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The Significance of Borders in the East European Transition

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  • Claire Wallace
  • Oksana Shmulyar
  • Vasil Bedsir

Abstract

The growth of small‐scale trading in Central Europe is fostered by the uneven development among post‐communist countries. This has encouraged small‐scale informal traders to cross the borders between these countries in order to buy and sell goods to supplement their incomes. This paper is based upon a study of these traders, involving qualitative interviews with 129 traders and observation of markets in Poland, Hungary, the Czech Republic and Slovakia. The paper argues that in a risky environment, where trading is either illegal or only semi legal, small‐scale traders try to minimize risk by building up different kinds of relationships with customers, representatives of the law and partners in trade. In the absence or inadequacy of formal institutional regulation, informal regulation through social capital becomes important. The paper considers the way in which social capital is created and cemented in these conditions through family, ethnic and social ties which can be ‘strong’ or ‘weak’ in character. La croissance du commerce de petite échelle en Europe centrale est favorisé par le développement inégal entre les pays post‐communistes. Ceci a encouragé les petits commerçants illegaux à traverser les frontières entre ces pays pour acheter et vendre des biens afin d’augmenter leurs revenus. Cet article s’appuie sur une étude de ces commerçants qui comprend des entretiens qualitatifs avec 129 commerçants et l’observation de marchés en Pologne, en Hongrie, dans la République Tchèque et en Slovaquie. Dans un environnement hasardeux où le commerce est soit illégal soit semi‐légal les petits commerçants essaient de réduire les risques en construisant des relations diverses avec les consommateurs, les représentants de la loi et les partenaires commerciaux. La réglementation en dehors des statuts par le capital social devient importante à cause de l’absence ou de l’imperfection des institutions formelles de rtéglementation. Cet article montre comment le capital social est cr éé et cimenté dans ces conditions à travers les liens familiaux, ethniques et sociaux qui peuvent avoir un caractère ‘fort’ ou ‘faible’.

Suggested Citation

  • Claire Wallace & Oksana Shmulyar & Vasil Bedsir, 1999. "The Significance of Borders in the East European Transition," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(4), pages 738-750, December.
  • Handle: RePEc:bla:ijurrs:v:23:y:1999:i:4:p:738-750
    DOI: 10.1111/1468-2427.00226
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    Cited by:

    1. Hall, Derek, 2010. "Transport geography and new European realities: a critique," Journal of Transport Geography, Elsevier, vol. 18(1), pages 1-13.
    2. Allan Williams & Vladimir Balaz & Bernadina Bodnarova, 2001. "Border Regions and Trans-border Mobility: Slovakia in Economic Transition," Regional Studies, Taylor & Francis Journals, vol. 35(9), pages 831-846.

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