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The Network Society - University of Massachusetts Amherst

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80 <strong>The</strong> <strong>Network</strong> <strong>Society</strong><br />

before climbing back to 60.9 in 2001.<br />

Polish output per capita and productivity experienced a steady<br />

advance, but by 2001 several East European countries had recovered<br />

from the debacle <strong>of</strong> the early 1990’s. 13 In 2001 output per capita was<br />

highest in tiny Slovenia at 49.8. This reflected input per capita <strong>of</strong> 49.4<br />

and a dazzling productivity level <strong>of</strong> 100.8, comparable to the levels <strong>of</strong><br />

Western Europe. <strong>The</strong> Czech Republic was next with output per capita<br />

at 42.0 in 2001 and a level <strong>of</strong> input per capita <strong>of</strong> 51.4. However, the<br />

Czech productivity level <strong>of</strong> 81.6 lagged behind Hungary’s 82.5 and<br />

Slovakia’s 92.3.<br />

<strong>The</strong> downturn in output per capita and productivity was especially<br />

severe in the economies <strong>of</strong> the former Soviet Union. Russia’s level <strong>of</strong><br />

output per capita fell from 32.2 in 1989 to 19.3 in 1995 before recovering<br />

feebly to 22.5 in 2001. Ukraine fell from a considerably higher<br />

level <strong>of</strong> 39.6 in 1989 to 17.6 in 1995 and 18.2 in 2001. Russian input<br />

per capita remained essentially unchanged throughout the period<br />

1989-2001, while productivity mirrored the decline in output, falling<br />

from a West European level <strong>of</strong> 91.0 in 1989 to 55.9 in 1995 before<br />

improving to 65.5 in 2001. <strong>The</strong> most extreme forms <strong>of</strong> economic collapse,<br />

followed by very weak recoveries, can be seen in the small<br />

economies <strong>of</strong> Georgia, the Kyrgyz Republic, and Moldova.<br />

Output per capita in Sub-Sahara Africa was the lowest in the world<br />

throughout the period 1989-2001. Only South Africa, tiny Mauritius,<br />

and Botswana exceeded world average levels throughout the period.<br />

South Africa’s economy was largest in the region and generated more<br />

than 40 percent <strong>of</strong> regional product. However, South African output<br />

per capita fell slightly, input per capital remained stationary, and productivity<br />

slumped during the period 1989-2001. South African productivity<br />

in 1989 was 91.4, above the level <strong>of</strong> the Non-G7<br />

industrialized economies, but fell to 79.4 in 1995 before climbing back<br />

to 84.6 in 2001.<br />

All the economies <strong>of</strong> North Africa and the Middle East fell short <strong>of</strong><br />

world average levels <strong>of</strong> output and input per capita, except for Tunisia,<br />

which closely tracked world averages. Output per capita grew slowly<br />

13<br />

A comprehensive analysis <strong>of</strong> in impact <strong>of</strong> IT investment in Poland is presented by<br />

Piatkowski (2004).

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