ABSTRACT

The development and characteristics of capitalism in Central and Eastern Europe (CEE) after 1989 show some of the limitations of the varieties of capitalism (VoC) theoretical framework which mainly distinguishes between liberal market economies (LME) and coordinated market economies (CME). The context varies strikingly from that of western market economies, not only by the relative immaturity of the market systems in each country but also by the way they were established. The post-socialist transformation consists of three simultaneous developments that continue to shape the new market economies up to today: the creation of democracies after a period of one-party communist power monopoly; the radical shift to a market-based economic and ownership model without a capitalist class; and the demarcation of state borders and consolidation of states in the countries of the former Yugoslavia, Czechoslovakia and Soviet Union (Offe 1996).