Domestic and Global Dimensions of Post-Communist Institution-Building

Abstract

This article reviews four recent books that inquire into the nature and challenges of institution-building in the post-communist region. The main lessons learned from this scholarship relate to the complexity of establishing effective domestic institutions securing property rights and the role of various domestic and global factors that shape these processes. Domestic variables include political connections, bargaining power, and the nature of a social equilibrium that shapes norms, expectations, and behavior of economic actors. Global factors include structural constraints and opportunities associated with the global financial system and institutions.