Different Paths of State Institutions Development – Convergence and Divergence in Post-Socialist Countries
Different Paths of State Institutions Development – Convergence and Divergence in Post-Socialist Countries

Summary/Abstract: This study analyses the evolution of state institutions in 18 Central and Eastern European countries that have transitioned fromauthoritarian, centrally planned economies to democratic market economies. The aim is to assess the quality of their state insti-tutions vis-à-vis those of the EU-15 and to evaluate and compare the levels of socio-economic development in countries whoseconvergences have followed different paths. To this end, an index to assess institutional quality was developed; one that incorporatespolitical freedom, economic freedom, and governance quality. Sigma convergence analysis and cluster analysis were employedto identify paths of convergence and divergence. Estonia and the Czech Republic were shown to have made significant progress,while Russia and Belarus have lagged behind. Each country was assigned to one of five groups on the basis of similar convergencecharacteristics. Changes in GDP per capita and the HDI within the identified groups were subsequently examined. Despite overallprogress, substantial disparities in institutional quality and socio-economic development persist in CEE.

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