ABSTRACT
This chapter aims to provide order in the numerous actors and factors determining the variety of industrial development paths in Central and Eastern Europe after the collapse of communism. In Poland industry emerged from socialism more competitive than Ukrainian industry. The chapter argues that socio-economic dynamics in post-socialist Poland and Ukraine are qualitatively different, mainly due to the different institutional and historical legacies of both countries. It is conspicuous that the economic gap between Western Europe and the former communist bloc countries has become much greater than it was in pre-socialist times. The cases of Poland and Ukraine show that the pre-socialist past, mainly reflected in informal institutional arrangements, shapes to a considerable extent present industrial development paths. Poland has had the experience of market-oriented reforms under socialism that taught Polish leaders about the limits of reform of centrally planned economy. In Poland, a powerful coalition across the political spectrum developed which supported market-oriented reforms.
