Central and Eastern Europe a Decade After the Fall of State-socialism: Regional Dimensions of Transition Processes

Following the collapse of state-socialism a decade ago, Central and Eastern European countries (CEECs) opted for democracy and market economy. There was a widespread belief that transition to a market economy via neo-liberal 'shock therapy' would lead to a quick closure of the wealth gap with the West. A decade later, however, neo-liberal expectations of convergence under market conditions never materialized. Instead, 'New Europe' has been experiencing fragmentation and growing disparity between 'West' and 'East' and also within the 'East' itself. In examining regional patterns, and building on the strengths of institutional and 'radical' approaches, this article challenges neo-liberal accounts of uneven development in Eastern Europe. It argues that diverging economic trajectories should be understood in the light of the structural legacies of both the state-socialist and pre-socialist past and the way these are exposed to, and interact with, international political economy.