ABSTRACT
The topic of this chapter is deeply influenced by the complicated web of transition policies in Central and Eastern Europe. We focus on East Central Europe (ECE), but more precisely on the Visegrád countries (Poland, Czechia, Slovakia, Slovenia, and Hungary). However, occasionally we compare some aspects of transition with those of (western) Balkan countries or with patterns in countries that emerged from the former Soviet Union (fSU). Many scholars from the varieties of capitalism (VoC) literature state that Central European capitalist development is markedly different, especially from the model in the Commonwealth of Independent States (CIS) countries (Lane 2007; Csaba 2007; Szanyi 2012; Bohle and Greskovits 2007; Bohle and Greskovits 2013). Nölke and Vliegenhart (2009) began their work with a positive description of the Central European capitalist model and highlighted positive and negative features of multinational companies’ strong influence, a kind of new dependence for these countries (the dependent market economies—DME—model). In an earlier paper, I suggested adding the role of the state to the list of features of the DME model, especially direct state intervention in the form of state-owned companies (Szanyi 2012). Further research on the East Central European capitalist model also highlighted corruption as a factor that is more dominant in ECE than in other European capitalist models (Szanyi 2012, 22–23). Corruption is also linked to the strong role of the state, which can be misused by politicians because of weak institutions (political, social, and market institutions alike).
