ABSTRACT
This chapter discusses the regional differentiation underlying the structural transformation of CEE economies. It is argued that restructuring is embedded within worldwide rescaling processes which privilege metropolitan areas and exacerbate centre–periphery relationships. In CEE, the same processes are underpinned by the strong concentration of competitive services in large cities. Provincial regions are characterised by a more even sectoral mix, while peripheries are often experiencing a hollowing-out of the space economy brought about by destructive forms of de-industrialisation. Regional policy should therefore employ differentiated strategies when dealing with economic space, and strive to encourage the building of strongly integrated spatial networks.
