This paper examines the relations between postcommunist states and the powe
rful economic groups that dominated the early stages of postcommunist econo
mic restructuring. The main argument is that the strategic actions of "winn
ers" systematically undermine the capacity of state institutions and the or
ganizational coherence of administrative agencies. Against the background o
f a detailed study of one particular story of "postcommunist success", the
rise of Multigroup in Bulgaria, I explore the concrete manifestations of "s
tate weakness" in postcommunism, the nature of redistributive conflicts the
former socialist societies, and the historical specificity of the processe
s undermining the organizational bases of governance in the former Soviet w
orld. (C) 2001 The Regents of the University of California. Published by El
sevier Science Ltd. All rights reserved.