After two decades of transition we have the opportunity to assess this ongoing and in many ways unique historical process. Furthermore, many lessons from the large-scale institutional transformation can be mutatis mutandis applied in the developed countries as they approach their own institutional and social policy reforms. In the context of the countries in transition it is important to understand that the mere emulation of institutions from the advanced economies does not automatically yield similar results in terms of efficiency, competition and development. The aim of the analysis is to explore the real potential of the countries and the societies of Central and Eastern Europe. It is a potential that, according to my thesis, has not been fully realized in the past decade. The main argument is that institutions and their interaction appear as a determinant to the behavior of social actors. As such, this analysis indicates that any future reform attempts in the developed or the developing part of the world could be executed with greater efficiency and with lesser social and economic costs.

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