Security - Challenges in Central-Eastern Europe Lajos Hthy, Political Secretary of State, Ministry of Labour, Hungary The State and Social Security - Challenges in Albenia Genc Ruli, Director of the Institute of Contemporary Studies, Tirana, Albania Russia's Social Safety Net: Standinf at the Cross-Roads Rostislav Kapeliouchnikov, Institute of World Economy and International Relations, Moscow Social Protection and Redistribution Tine Stanovnik, Faculty of Economics, University of Ljubljana, Slovenia; Institute for Economic Research Some Notes on the Relation between State and Social Security in the Transformation Process Hans-Hermann Hhmann, Head of Department, Federal Institute for Russian, East European and International Studies, Cologne, Germany

Panel IV :

Role of the State in Promoting Technical Progress The Role of the State in Promoting Technical Progress Julian Cooper, Director, Centre for Russian and East European Studies, University of Birmingham, United Kingdom Organisation de la recherche et de la technologie en France: Le rôle de la DGA Jean-Paul Pani, Directeur adjoint des relations internationales, Dlgation Gnrale pour lArmement, Paris, France The Role of the Private Sector in Promoting Technical Progress - Policy Implications for the New NATO Partners Todor Dimitrov, Senior Advisor, Human Dynamics, Vienna, Austria

Panel V :

The Role of The State in External Economic Relations The Role of The State in External Economic Relations Franz-Lothar Altmann, Deputy Director, Sdost-Institut, Munich, Germany Stimulation of Foreign Investment and Regional Economic Cooperation Gerhard Burian, Head of Department for International Economic Policy Relations, Federal Ministry for Economic Affairs, Vienna, Austria International Economic Relations of Slovenia Vojka Ravbar, State Secretary for International Economic Relations, Ministry of Economic Relations and Development, Ljubljana, Slovenia Limits of National Economic Policies Leon Podkaminer, The Vienna Institute for Comparative Economic Studies (WIIW), Austria La Cooperation Internationale dans les Industries de Defense Michel Crochet, AEROSPATIALE, Directeur du Groupe de Programmes Systmes, Branche Espace et Dfense, Paris, France The History of "Offset" in Poland Roman Czerwiski, Manager, Industrial Optics Center S.A., Warsaw, Poland The Role of the State in External Economic Relations Andrej Kumar, Ljubljana Faculty of Economics, Slovenia

Additional Papers Submitted Uzbekistan - Legal Apsects of Fullfillment of Economic Restructuring and Reforms Abduvali Isadjanov, Institute for Strategic and Regional Studies under the President of the Republic of Uzbekistan Some issues pertaining to Government Functions and Failures in Transition and Developing Economies Peter Sutcliffe, Economics Directorate, NATO

Summing Up The Role of the State with Particular Focus on Security and Defence Issues Michael Kaser, Institute for German Studies, University of Birmingham, UK List of Authors and Speakers Copyright © 1998 NATO All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means: electronic, electrostatic, magnetic tape, mechanical, photocopying, recording or otherwise, without permission in writing from the copyright holders. First edition 1998 ISBN 92-845-0108-3 This is the latest in a series bringing together papers presented at the NATO colloquia organised by the NATO Economics Directorate and Office of Information and Press on economic issues in the former USSR and Central and East European countries. For further information please write to the Director, Office of Information and Press, 1110 Brussels, Belgium. The articles contained in this volume represent the views of the authors and do not necessarily reflect the official opinion or policy of member governments or NATO.