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The two transitions in Central and Eastern Europe and the relation between path dependent and politically implemented institutional change
Die zwei Transformationen in Mittel- und Osteuropa und das Verhältnis zwischen pfadabhängigem und politisch implementiertem institutionellen Wandel
[research report]
Corporate Editor
Walter Eucken Institut e.V.
Abstract "The increasing gap between the formerly socialist countries of Central and Eastern Europe (CE & EE)
with regard to both their economic and political performance cannot be explained by their different starting
conditions after the breakdown of the Soviet Union alone. Rather, it is due to cultural ... view more
"The increasing gap between the formerly socialist countries of Central and Eastern Europe (CE & EE)
with regard to both their economic and political performance cannot be explained by their different starting
conditions after the breakdown of the Soviet Union alone. Rather, it is due to cultural and historical
circumstances that shape the particular tradition and societal environment. Taking a cultural approach and
referring to the newer literature on the transfer of institutions, we try to improve the understanding of the
interrelation between formal and informal institutions. Our central thesis is that the ‘reaction rate’ of
informal institutions depends on their compatibility with imported formal institutions. The transition
processes in CE & EE can tell us much about the relation between path dependent and politically implemented
institutional change. During the 20th century the countries of CE & EE twice went through rapid
institutional change: For centuries they had acculturated to Western Europe, but as a result of the October
Revolution ‘Eastern’ patterns were imposed upon them. Since the breakdown of the SU in the late 1980s
they have ‚returned to Europe‘ by (re-)establishing democracy and capitalism. In our opinion, to understand
the differences in performance between the transition countries, it is necessary to interpret both
transitions as processes of institutional transplantation and ask how the informal institutional settings in
the different countries interacted with the imported formal institutions." [author's abstract]... view less
Keywords
transformation; Central Europe; Eastern Europe; social factors; cultural factors; institutional change; Europe; path dependence; transition
Classification
Economic Policy
Macrosociology, Analysis of Whole Societies
Basic Research, General Concepts and History of Political Science
Document language
English
Publication Year
2005
City
Freiburg im Breisgau
Page/Pages
40 p.
Series
Freiburger Diskussionspapiere zur Ordnungsökonomik, 05/3
ISSN
1437-1510
Status
Published Version; reviewed
Licence
Deposit Licence - No Redistribution, No Modifications
Data providerThis metadata entry was indexed by the Special Subject Collection Social Sciences, USB Cologne