On the threat of zombification of the retroeconomy
Loading...
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The article discusses the mechanism of zombification of the economy in the context of the
COVID-19 pandemic. In at least some part of any economy in any country, relatively outdated
technologies are being used. This part of the economy, i.e. retroeconomy, due to zombification, can
most easily transformed into a necroeconomy, based on absolutely outdated technologies. In order
to avoid the danger of zombifying a retroeconomy, it is necessary to change the basic principle in
bankruptcy law, as a result of which the liquidation of insolvent firms through bankruptcy becomes a
priority.
Description
1. Ahearne, A.G., & Shinada, N. (2005). Zombie firms and economic stagnation in Japan. International
Economics and Economic Policy, 2(4), 363–381. DOI: 10.1007/s10368-005-0041-1
2. Anderson, R.E. (2004). Get out of the way: How government can help business in poor countries.
Washington: CATO Institute
3. Baldwin, R., & di Mauro, B. W., eds. (2020). Mitigating the COVID economic crisis: Act fast and do whatever it
takes. London: CEPR Press. Retrieved from https://cepr.org/publications/books-and-reports/mitigatingcovid-
economic-crisis-act-fast-and-do-whatever-it-takes
4. Boon, G.-J. (2020). Amending insolvency legislation in response to the COVID-19 crisis. Harvard Law School
Bankruptcy Roundtable, May 12. Retrieved from
https://blogs.harvard.edu/bankruptcyroundtable/2020/05/12/amending-insolvency-legislation-inresponse-
to-the-covid-19-crisis/
5. Desjardins, L., & Emerson, R. (2011). Zombie economics: A guide to personal finance. New York: AVERY
6. Harman, C. (2009). Zombie capitalism. Global crisis and the relevance of Marx. Chicago: Haymarket Books
7. Hatheway, L. (2020). A COVID-19 emergency response plan. Project Syndicate, February 27. Retrieved from
https://www.project-syndicate.org/commentary/covid-19-economy-response-plan-by-larry-hatheway-
2020-02
8. Hoshi, T. (2006). Economics of the living dead. The Japanese Economic Review, 57(1), 30-49.
https://doi.org/10.1111/j.1468-5876.2006.00354.x
9. Hoshi, T., & Kashyap, A. (2005). Solutions to Japan’s banking problems: What might work and what definitely
will fail. In Reviving Japan’s economy: Problems and prescriptions, edited by T. Ito, H. Patrick & D.E.
Weinstein. Cambridge: The MIT Press, 147-195
10. Janus, H. (2016). Avoiding the insolvency of Georgia’s insolvency law. Policy paper series [PP/01/2016].
Berlin/Tbilisi: German Economic Team Georgia. Retrieved from https://isetpi.
ge/storage/media/other/2021-09-27/ec87c7c0-1f7f-11ec-bff6-692335998639.pdf
11. Kane, E.J. (2000). Capital movements, banking insolvency, and silent runs in the Asian financial crisis.
Pacific-Basin Finance Journal, 8(2), 153-175. DOI: https://doi.org/10.1016/S0927-538X(00)00009-3
12. Krugman, P. (2020). Arguing with zombies: Economics, politics, and the fight for a better future. New York:
W.W Norton & Company
13. Malakotipour, M., Perotti, E., & de Weijs, R. (2020). Unfair and unstable: EU bankruptcy reform requires more
scrutiny. VOX EU, February 24. Retrieved from https://cepr.org/voxeu/columns/unfair-and-unstable-eubankruptcy-
reform-requires-more-scrutiny
14. McCormack, G., Keay A., Brown S., & Dahlgreen J. (2016). Study on a new approach to business failure and
insolvency. Comparative legal analysis of the member states’ relevant provisions and practices.
Luxembourg: Publications Office of the European Union. Retrieved from
https://op.europa.eu/en/publication-detail/-/publication/3eb2f832-47f3-11e6-9c64-
01aa75ed71a1/language-en
15. Onaran, Y. (2012). Zombie banks: How broken banks and debtor nations are crippling the global economy.
Hoboken: John Wiley & Sons
16. Papava, V., (2002). Necroeconomics – the theory of post-Communist transformation of an economy.
International Journal of Social Economics, 29(9-10), 796-805. DOI:
https://doi.org/10.1108/03068290210444421
17. Papava, V. (2005). Necroeconomics: The political economy of post-Communist capitalism. New York:
iUniverse
18. Papava, V., (2010). The problem of zombification of the postcommunist necroeconomy. Problems of
Economic Transition, 53(4), 35-51. DOI: 10.2753/PET1061-1991530403
19. Papava, V. (2017). Retroeconomics – Moving from dying to brisk economy. Journal of Reviews on Global
Economics, (6), 455-462. DOI: https://doi.org/10.6000/1929-7092.2017.06.46 . Retrieved from
https://www.lifescienceglobal.com/independent-journals/journal-of-reviews-on-globaleconomics/
volume-6/85-abstract/jrge/2929-abstract-retroeconomics-moving-from-dying-to-briskeconomy
20. Papava, V. (2020a). Coronomic crisis: When the economy is a hostage to medicine. Eurasia Review, March 29.
Retrieved from https://www.eurasiareview.com/29032020-coronomic-crisis-when-the-economy-is-ahostage-
to-medicine-oped/
21. Papava, V. (2020b). Features of the economic crisis under the COVID-19 pandemic and the threat of the
zombie-ing of the economy.” Bulletin of the Georgian National Academy of Sciences 14(3), 128-134
22. Papava, V. (2020c). On the atypical economic crisis under the COVID-19 pandemic. Economics and Business,
XII(4), 9-16
23. Quiggin, J. 2010. Zombie economics: How dead ideas still walk among us. Princeton: Princeton University
Press
24. Roach, S.S. (2020). When China sneezes. Project Syndicate, February 24. Retrieved fromhttps://www.projectsyndicate.
org/commentary/china-coronavirus-shock-prospects-for-global-recession-by-stephen-s-roach-
2020-02
25. Roubini N. (2022). The Unavoidable Crash. Project Syndicate, December 2. Retrieved from
https://www.project-syndicate.org/commentary/stagflationary-economic-financial-and-debt-crisis-bynouriel-
roubini-2022-12
26. Smith, D.C. (2003). Loans to Japanese borrowers. Japanese International Economies, 17(3), 283-304.
https://doi.org/10.1016/S0889-1583(03)00043-1
27. Stiglitz, J.E. (2001). Bankruptcy laws: Basic economic principles. In Resolution of financial distress: An
international perspective on the design of bankruptcy laws, edited by S. Claessens, S. Djankov, & A. Mody,
1-23. Washington: The World Bank
28. Stiglitz, J.E., & Rashid, H. (2020). Which economic stimulus works? Project Syndicate, June 8. Retrieved from
https://www.project-syndicate.org/commentary/stimulus-policies-must-benefit-real-economy-notfinancial-
speculation-by-joseph-e-stiglitz-and-hamid-rashid-2020-
06?utm_source=Project%20Syndicate%20Newsletter&utm_campaign=c41ee7287asunday_
newsletter_14_06_2020&utm_medium=email&utm_term=0_73bad5b7d8-c41ee7287a-
93567601&mc_cid=c41ee7287a&mc_eid=e9fb6cbcc0&barrier=accesspaylog
29. Tilley, A. (2005). European Restructuring: Clarifying Trans-Atlantic Misconceptions. The Journal of Private
Equity, 8(2), 99-103
30. Wallace, I., & Pilkington, C. (2019). Restructuring across Europe – A new era? White & Case, January 25.
Retrieved from https://www.whitecase.com/insight-alert/restructuring-across-europe-new-era
31. Zingales, L. (2021). Attack of the COVID zombies. Project Syndicate, July 2. Retrieved from
https://www.project-syndicate.org/commentary/separating-healthy-firms-from-corporate-zombies-byluigi-
zingales-2021-07?utm_source=Project%20Syndicate%20Newsletter&utm_campaign=df914751a4-
sunday_newsletter_07_04_2021&utm_medium=email&utm_term=0_73bad5b7d8-df914751a4-
93567601&mc_cid=df914751a4&mc_eid=e9fb6cbcc0&barrier=accesspaylog
Keywords
Citation
Conference Proceedings: "The World Economy in the Post-Pandemic Period: Implications and Challenges", Tbilisi, 2023, pp. 197-202