Introduction to the course:

In the contemporary global economy there is an increasing interdependence between the economies of the more developed nations and the newly emerging market countries. Both groups of countries have a vested interest in mutual economic growth and political stability.

The Central European countries to be covered in this course (Czech Republic, Slovak Republic, Hungary and Poland) are presently trading partners and recipients of foreign direct investment from the world's wealthier nations and their saliency will certainly increase in the future A feature shared by these transitional economies is a complex, multi- dimensional transition process that is rapidly transforming their societies, cultures, political structures, education systems and economies. These various transitional developments highlight the need to develop an effective infrastructure so that these countries can further develop their economies and sustain political reform. An important component of this transitional process is the training of future economic, business and political leaders. These leaders must establish viable policies and institutions in the public and private sectors which are capable of meeting the challenges of the profound changes. An important institution in this endeavor is that of higher education. It is justifiably held that, among the new emerging economies, the most successful are those that have educated their work force and leaders at a level that equals or even surpasses those in the most developed countries.

This course will examine the transition process within the context of the business, economic, political and educational changes occurring in these transitional economies. This course provides a unique opportunity for students to study the issues involved in a changing global economy and examine the business climate (through scheduled site visits and other cultural activities) within a dynamic emerging market country.

Course Objectives:

- To create an understanding of the unique characteristics and challenges facing countries in their transition to a market economy.

- To describe and analyze the current political and economic climate in which business operates in an emerging economy.

- To consider the interface between business, government and higher education institutions for the sustainability of continual growth.

The required text and recommended books for the course are the following:

1) From Plan to Market: World Development Report 1996. Oxford University Press: Washington, D.C. for the World Bank. (Required)

2) Macesich, G. (1996) Transformation and Emerging Markets Connecticut: Praeger Publishing. (Required)

3) Kepler, M. And Lechner, M. (1997). Emerging Markets: Research, Strategies, and Benchmarks Chicago: Irwin Professional Publishing. (Recommended).

In addition to the required texts, documents obtained from international agencies (OECD Reports, World Bank Reports, etc.) and current research reports collected from colleagues will also be provided for the students.

Topics for the course:

•  Historical development of the market economy in Central Europe
•  Privatization in the Czech Republic
•  The contemporary role of the business to higher education relationship in meeting the economic needs of a transitional economy. Concepts to be covered include:

 a)  the flexibility of the education system to meet the dynamic needs of a developing market economy

b) the ability of the country=s financial resources (both public and private) to reform the existing system of higher education.

•  The business to government relationship: political and economic challenges to the continual growth of emerging economies
•  The role of the European Union in the economic and political transformation of Central Europe

 Course requirements:

 The student is expected to complete required readings for the class and be prepared to discuss course assignments.

Course evaluation will be based upon:

1) Class participation (10%);

2) Final term paper presentation (10%);

3) A mid term exam (40%);

4) A final term paper (40%).

The mid term essay exam will concentrate on the topics and issues discussed during lectures and site visits.

The final report, due on the last day of class, will focus on one or more issues (discussed previously with the instructor) developed throughout the course drawing upon both in class work and on site visits with business, government and academic officials. The final report should be a minimum of 10 pages in length. The students will work on the final report in teams of two or more and will be required to give a presentation at the end of the term.

Course Outline

Topics:

Political and economic history of Central Europe from 1989 to present

The Business to government relationship in the Czech Republic

Foreign investment in Central Europe

Readings for week 1:

Keppler and Lechner; chapter 2 pages 9-84

Economist Annual Report for the Czech Republic year 1997

Macesich; pages 18-29

Handouts will also be provided

June 15 and 17

Introduction to the course

Historical, political and economic overview of Central Europe from 1989 to the present

The current status of the business to government relationship in the Czech Republic

Foreign investment in the Czech Republic

June 18

Site visits to the U.S. Embassy and the U.S.- Czech Commerce Center

June 19

Day trip to Ceske Budejovice and Ceske Krumlov (on site lecture as to the economic and business changes to these small historical sites - examination of the impact of tourism)

Topics:

Business under communism and now

Privatization in the Czech Republic

Business to higher education relationship: training for the new economy

Mid term essay

Readings for week 2:

Macesich; ch 2, pages 7-18

World development report; pages 7-66

Handouts to be provided

June 22

Technical training for the new economy

Higher education in the new economy

Guest lecture by academic leaders from the Czech Management Center discussing issues of transitions in the higher education to business relationship

Afternoon visit and discussion with academic and government officials at the Center for Higher Education Studies and at the Center for Economic Research and Graduate Education.

June 24

Privatization: Issues and challenges

Visit to a privatized company (e.g., CKD Praha - A major Czech engineering and manufacturing company)

June 25

Mid term essay exam

Visit to an international company (e.g., Skoda-Volkswagon - largest joint venture in the Czech Republic)

June 26

Day trip to Karlovy Vary. Examination of the Beckerovka company, a previously successful company adapting to the new market economy.

Or

A site visit to Bratislava, Slovakia to discuss with individuals the development of the University of Pittsburgh program at Comenius University in building an MBA program at that institution.

Topics:

Political and economic ties with the European Union

Issues of trade

Future challenges to the growth of emerging economies

Readings for week 3

Handouts and other documents from the Prague office of the TEMPUS program

June 28

The European Union's impact in Central Europe

Trade with the west

Visit to European Union agencies in Prague to discuss the EU' s role in the region (e.g., TEMPUS, PHARE etc.)

June 30

Future challenges to emerging countries

Round table discussion with business, political and academic leaders

July 1

Course paper due

Student presentations

End of the term