Electronic Library of Scientific Literature


Volume 48 / No. 5 / 2000




Vladimír BALÁŽ

There are several distinctive types of national financial systems. The Anglo-Saxon one is based on direct access by enterprises to the capital markets, e.g. via bond and share issues. The role of the commercial banks, on the other hand, is of minor importance. The commercial and investment banking were separated since the Glass-Steagal Act entered into the force. In Germany, universal banks provide enterprises with most of the capital, while the capital markets are less important. In Japan, the so called keiretsu system is based on the cross-ownership relations between the main bank and affiliated enterprises. The main bank also provides most of the operative and development capital.

Significant differences are also in patterns of enterprise financing and corporate governance in general and financing innovation in particular.

1. Venture capital financing is typical for small and fast growing firms. Sometimes, manager and owner is the same person, sometimes, finance is provided by external venture capitalist. This kind of investment is typical for high revenue/risk ratio and is highly illiquid.

2. Mandatory investments. In this case, capital is provided from external sources, while the enterprise management is done by professional managers. There are two sub-types of the mandatory investments:

3. The debt financing is done from external sources, either via the (a) bond issues or (b) loans. The former form of the investment is more liquid than the other one.

In developed market economies, each form of the enterprise and innovation financing can be found. In general, the 1, 2 and 3a types are more common in the Anglo-Saxon economies, while the 3b type in the continental Europe and Japan. The globalisation period, however, provided for an enormous growth in the enterprise bond issues (the 3a type).

Globalisation period brought several major trends on the world and national financial markets, as for example securitisation, internationalisation, round-the-globe trading on capital markets, cross-border issues, electronic trading and settlement, and, finally, integration of the national financial markets and introduction of the global financial standards. These processes promoted global capital flows, as fund raising, allocation and redistribution. Another distinctive trends were disappearing borders between the particular types of the financial institutions (banks, securities companies and insurances). Multifinancial companies became major players on international capital markets and also major providers of capital for innovation financing.

Globalisation and integration of the national financial markets, however, provided for convergence in international profit rates. Major institutional investors started to look for alternative sources of the above-average profits. Innovation finance seems to be one of the most promising sources.

While there was a convergence in national and international profit rates (e. g. interest rates from sovereign bonds), national financial systems preserved many particular features. National financial systems are closely related to systems of corporate governance and ownership patterns in financial institutions. These structures are relatively rigid and account for slow changes only. If there was any convergence in national financial systems, it was expressed more in convergence in financial indicators than in structural patterns.

The second part of the paper deals with analysis of potential convergence in national financial systems and national patterns of financing innovation. The author used the OECD database on the financial indicators of the non-financial enterprises in ten OECD member countries in period 1990–1995. Indicators as share of own funds in total funds, share of own investment sources in total investment sources, share of gross profits in total assets, share of BERD in GDP and share of BERD in GERD was computed and a correlation coefficient matrix constructed. Most coefficients were low. It confirmed assumption that particular countries maintained their own patterns of innovation financing in enterprise sector.

The last part of the paper analyses patterns of venture and risk capital innovation financing in particular countries. Pension and mutual funds were major providers of capital for fast-growing, innovation-oriented firms in the USA. Most of the capital concentrated in the start-up phase of innovation process. The USA also account for major share of the 1 and 2a type of innovation financing. In the EU, on the other hand, most of the capital was provided by the banks and concentrated in expansion phase. It indicates more cautious approach to innovation financing in the EU countries by private sector.

Except for the enterprise sector, much of the innovation finance is provided by the public sector in the EU, both via the national R & D programs and the EU-wide programs (e. g. Framework 5). These programs are targeted both on the basic and the applied research. Efficiency of the EU innovation systems, however, seemed to be lower than in the USA. Most of the world high-tech leaders were established in the USA (Microsoft, Genetech, Sun Microsystems, Apple Computer, etc.). Except for the national innovation policies, there are other factors, which are of major importance for the innovation development. Liberal tax environment, low bureaucracy, efficient capital markets and high mobility of skilled labour force – these factors create a general innovation – promoting framework, which seem operate better in the USA than in the EU.




Government’s main aim in foreign trade and investment flow control is to support the economic growth. In spite of occasionally questionable results, trade and investment barriers against the entry into the domestic market represent one of the most applied methods. The influence of various barrier forms is in the short-term horizon evident mainly by the cost increase on consumer side, in the long-term various barrier forms lead towards the general decrease of the volume of imports, and comparative advantages are weakened.

During recent four decades World Trade Organisation (WTO) has reached remarkable results in the liberalisation of trade tariffs through tariff barrier disengagement, by non-tariff barriers, however, not much success has been reached. This is manifested, in addition to other factors, by the fact that international trade liberalisation and its aim among the three main economic blocks – USA, Japan and the EU, reached the multilateral agreement level.

The calculation method describing how tariff and non-tariff barriers influence the international trade exchange remains, however, a problem. These barriers are transparent and unequivocal at some items, whereas at other items non-transparency and ambiguity might be the case. At such items the calculation could be considerably subjective and more strenuously provable.

Custom tariff structure of a country can be characterised by various means. One of the most sophisticated means is the OECD method, which contains the following 11 indicators:

For comprehensive expression of non-tariff trade barriers (NTB) following indicators are currently used:

– Index of imports coverage, which is the percentage share of country’s inherent import affected by non-tariff trade. This is evaluated from the actual volume of bilateral trade flow between various exporters and country’s imports.
– Imports frequency (F), which is a percentage share of custom tariffs as a result of the utilisation of NTB or their group, no matter whether the relevant commodity or product are really imported or not.

Database UNCTAD documents that the new OECD system of indices of trade barrier indicators can be sufficiently sensitive to evaluate differences in the influence of GATT’s Uruguay Round among groupings of NAFTA countries, EU and Japan. We verified that by the analysis of these groupings for the years 1988, 1993 and 1996 for commodity structure in two-digit ISIC classification. By the analysis of correlation coefficients of monitored variables one can see that from the point of view of the total production among the EU countries, Japan, Canada and the USA significant statistic coincidence in the average tariff load of imports exists. This is proved by the fact that by comparing the years 1993 and 1996, the correlation coefficient for all measurements (with the exception of the group of intermediate products) exceeds statistically significant criterion, in most cases reaching the value of 0.9.

In the trade policy of individual countries, or their groups, however, differences exist at certain commodities:

From the point of view of our problem the following finding is important: In the group of countries monitored by us there is an insignificant value of correlation relations in tariff rates allocation for the group of intermediate products, where in the years 1993–1996 correlation coefficient R equalled 0.135 and in the years 1988–1996 this coefficient reached the value of 0.098. This documents that a turn in imposing import tariffs occurred in this period in such a way, that their trend in trading with this commodity group developed in different modes.




1. Classification of Exchange Rate Regimes within the Framework of International Monetary Fund

Classification of currency exchange regimes was unnecessary during Bretton-Wood monetary system existence, as member countries implemented the policy of fixed currency exchange rates. In the seventies, however, one started to use a relatively large number of exchange rate regime variations, and thus it was necessary to start classifying exchange rate regimes used by IMF member countries. The classification of exchange rate regimes was published in 1975 for the first time, and exchange rate regimes were allocated into several groups by the degree of currency exchange rate elasticity. This classification was used practically without any change for 14 years. Categories used in this classification follow:

Original classification of currency exchange regimes was adequate during the seventies and eighties. In the course of time one felt more and more clearly many of its insufficiencies. New classification allocates individual exchange rate regimes into categories by the elasticity degrees of currency exchange rates. Exchange rate regimes were allocated by the new classification into the following 8 categories: exchange rate regimes without local currency, currency boards, other current regimes of fixed currency exchange rates, currency exchange rates with linkage and fluctuation margin, crawling pegs, currency exchange rates with central parity regularly adjusted and with fluctuation margin, managed floating without any definition of a future currency exchange rate development, and independent floating.

2. Floating Currency Exchange Rates and Their Effect

Each country that implements floating exchange rate policy must reckon with the mobility of its currency exchange rate. One can put a basic question in this context: whether the implementation of an elastic category in the exchange rate regime has a destabilising effect on country’s economy. Practically, it is important to distinguish between short term fluctuations, which appear sporadically day to day, and long term fluctuations, which sometimes last even some years. In is generally accepted that short term fluctuations of currency exchange rates can indeed provoke concern in population of the relevant country, but from the economic development point of view they are usually less important. Much more important, however, are vast fluctuations in nominal and real currency exchange rates lasting some years. Economic theory pays a great attention to currency exchange rate fluctuations and tries to clarify reasons of their origin. Long term fluctuations of currency exchange rate of a relevant currency can be caused by various reasons such as irrational speculations in capital markets, expectations of a future currency exchange rate development, uncertainty caused by a non transparent monetary policy, expectations relating to future monetary policy, as well as real economic shocks. From the above listed follow that changes in the implementation of fiscal and monetary policy can cause significant changes in currency exchange rates. Since the seventies up to the present many various monetary changes, or unexpected fluctuations in currency exchange rates have taken place. Many of those appeared to be a national problem of the country in question, there appeared, however, extensive monetary crises of international impact. Typical examples of long term fluctuations of currency exchange rates is the USD exchange rate fluctuation during the eighties, and the monetary crisis of the European monetary system in the years 1992–1993.

Although the views of authorities in this respect differ, one still accepts the opinion that a correct application of exchange rate policy of floating currency exchange rates does not influence in a destabilising way the economy of the country in question. In this connection, however, one should not forget that exchange rate policy should be tailor-made for each country. Some countries achieve considerable success with floating, the other, however, with fixed currency exchange rates.

3. Fixed Versus Floating Currency Exchange Rates

Most of the distinguished economists agree that the selection of right exchange rate regime is very important for economic stability and economic growth of individual countries. Some authorities tried to evaluate from the macro-economy point of view the influence of appliance either fixed or elastic exchange rate regimes on economy development; at that they arrived at a striking conclusion, which is confirmed by practical experience of individual countries. According to this conclusion, from the point of view of macro-economic development of a country, one can prefer none of the exchange rate regimes, and one cannot say that one exchange rate regime is better than the other one. Decision making between fixed and more elastic exchange rate regimes often means to take choice between reliability and flexibility. Some authorities maintain that the implementation of a fixed exchange rate regime, which in fact casts a currency anchor for economy, can provide a programme aimed at inflation reduction more trustworthiness. If central bank uses fixed exchange rate regime, monetary policy is subordinated to the demand of maintaining fixed level of local currency exchange rate. The aim of maintaining fixed currency exchange rate must be accompanied by further elements of economic policy, including fiscal policy, which is very important. This means that politicians are substantially tied down by this situation. The country that tries to maintain fixed exchange rate regime cannot infinitely continue borrowing in the bond market, as this could influence interest rate level, and thus the value of local currency exchange rate could get under pressure.

As long as the fixed currency exchange regime is trustworthy, e. g. as long as market believes that this fixed regime can and will be maintained, inflationary expectations, which one considers to be the main reason for the chronic inflation origin, will remain at satisfactory level. From this follows that at the implementation of fixed currency exchange regime a risk exists, that fixed exchange rate cannot be successfully maintained when market loses confidence in either ability or will of relevant institution to retain set currency exchange rate.

Flexible exchange rate regime offers its implementers more space for manoeuvring. For instance at the implementation of elastic exchange rate regime one can allow to grow the inflation rate, which is considered to be an indirect method of tax revenue increase. It is, however, most probable that at such situation one could relatively hardly get confidence of the market in policy aimed at inflation control, and it can happen that inflationary expectations can become self fulfilled.




This article presents the methodology of panel data analysis and applies it analyzing profits/losses resulting from financial operations in various branches in Slovak economy.

Panel data is characterized by two dimensions for every variable. One of them is time (corresponding index t is going from 1 to T) and the other one are entities (index j is going from 1 to N). Like in conventional regression analysis, we wish to explain the dependent variable (regressand) with K independent variables (regressors; index i is going from 1 to K), first of them being the constant term. The data matrices can be split into smaller groups, we are going to split the data in T groups, where every group contents observations from different entities and fixed time (in a group, index t is fixed).

The simplest estimator in this setup is the OLS estimator. It is a K x 1 vector $ . It is obtained by simply pooling all groups together into NK x 1 vectors and applying the conventional ordinary least squares method. It corresponds to the hypothesis, that there are no significant differences between groups – if this does not hold, OLS estimator will be biased.

One can segregate the first independent variable, the summation vector corresponding to the constant term, into T dummies, with every dummy corresponding to one group. By doing so, the constant term is allowed to vary across the groups – the resulting LSDV estimator consists of T estimates of the constant term (for every group a different estimate) and (K – 1) H 1 vector $ corresponding to other regressors. This estimator is likely to be less efficient, because it uses only a fraction of the information contained in the data.

The disadvantages of above estimators led to construction of random effects estimator. It assumes that the parameters themselves are random variables and leads to an estimator in similar form as LSDV estimator, but the estimates of constant term are nearer to the constant from OLS estimator. Some efficiency should be gained.

In general, not only constant terms vary across the groups; one can let all parameter vary. In this case, the independent variables are arranged into a block-diagonal matrix. The parameter vector has dimension TK x 1 and consists of T sections at K parameters each. This is the most general approach, but it is the least efficient one. To increase its efficiency one can use restrictions imposing equality of parameters across different groups. In the limiting case, if all parameters are constant between groups, we arrive at the simple OLS estimator (its values are repeated in every group). To test these restrictions one usually has to transform the model to a homeskedatstic one, as heteroskedasticity is usually present and use a F-test for linear restrictions. We prefer gradually adding and testing equality constraints to construction of random-effects estimator, because the hypothesis is clearer and it is a data-driven approach.

In our application, we used data from Bank Clearing Center in the form of branch aggregates of some balance sheet and income sheet for years 1994– 1997. The graphic analysis revealed a negative correlation between profits/loss form financial operations and EBIT. As the behaviour of enterprises can vary across primary, secondary and tertiary sector, we spliced the big groups further into sectors for some variables.

We used the panel data methodology to explain profits/loss from financial operations with excess debt (difference between liabilities and claims), financial assets, bank loans and EBIT. All variables are divided with total revenues in order to adjust to branch size. We proceed with construction of the estimator with block-diagonal matrix of regressors and made it more parsimonious by restrictions across years and sectors.

The most regular impact on the dependent variable exercise bank loans. Their impact culminated in 1994 (0.35 SKK on 1 SKK principal) and decreased in time. In some sectors, the average payments fell even under average interest rate, indecating cumulation of bad debts in banks.

The impact of EBIT was smaller in 1994 (parameter value 0.08), but it increased over time. According to scatter graph, in secondary sector it should be higher, but after other explanatory variables were added, it was not. In general, however, the results support the hypothesis, that enterprises tend to “smuggle” profits via financial operations in other subjects.

Excess debt (not paying one’s suppliers) is in our conditions much cheaper than loans (0.02 to 0.12 SKK for 1 SKK debt) and in some sectors, it is even positive, indicating that these enterprises shift their problems to their suppliers.

According to our analysis, return on financial assets are in all periods except 1994 higher in primary and secondary sectors than in the tertiary sector. The return in primary and secondary sectors approaches lower values in 1994 and 1996, slightly higher values in 1995 and 1997. The difference between them and terciary sector culminates in 1996, when the tertiary sector suffers even loss. Thus, we can conclude, that the main determinant of profits or loss from financial operations were bank loans and in primary and secondary sectors in years 1995 and 1997 also financial assets. The relation between of profits or loss from financial operations and EBIT was established, but it was quite weak, the same can be said also about excess debt.



Lucius CHUDÝ – Igor FARKAŠ

One of the important issues of the Public administration reform strategy proposal in the Slovak Republic is the new concept of management of the incoming and outcoming financial flows within the regions. The goal of the strategy has been to set up a natural and automatic scheme for the management of these flows in order to provide a sufficient positive feedback for regions, thus stimulating their further development. On one hand, it is clear that such a strategy reinforces all regions which have at least a minimum potential for economic growth. On the other hand, however, it might deepen the gap between the strong regions and those lacking this potential. Therefore, the strategy of horizontal regional financial equalization (HRFE) has been motivated by an effort to optimally balance a motivation-solidarity trade-off for every region. This means incorporating a solidarity towards weak regions in order to enable them to perform their legal functions; however, not at the expense of considerable decrease of motivation for strong regions.

In this paper, we propose two models of the horizontal regional equalization process. The scheme is based on the preliminary concept of MESA 10, in which the starting point for equalization is given by so called regions' tax strengths (RTS) defined as a sum of local taxes collected in particular region during a certain period (e. g. a year). Their model consists of the three successive phases. In the first phase, the so called Horizontal Regional Equalization Fund (HREF) is created as a predefined fraction of RTS taken from all regions. In the second phase, a part of HREF is redistributed to all regions proportionally to their populations. In the third, equalization phase, the rest of HREF is redistributed to regions according to the defined criterion.

Our proposed mathematical models focus on the third phase and differ in specification of the motivation-solidarity trade-off. However, what they have in common are the three featres: (1) the preservation of mutual order of all regions (monotonicity condition) in terms of their RTS before and after the third phase of the equalization, (2) the rate of equalization can be adjusted and controlled in order to meet minimum regional budgets necessary for providing all basic legal functions, and (3) the whole volume of HREF is redistributed without remainder.

The first model is called “local”, due to the fact that the equalization applies only to regions whose RTS was below an average RTS before equalization. The portion of HREF which is redistributed to a particular below average region is proportional to the difference between its TS and the average RTS. The second model is called “global”, because the redistribution of RHEF applies to all regions except the strongest one. This model was derived based on the condition that the defined relative RTS of all regions be changed equally, which was not the case of the local model.

Due to the inaccessibility of all relevant regional tax data we present computer simulations of the proposed models using randomly generated and ordered data representing RTS. As a consequence, we also omit the second phase from the equalization process which now becomes irrelevant. However, this simplification does not decrease the validity of the models; it only allows us to directly apply the third phase without the necessity to re-order the RTS which would otherwise be needed due to population-based redistribution of HREF portion.

For both models, we illustrate the qualitative analysis with respect to involved parameters. We also provide an analytical derivation of characteristic parameters such as the maximum portion of RTS which can be taken from all regions and would still allow the complete final redistribution of HREF without violating the monotonicity condition mentioned above. Comparison of both models agrees with intuitive expectation that this limit is considerably higher (more than three times) in case of the global model for the simulated data.

Finally, we discuss possible directions of further research which could be performed on real regional tax data. In such a case, it would allow us to map the RTS of Slovak regions during the selected periods of time. It would also be possible (at least theoretically) to compare the financial situation of regions after redistribution of HREF with real expenditures in these regions. Last but not least, we could investigate the influence of weighting individual contributing taxes in RTS calculations, as well as an influence of various parameters for optimization of the overall, three-phase HRE process.



Ladislav BORS

Slovenská republika patrí medzi štáty s otvorenou ekonomikou. Podiel obratu zahraničného obchodu na nominálnom hrubom domácom produkte po sústavnom raste od roku 1993 (98 %) v roku 1998 dosiahol svoje maximum 117 %. Po postupnom znížení dovoznej prirážky až na nulovú sadzbu v treťom štvrťroku 1998 a pri pretrvávajúcom vysokom domácom dopyte, neadekvátnej reálnej výkonnosti ekonomiky, na konci roka zahraničný obchod SR vykazoval deficit 82,9 mld Sk. Vo vyjadrení ako podielu na nominálnom HDP to predstavovalo 11,6 %. Podľa tohto ukazovateľa Slovensko jednoznačne zaujalo dominantnú pozíciu v skupine štátov CEFTA. Prehĺbenie vonkajšej, ale aj vnútornej ekonomickej nerovnováhy vytvorilo podmienky na vypuknutie finančnej krízy.

Po prechode NBS na plávajúci kurz v októbri 1998, v prvom štvrťroku 1999 sa tento nepriaznivý vývoj zastavil. Po medziročnej stagnácii dovozu a “nepresvedčivom” raste vývozu o 4,7 % v bežných cenách v druhom kvartáli dovoz vzrástol medziročne len o 3,3 % kým vývoz dosiahol 13,3 % rast, čím predbehol svoju minuloročnú expanziu. Taký priaznivý vývoj ostal charakteristický aj pre ďalšie obdobie. Čo spôsobilo ten priaznivý obrat? Vývoj výmenného kurzu koruny, ktorý sa ani nespamätal z prechodu z fixného kurzového režimu na plávajúci kurzový režim a už v máji zažil svoj ďalší pád? Ozdravné opatrenia vlády, ktoré majú za cieľ odstrániť deformácie z ekonomiky, ale v konečnom dôsledku spôsobili pokles domáceho dopytu, alebo vplyv vonkajšieho prostredia? Je to výsledkom spolupôsobenia viacerých faktorov. V práci sme sa venovali identifikácii týchto faktorov a prípadnej kvalifikácii ich vplyvu na vývoj zahraničného obchodu.




Economic processes were until now primarily studied as static or dynamic systems by means of mathematic equations. Rationality of economic agents and the resulting global intelligence of markets are economic phenomena that catch our interest along with traditional microeconomic and macroeconomic research. Theoretical and experimental artificial intelligence inspires multi-agent paradigm of economic studies. In this contribution we consider an artificial economy from a point of view of formal grammars. We propose a lowest-level artificial economy as a sequential colony. We describe several properties of such an economy (called PASTE) and show that rationality of its organization is an emergent effect of interractions of economic agents with their environment only.




Michael Baluďanský was born at September 26, 1769 in Vyšná Olšava, in East Slovakia, now in the district Svidník, in a Ruthenian family. His father was a Greek-catholic priest in this Ruthenian village. Later he became parish priest in Veľaty (district Trebišov).

He received elementary education in his native village. Afterwards he was student at the gymnasium of Sátoraljaújhely. As excellent and diligent youngster he continued to study at the gymnasium in Košice. Finishing it in 1782 he became student at the Royal Academy in this town. In 1785 having finished philosophy as preparatory course, in 1785 he concluded, in the age of eighteen, his studies of law. As distinguished student he received scholarship at the faculty of law on Vienna University for two years. It was special two-years preparatory course for political and cameral sciences teachers on the university and royal academies of historical Hungary, organised and controlled by Joseph Sonnenfels.

As student of political and cameral sciences he got acquaintance with theories of Adam Smith and learned foreign languages, as English, French and Italian. In the same time he perfectionated his knowledge of German.

The end of his study in Vienna was allied with an important event, the opening of new faculty of law in Oradea (Grosswardein, Nagyvárad, Varadín), now in Romania. Oradea was the fifth royal academy of historical Hungary. This Academy had previously only a faculty of philosophy. For the new faculty professors were selected by competitive examinations. A place for professor of political and cameral sciences, with obligation to teach “official stylistic”(stilus curialis) in addition, was established. The first examination for this position came to pass without participation of Baluďanský. An other competition was initialised directly by Sonnenfels, which was successful for Baluďanský. He was appointed in 1788 as professor of “political sciences and official stylistics”.

Political and cameral sciences, or in short form “political sciences” in that time were composed by: 1. policy, dealing with problems of state’s governance and social policy, 2. business (commercium), dealing with public economy, and 3. finance, equal to public finance.

The story of Baluďanský´s life and work in Oradea reveals important features of that time instruction of economy and the life of professors in the historical Hungary

Both necessity and possibility of publication were very restricted. For teachers of academies and universities the degree of doctor was indispensable. For that reason a given thesis had to be elaborated and defended, in addition to it a short dissertation had to be published. Baluďanský defended his degree of doctor in law elaborating theses from policy, economy and finance and writing a Latin dissertation De promptuariis (About stock-piling), concerning safety stocks of grain and a system of warehouses for their storage.

Baluďanský was as professor successful. In 1802 he was elected as dean of the faculty. On the other side he did not win competitions for place of professor in Bratislava, and had no chance to become professor of political sciences at the University of Pest.

A dramatically event for his further life was the invitation for the place of professor in Russia, received in 1801. In the 18. and 19. century several professors and scientists were invited to Russia. Among them well known persons, as Daniel Bernoulli or Christian Schlözer worked in Russia for some years. Others, originated from Germany and other countries, remained there for rest of their life. Nevertheless, the majority of them wrote in German, French or Latin. Different was the case of Baluďanský, who had spoken Russian (or a similar language) and so in a short time he was able to speak and write in this language.

Baluďanský was appointed to professor of the pedagogical institute in Sankt Petersburg in 1804, teaching political economy and commercial law. in the same time he was appointed to the position of governmental officer engaged in legislative’ s commissions performance. On the whole, in Russia he was more engaged as jurist than an economist.

In 1806 and 1808 he published two Russian articles [5] and [6] concerning Russian economy, not associated with his accomplishment at home.

In Russia Baluďansky joined schoolmates from Košice. The most important, Peter Lody (1764– 1829) was born in the village Zboj (now district Snina), studied law at Košice. He was professor of philosophy and law. After teaching in Cracow transferred to Russia and in 1803 became professor on the same Academy in Sankt Petersburg as Baluďanský.

In 1819 the Pedagogical institute Sankt Petersburg was transformed to university with three faculties. The deans of these faculties elected M. Baluďanský for the first rector in the history of Sankt Petersburg University. P. Lody became the first dean of Faculty of Law.

After these successes Baluďanský’s position at the university changed very soon. The activities of himself, as that of his collaborators, were criticised as too liberal. In 1821 he was dismissed as rector. In 1824 he left the university Several his collaborators had to leave the university too. The real reason of these changes was a new reactionary and conservativeregime.

These events did not mean the end of his carrier as jurist. So he participated on editing and publishing the Collection of Laws, issued in 1835. he took part on organisation of jurists education. Baluďanský died in 1847 in Sankt Petersburg.

The life and achievement of M. Baluďanský concentrated attention as early as the middle of 19th century. He is mentioned in Austria in 1856 [30], in Bohemia in 1890 [18]. His Russian biography [7] is from 1882. The most comprehensive book on his life and labour is in Hungarian [27].

The biography of M. Baluďanský is a story of a man, who, following Andy Warhol, could be the best known representative of his ethnic in the world.