Central and eastern Europe a decade after the fall of state-socialism: Regional dimensions of transition processes

Following the collapse of state-socialism a decade ago, Central and Eastern European countries (CEECs) opted for democracy and market economy. There w as a widespread belief that transition to a market economy via neo-liberal 'shock therapy' would lead to a quick closure of the wealth gap with the We st. A decade later, however, neo-liberal expectations of convergence under market conditions never materialized. Instead, 'New Europe' has been experi encing fragmentation and growing disparity between 'West' and 'East' and al so within the 'East' itself. In examining regional patterns, and building o n the strengths of institutional and 'radical' approaches, this article cha llenges neo-liberal accounts of uneven development in Eastern Europe. It ar gues that diverging economic trajectories should be understood in the light of the structural legacies of both the state-socialist and pre-socialist p ast and the way these are exposed to, and interact with, international poli tical economy.