Varieties of Capitalism in Post-Socialist Countries

The former state socialist countries of Eastern Europe and the Soviet Union have been transformed into capitalist systems, albeit with substantial differences among them and from advanced capitalist systems elsewhere. The value of an institutional approach has gained recognition as neoclassical economics proved a poor guide to forms of economic development and performance. Defining these capitalisms has followed three broad routes. One follows Polanyi, embedding them in social and political development without showing links to economic performance. A second follows Hall and Soskice’s two varieties of capitalism, but this fits poorly with countries in the process of creating institutional forms. Adaptations include suggestions for new varieties. Countries of the former Soviet Union prove particularly difficult to fit into existing classifications. A third approach starts from forms of international integration and seeks institutional preconditions rather than determinants. Institutions then appear as one factor, albeit an important one, determining economic performance.