European Economies since the Second World War

Citation

Bailey, I. (2000), "European Economies since the Second World War", European Business Review, Vol. 12 No. 1, pp. 50-52. https://doi.org/10.1108/ebr.2000.12.1.50.1

This book breaks away from the format of most European economic overviews, by concentrating on specific countries, rather than adopting an EC centric approach. The main focus is on the four major economies of Germany, France, the United Kingdom, and Italy. But in addition, a number of other European economies are reviewed: Belgium, The Netherlands, Portugal, Spain, Denmark, Norway, Sweden, Czechoslovakia, Hungary and Poland.

Organisationally the book is disappointing. The smaller economies are clustered uncomfortably by geographic or historical region, on the flawed assumption that proximity dictates similarity. As a result, these chapters tend to flit between economies and become disjointed when no obvious parallels exist. The editor has identified four themes that form a template for organising each chapter: the post‐war recovery boom (c. 1946‐73), the US‐led liberalisation of international trade (1960s ff), the slow‐down in the early 1970s coupled with a rise in inflation, and the move toward financial liberalisation and privatisation in the 1980s. The edges of these periods tend to fray as each new economy is considered, and the reader is left with the impression that the contributors are trying to squeeze into a jacket one size too small.

As the book does not seek to review the European economy as a whole, discussion of the supranational institutions of the European Community has been minimised. But as the ERP, EFTA and the EC have had such a significant impact on the European economies, at least an appendix overviewing their policies was required. Finally, a need exists for a conclusion that identifies the key factors which assisted or hindered growth and might more usefully be used to cluster economies according to their economic rather than geographic profiles.

In contrast to the format, the content of the book requires praise. The quality of the chapters varies, because each one is an individual contribution, but in general the standard is good. It provides useful overviews of 14 European economies, that include comparative data and valuable insights. For example, the impact of the Berlin wall is placed in its economic context, because it curtailed the inflow of skilled workers from the East and acted as a break on the ability of West German industry to expand. The chapter on France includes a useful assessment of the French labour market, that reveals claims of rigidity are best explained by reference to a legal environment, that deters companies from taking on new employees, because labour is expensive to maintain and difficult to shed.

Each chapter closes with an extensive bibliography that ensures the book will be a useful tool for students. In conclusion, despite the organisational flaws, this book represents a useful contribution to undergraduate study of the European economy.