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Stockholm Institute of Transition Economics Celebrates Its 35th Anniversary
June 15, 2024, marks a significant milestone for the Stockholm Institute of Transition Economics (SITE) as it celebrates its 35th anniversary. Over the past three and a half decades, SITE has established itself as a leading institution dedicated to economic research and the development of policies for transition economies.
From its beginnings as Östekonomiska Institutet in 1989, under the leadership of Anders Åslund, to the rebranding as SITE in 1996 with Erik Berglöf at the helm, SITE has continuously evolved as a research institution, securing a position among the world’s top think tanks in the field of economics, with a focus on Eastern Europe. In 2006, Torbjörn Becker brought his expertise from the International Monetary Fund (IMF) to lead SITE into a new era of research excellence, strengthening the focus on institution-building in the region.
Reflecting on this anniversary, Torbjörn Becker, Director of SITE, says:
“As we celebrate 35 years of economic research, policy analysis, and institution building, we are reminded of how important it is that we continue to work in this region. I am particularly proud that we are able to work with our fantastic partners in the FREE Network that make significant contributions to how their respective countries reform and develop.”
Building Institutions for Change
Since its foundation in 1989, SITE has been at the forefront of economic research and policy development in transition economies, playing a crucial role in establishing independent think tanks and academic institutions in Belarus, Georgia, Latvia, Poland, Russia, and Ukraine. These research institutes collectively established the Forum for Research on Eastern Europe and Emerging Economies (FREE Network); an umbrella organization that fosters collaboration and mutual learning among researchers, as well as administrative and institutional capacity building. As one of its key initiatives, the network publishes weekly policy briefs addressing contemporary economic policy challenges in Eastern Europe and emerging markets.
Bridging the Gap Between Research and Policy Making
SITE’s ambition for the years to come remains unchanged: to bridge the gap between leading academic research and current policy making through debate and communication. At our flagship events, such as SITE Development Day and the SITE Academic Conference, we are committed to debating topics where research can pave the way to solving global and regional challenges. In our weekly seminars and regular workshops, we remain dedicated to exchanging ideas with leading experts and policymakers. In the last decades, SITE’s research has been cited by top journals in economics, while its impact beyond academic journals has resulted in more than 30 million impressions across local and international news.
Key Milestones in SITE’s History
Using the Financial System to Enforce Export Controls
A new Bruegel working paper shows how Russia’s export controls could work better if banks and firms play a larger role. Despite sweeping sanctions, Russia’s imports of “battlefield goods” bounced back close to pre-invasion levels in 2023. To close loopholes, the authors suggest bank-style due diligence for lenders and manufacturers. This approach could choke off illicit tech flows more effectively.
Why Export Controls Matter Now
Russia still gets critical microelectronics and navigation gear through complex routes. In 2023, it imported $12.5 billion of high-priority items, just 2% below pre-war levels. Import patterns shifted. Mainland China accounted for 56.3% and Hong Kong for 19.3%. Meanwhile, Turkey rose to 5.7% and the UAE to 4.2%.
In addition, 40% of these goods are produced for companies headquartered in sanctioning countries. Even more striking, 95% of identifiable foreign parts in Russian weapons still come from Western producers. These figures show why tighter export controls remain urgent.
What the Study Set Out to Do
The authors asked why current export controls underperform. As a solution, they outline a practical plan. First, banks should identify and block suspicious trade payments. Second, non-financial firms should adopt “know your customer” checks across their distributor networks. Together, these steps would help reduce illicit flows.
Key Research Findings
- Russia’s battlefield goods imports rebounded quickly after spring 2022 and are again near pre-invasion levels.
- Third-country hubs, especially China and Hong Kong, now dominate shipment routes, as shown in the report’s charts.
- Western technology remains embedded. Forty percent of the import value is tied to coalition producers. Moreover, 95% of foreign parts in Russian weapons are Western.
- Leveraging banks’ AML/CFT systems and tightening disclosure, such as item descriptions and HS codes, would make export controls stronger.
What This Means
In practice, turning banks into frontline enforcers could flag risky payments before goods move. For example, trade finance documents often reveal items and counterparties. Furthermore, extending similar diligence to manufacturers, backed by penalties for negligence, would close loopholes. As a result, sensitive parts would find it harder to reach Russia. Finally, stronger guidance and wider data sharing are essential to make export controls credible.
Read the Full Report
Learn more about the role of export controls, the challenges of implementation, and the financial system’s contribution in the latest working paper from KSE Institute and Bruegel.
Meet the Researchers
- Benjamin Hilgenstock: KSE Institute.
- Elina Ribakova: Bruegel.
- Anna Vlasyuk: KSE Institute.
- Guntram Wolff: Bruegel.
Georgia (de)Media Polarization Index: Measuring Political Bias Across Media Outlets
The Georgia Media Polarization Index, developed by the ISET Policy Institute, is a key tool for measuring political dissimilarity across the country’s leading media outlets. This Index captures the level of polarization in Georgian media by examining the political differences in news coverage. It offers a clear, data-driven approach to understanding media bias.
What the Media Polarization Index Measures
The Media Polarization Index uses a weighted average to measure political dissimilarities between various Georgian media outlets. Ratings determine the weight assigned to each outlet, so higher-rated sources have a greater influence on the results. The Index evaluates how different the political content is across these media platforms. This creates a clear picture of where each media outlet stands in terms of political bias.
The Role of Natural Language Processing (NLP) Models
To build the Index, the ISET Policy Institute uses advanced Natural Language Processing (NLP) techniques. The analysis relies heavily on two models: Word2Vec and Doc2Vec. These models analyze the language in political news articles and extract deeper meanings from the content.
The Doc2Vec model, specifically trained for the Georgian language, plays a central role in this process. It was developed using a large collection of over 250,000 political news articles from diverse media outlets in Georgia. This training allows the model to interpret nuanced meanings in political news. As a result, it provides a highly detailed analysis of media content.
How the Index Measures Dissimilarity
The Doc2Vec model is applied to political news articles from several prominent Georgian media outlets, including Imedi, Mtavari, TV Pirveli, 1TV (Public Broadcaster), Formula, PosTV, and Rustavi2. Using cosine similarity metrics, the model maps the articles into a high-dimensional space. The cosine similarity metric then measures how closely the political content of one outlet aligns with others. A wider angle between vectors, or a smaller cosine similarity, indicates greater political dissimilarity between media outlets.
Clustering Media Outlets Based on Bias
One of the most important insights from the Index is the identification of media clusters. The Index not only measures political dissimilarity across all outlets but also identifies clusters of outlets with similar political biases. The politically biased dissimilarity is calculated by comparing the total dissimilarity with the average dissimilarity within these clusters. This helps the Index identify both the overall level of polarization and the specific biases between different media groups.
Application of the Media Polarization Index
The Georgia Media Polarization Index is an essential tool for analyzing political bias and dissimilarity across Georgian media outlets. It provides critical insights for researchers, policymakers, and media watchdogs who monitor how media bias and polarization evolve over time. The findings from the Index can guide policy decisions, support the push for more balanced media coverage, and encourage constructive dialogue on the media’s role in shaping political discourse in Georgia.
About ISET Policy Institute
ISET Policy Institute is the leading economic policy think tank in Georgia, specializing in research, training, and policy consultation in the South Caucasus region. The institute focuses on promoting good governance and fostering inclusive economic development. For more information, visit ISET Policy Institute.
To read more policy briefs published by the ISET Policy Institute, visit the Institute’s page on the FREE Network’s website.
Disclaimer: The opinions expressed in policy briefs, news posts, and other publications are those of the authors and do not necessarily reflect the views of the FREE Network and its research institutes.
KSE Institute: Further Weakening of Russian Macroeconomic Stability Will Require Additional Measures
The KSE Institute has recently released its March Russia Chartbook titled “Further Weakening of Russian Macroeconomic Stability Will Require Additional Measures.” The chartbook examines Russia’s current economic landscape, highlighting key trends and challenges. Notably, Russia’s foreign trade has stabilized at a new post-sanctions baseline, characterized by reduced exports and a notable recovery in imports. Meanwhile, on the fiscal front, escalating expenditures are contributing to an uptick in the budget deficit.
Why the Russian Economy Matters Now
Since 2022, Russia’s trade has settled into a smaller “new normal.” Exports hover near $100 billion per quarter while imports sit around $75 billion. As a result, the current account surplus in 2023 tumbled to $50 billion, down 79% from 2022. This weaker external backdrop keeps pressure on the ruble and forces tighter policy.
What the Study Set Out to Explain
The chartbook tracks how sanctions, oil-market enforcement, and wartime budgets are reshaping the Russian economy. It asks whether today’s growth is durable and what steps could further limit Russia’s ability to finance the war.
Key Research Findings
- The current account surplus shrank to $50 billion in 2023, from a record $238 billion in 2022.
- Oil sanctions bite unevenly: discounts widened again, and OFAC tanker designations sidelined much of the shadow fleet.
- The federal deficit reached 1.5 trillion rubles in January–February 2024, already 92% of the full-year plan; tax hikes worth ~4 trillion rubles are on the table.
- Half of the National Welfare Fund’s liquid assets are gone; hard-currency NWF assets have been depleted, leaving mainly yuan and gold.
Read the Full Report
To read the whole of KSE Institute’s latest Russia Chartbook, visit the presentation by Benjamin Hilgenstock, Senior Economist, Yuliia Pavytska, Manager of the Sanctions Programme, and Vira Ivanchuk, Research Analyst.
Meet the Researchers
- Benjamin Hilgenstock: KSE Institute, Senior Economist.
- Yuliia Pavytska: KSE Institute, Manager of the Sanctions Programme.
- Vira Ivanchuk: KSE Institute, Research Analyst.
Enhanced Access to Data Can Reduce the Gender Gap
On International Women’s Day, researchers from the FREE Network institutes released the policy brief “Closing the Gender Data Gap” to highlight the crucial role of data in addressing economic inequalities between women and men. The brief explores how improved data collection and access can help reduce the gender gap across labor markets, income, education, pensions, and caregiving responsibilities.
Why Better Data Matters for Gender Equality
In recent decades, progress in documenting historical developments and expanding access to new data sources has significantly improved our understanding of the different economic outcomes experienced by women and men. Today, researchers have deeper insights into:
- Labor market participation and outcomes
- Income levels and wealth accumulation
- Educational investments and pension systems
- Consumption and household decision-making
- Caregiving responsibilities and time use
These insights show that better data reduces the gender gap by revealing disparities and helping shape effective policy responses.
Key Findings
The policy brief emphasizes that to effectively design policies and strategies, data must be more accurate, comprehensive, and regularly updated. The researchers outline four critical recommendations:
- Increase access to digitized information – Governments and public institutions should make more administrative and statistical data available for research.
- Support funding for surveys – Combining survey data with administrative sources enhances both detail and reliability.
- Ensure regular data collection – Continuous monitoring allows researchers to measure the impact of major events such as legislation, conflicts, pandemics, or natural disasters.
- Leverage innovative data sources – Mobile apps, social media, and other digital platforms provide new perspectives on socio-economic trends and gender disparities.
About the Authors
The policy brief “Closing the Gender Data Gap” was authored by:
- Michal Myck (CenEA)
- Monika Oczkowska (CenEA)
- Pamela Campa (SITE)
- Maria Perrotta Berlin (SITE)
- Jesper Roine (SITE)
Media Contact
For press or media inquiries, please contact: Maria Perrotta Berlin, Professor at SITE, Phone: 0737332198, Email: Maria.Perrotta [at] hhs.se
FROGEE Survey on Gender Equality in Eastern Europe: Dataset
This dataset presents a broad set of indicators on gender inequality, based on the FROGEE Gender Equality in Eastern Europe survey. Researchers in the FREE Network, who have long been involved in the FROGEE collaboration, designed the survey and administered it in late 2021. It reached representative samples in eight countries of the network: Armenia, Belarus, Georgia, Latvia, Poland, Russia, Sweden, and Ukraine.
The survey covers many aspects of everyday life, including socio-economic conditions, demographics, material situations, family, and housing. In addition, it explores domestic and gender-based violence, focusing on respondents’ evaluations and perceptions rather than their personal experiences. Moreover, it investigates attitudes toward violence and harassment, perceived inequalities, and views on the current legal framework.
Data Policy
This page provides the dataset for scientific use. Researchers may freely use the data, whether unchanged or transformed, for academic purposes. However, they must attribute the source correctly, and they may not present their work in a way that suggests endorsement by the FREE Network.
The study collected its data through voluntary and confidential interviews. This process ensured that participants’ responses remained protected.
Suggested citation: FREE Network. (2024). FROGEE Gender Equality in Eastern Europe Survey Data [Data set]. Zenodo. https://doi.org/10.5281/zenodo.10777928
Explore the Dataset
Observing Experiences: Gender Bias and Treatment of Women in Daily Life
Witnessing Violence and Harassment Against Women in Everyday Situations
Attitudes Toward Gender-based Abuse
Disclaimer: Opinions expressed in policy briefs and other publications are those of the authors; they do not necessarily reflect those of the FREE Network and its research institutes.
Media Influence on Behavior During COVID-19: Insights from a Recent Study
In their paper, recently accepted by Health Economics, Marcel Garz from Jönköping University and Maiting Zhuang from the Stockholm Institute of Transition Economics (SITE) shed light on the impact of media coverage on individual behavior during the Covid-19 pandemic in Sweden.
Understanding Media Influence on Pandemic Behaviour
This paper explores the intricate relationship between media depictions of COVID-19 and shifts in individuals’ conduct, focusing on Sweden, a standout nation for not imposing lockdowns or curfews during the pandemic. Instead, Sweden relied on voluntary compliance with public health recommendations, making it a crucial case study in media influence on pandemic behaviour.
Researchers Marcel Garz and Maiting Zhuang analyzed Swedish newspaper articles about Covid-19 in 2020, totalling 200,000 articles. The study utilized mobility data from Google and employed a robust methodology, including municipality-day panel models and instrumental variable strategies, to ensure accurate results.
The research contributes to the empirical literature by identifying the causal impact of media coverage on individual behavior during a public health crisis.
Key Findings on Media Influence Pandemic Behaviour
The results unveil a significant correlation between media coverage and alterations in behavior patterns. Specifically, mentions of COVID-19 in the media correlated with reduced visits to workplaces and retail and recreation areas, while simultaneously extending the duration of stays in residential locations. Employing two distinct identification strategies, the researchers established a causal link between media coverage and behavioral changes.
Moreover, the study underscores that the impact of media coverage is most pronounced when news stories are locally relevant, visible, and based on facts. Articles referencing crisis managers and providing explicit public health advice were identified as having significant effects on behavior.
These findings carry broad implications for public communication strategies, emphasizing the pivotal role of local media in shaping individual responses to public health crises.
Full Research Paper Access
For a comprehensive understanding of the research background, methodology, data and variables, as well as the empirical strategy and conclusions, kindly refer to the complete paper on Health Economics.
The Political Economy of Environmental Policy | Call for Papers
The Stockholm Institute of Transition Economics (SITE) and the Forum for Research on Eastern Europe: Climate and Environment (FREECE) invites paper submissions to a one-day workshop session on the ‘Political Economy of Environmental Policy’ with a keynote lecture by Michaël Aklin (EPFL, Swiss Federal Institute) on 19th of April 2024 in Stockholm.
This event, hosted by FREECE together with SITE, will bring together leading academics and experts in the field to discuss and explore the complex relationship between politics, economics, and environmental policy.
The ‘Political Economy of Environmental Policy’ workshop aims to foster a dynamic exchange of ideas and insights among scholars, researchers, and practitioners. Participants will have the opportunity to engage in thought-provoking discussions, share their latest research findings, and explore innovative approaches to addressing the challenges of environmental policy in today’s rapidly changing world.
Keynote Speaker
Keynote address by Michaël Aklin, an Associate Professor from the EPFL, Swiss Federal Institute, and an expert in the political economy of environmental policy.
Workshop
Just like last year (The Economics of Sustainable Transport), the workshop will consist of two elements:
- a session with paper presentations, and
- keynote speeches from invited experts in the field.
The workshop will thus provide presentations of the latest research and guidance on the future of the field to economists interested in doing their own research on the topic.
Call for Papers
We would like to invite paper and extended abstract submissions, as well as expressions of interest in attending the workshop by 4 March 2024.
Important Dates and Submission Deadline
- 4th of March 2024 – Submission deadline (full papers or extended abstracts)
- 11th of March 2024 – Notification of acceptance
- 19th of April 2024 – FREECE Workshop session on the ‘Political Economy of Environmental Policy’
Please send your submission to: julius.andersson@hhs.se.
The workshop is organised as part of the FREECE initiative – the Forum for Research on Eastern Europe: Climate and Environment supported by the Swedish International Development Cooperation Agency (Sida).
Addressing the Impact of War on Human Capital and Higher Education in Ukraine
On February 6, 2024, the Stockholm Institute of Transition Economics (SITE) and the Friends of KSE initiative partnered with the Nordic Ukraine Forum to host an event, aiming to examine and bolster the vital cause of higher education in Ukraine.
During this occasion, the spotlight shifted to the crucial impact of war on human capital and higher education in Ukraine. Participants delved into the indispensable role of human capital in shaping Ukraine’s future, particularly in its pursuit of prosperity within the European Union.
A focal point was the Kyiv School of Economics (KSE), lauded for its pivotal role in educating Ukraine’s future leaders and providing essential policy analysis amidst the challenges of war. Alongside SITE and the Stockholm School of Economics (SSE), KSE highlighted initiatives supporting Ukrainian students and academics, emphasizing the necessity of investing in human potential.
Representatives from Swedfund and the Nordic Ukraine Forum stressed the importance of fostering collaborations and seizing opportunities in Ukraine. The event underscored the collective effort required to preserve and nurture Ukrainian human capital, crucial for successful post-war reconstruction.
Video Recording and Photos
Participants
- Tymofiy Mylovanov, President of the Kyiv School of Economics
- Nataliia Shapoval, Chairman of the Kyiv School of Economics Institute
- Alina Zubkovych, Head of Nordic Ukraine Forum and Visiting Professor from KSE
- Katarina Hägg, Chief Executive Officer of SSE Executive Education
- Anders Olofsgård, Deputy Director of SITE
- Stefan Falk, Director of Swedfund Project Accelerator
- Volodymyr Kykot, student representative from SSE
- Alina Kotliarova, student representative from SSE
- Lesia Rublevska, student representative from SSE
- Torbjörn Becker, Director at SITE
SITE’s Development Day Conference Showcases Strategies to Strengthen Sanctions on Russia
The Stockholm Institute of Transition Economics (SITE) hosted its highly anticipated annual Development Day conference at the Stockholm School of Economics on December 5. The event brought together experts, policymakers, and industry representatives to explore effective measures to reduce financing to the Russian war machine, contain the Russian economy, and support Ukraine’s reconstruction efforts, all while winning the information war.
Under the theme of “Taking Action for a Secure Future”, the conference featured a series of insightful presentations and engaging discussions. Attendees had the opportunity to gain valuable insights into the multifaceted challenges posed by Russia’s aggressive actions and explore innovative strategies to counter them.
“We are thrilled to have brought together such a diverse and knowledgeable group of individuals who are committed to addressing the complex issues surrounding Russian influence,” said Anders Olofsgård, Deputy Director of SITE. “Our annual Development Day conferences serve as platforms for sharing ideas, fostering collaboration, and ultimately working towards a more secure and stable world.”
The Ukrainian Government’s view
Vladyslav Vlasiuk, Sanctions Advisor to the Office of the President of Ukraine.
The Russia sanctions as a human rights instrument: Violations of export controls regarding war-critical goods to Russia
Aage Borchgrevink, Senior Advisor at The Norwegian Helsinki Committee. See and download the presentation here!
Reducing Russian government revenues
Petras Katinas, Centre for Research on Energy and Clean Air. See and download the presentation here!
Daniel Spiro, Associate Professor, Department of Economics, Uppsala University. See and download the presentation here!
Chloé Le Coq, Professor of Economics, University of Paris-Panthéon-Assas, Economics and Law Research Center (CRED). See and download the presentation here!
Yuliia Pavytska, Manager of the Sanctions Programme at KSE Institute. See and download the presentation here!
Reducing the Russian economic capacity
Benjamin Hilgenstock, Senior Economist at Kyiv School of Economics Institute. See and download the presentation here!
Eric Livny, Lead Regional Economist for Central Asia at EBRD. See and download the presentation here!
Michael Koch, Director at Swedish National Board of Trade. See and download the presentation here!
The Swedish Government’s Perspective
Håkan Jevrell, State Secretary to the Minister for International Development Cooperation and Foreign Trade.
Concluding remarks
Torbjörn Becker, Director of SITE, and Tymofiy Mylovanov, President of the Kyiv School of Economics.
Thank you
We would like to thank everyone who participated during this year’s SITE Development Day conference “How to undermine the Russian war effort and support Ukraine” on December 5th, 2023, at the Stockholm School of Economics. We hope to see you all again in the next Development Day conference.