Market Economies of the Western Balkans Compared to the Central and Eastern European Model of Capitalism

Sa？etak Using the Central and Eastern European model of capitalism, this paper compares the market economies of the Western Balkan countries to the postsocialist European Union member states. It analyzes the main institutional areas of a socio-economic system such as product markets, innovation system, ？nancial system, labor market and industrial relations, social protection and the educational system. The comparison of institutional systems does not provide an unambiguous answer to the question of whether the Western Balkan market economies ？t into the model. There are many similarities between the institutional arrangements of the two regions, and the di？erences seem to be a consequence of delayed reforms rather than of an alternative model. However, the question of whether the current di？erences will be institutionalized or whether they will create a new normality—a new, distinct model of capitalism—remains open