Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, Aarhus School of Business, University of Aarhus Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus

No 00-5:
Missing social capital and the transition in Eastern Europe

Martin Paldam () and Gert Tinggaard Svendsen ()

Abstract: The transition of the »Old Communist« countries of East and Central Europe has been disappointingly slow given the amount of physical and human capital available at the start of the

transition. We argue that this slowness is caused by the lack of social capital, which is an

important factor of production. The Communist system replaced it with an official organization

of society. Further, the communist system needed a set of grey/black networks of »fixers« to give

it the necessary flexibility. These networks were tolerated, but controlled. When the Communist

regime ceased the official organizations collapsed and so did most of the control systems. This allowed a flourishing of the grey/black networks, which can be harmful to the operations of a market economy. The available data are still scanty, but they confirm the argument.

Keywords: Social capital; network; communism; Eastern Europe; Trust; Corruption; Political participation; (follow links to similar papers)

JEL-Codes: A12; C71; D23; D70; (follow links to similar papers)

21 pages, January 1, 2000

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

00-5_gts.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Helle Vinbaek Stenholt ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:aareco:2000_005 This page was generated on 2014-12-14 19:20:35