The power of path dependence? State capacity and autonomy in East Central Europe during transition

Abstract

The paper examines development of state capacities and autonomy in East Central Europe during transition, and attempts to establish a relation between state characteristics and trajectories of economic transformation, especially with regard to privatisation and FDI. The assertion is that the quality of state capacities and the degree of state autonomy, although changing over time, mutually reinforces the formulating of economic policies, and hence in structural transformation. Thus, state characteristics are important determinants of transition outcome, but are themselves affected by structural economic changes.