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Austria Openings Toward the East
Austria had maintained close trade relations with various
states of Central and Eastern Europe under the Council for Mutual
Economic Assistance (Comecon) arrangements. Those arrangements
collapsed at the end of the 1980s and, as of the early 1990s, had
not yet been renegotiated. Because of the turmoil in several East
European states, for example in the former Yugoslavia, precise
trade arrangements will likely require some time to be
negotiated.
Nonetheless, Austrian firms have proceeded actively to
strengthen their position in Eastern Europe. Austrian firms soon
were a major part of the thousands of joint venture agreements
established with Hungary, the Czech Republic, and Slovakia.
Austrian firms have also become involved in many joint ventures
in the former Yugoslavia, but their fate remains uncertain as
long as the region is unstable. Austrian firms have always been
well placed in Slovenia and Croatia, both of which were once part
of Austria-Hungary, and Austria resumed economic links with them
as soon as they became independent in 1992.
Austrian foreign investment, which has always remained
closely in balance with foreign investment in Austria, although
both had risen over the years, suddenly doubled to S11.4 billion
in 1989 and rose to a new high of S18.3 billion in 1990. Much of
the new investment was destined for Eastern Europe.
One of the hopes of the government is that many companies
wanting to expand their operations in Eastern Europe will
establish offices in Vienna. The city offers office space with
modern facilities, often at modest prices. As of the early 1990s,
a number of companies had set up operations there for these
reasons.
In a broader sense, many of Austria's domestic and
international policies will need to be adjusted to take into
account developments taking place around Austria. Such concerns
have been expressed before, by Austrians and by others, but may
be more urgent in the future than in the past. The opening toward
Eastern Europe and the creation of the EEA and the Single Market
have changed the foundations on which Austria has functioned
since the 1950s and will present new competitive challenges for
production, marketing, and services.
As of late 1993, however, there were no indications that
Austria had changed its patterns of behavior and operations,
largely because they have been successful. The pressures that
might provoke such a revision have not risen to the level where
change is imperative. Moreover, if Austria needs to make changes
to adjust to new pressures, many arguments could be made that
some form of social partnership or social consensus mechanism may
be more necessary than ever.
* * *
As is the case with many small countries, few studies of
Austria exist in English, and the economy receives even less
attention than other areas. Except for one collection of essays
dating back to 1982, The Political Economy of Austria,
edited by Sven W. Arndt, nothing comprehensive is available on
the economy. Even books in other languages are rare, in part
because most German-language books are highly technical. Instead,
those who want to read about the Austrian economy must look for
economic chapters in general texts about Austria, many of which
are unsatisfactory.
However, a number of publications exist that contain
relatively good information. The most useful are the annual
publications of the Organisation for Economic Co-operation and
Development that not only contain statistical information but
also essays on various basic aspects of the economy. The
quarterly and annual surveys published by the Economist
Intelligence Unit, Country Report: Austria and Country
Profile: Austria, also offer useful statistical information
as well as summary analyses.
A number of German-language periodicals are published in
Austria, including some published by major banks and some that
are published by the Österreichisches Institut für
Wirtschaftsforschung. These periodicals offer some useful up-to-
date analyses as well as complete statistics. Thus, although the
Austrian economy does not receive the kind of bibliographic
attention that larger economies attract, basic information is
available and reliable. (For further information and complete
citations,
see
Bibliography.)
Data as of December 1993
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