Varieties of capitalism in Central and Eastern Europe

Central and Eastern Europe (CEE) comprises 24 countries that are characterised by diverse models of capitalism. We review the literature on varieties of capitalism in the CEE region, distinguishing between the studies that use existing categories in their taxonomies of capitalism in the region versus those that introduce new ones. We analyse the empirical approaches taken to the varieties of capitalism in the region, highlighting the qualitative versus quantitative and static versus dynamic approaches, and discuss how the relations between business and the state have been conceptualised. This allows us to explain how capitalism in CEE countries differs from capitalism in other regions of the world. We then illustrate how capitalism is manifesting in the region, grouping the countries into FDI-based market economies (e.g., Poland), peripheral market economies (e.g., Bulgaria), peripheral market economies with a high level of aid and remittances (e.g., Albania), oligarchic economies (e.g., Kazakhstan), order economies (Belarus) and remittance- and aid-based economies (Kosovo). Finally, we focus on how states exercise influence over business and propose a categorisation of tools of state involvement: corporate control mechanisms, state-led developmental projects and other arrangements for the state enterprise sector, regulation of private businesses, and extra-legal tools to influence private businesses.