The Role of Institutions in the Process of Post-Socialist Transformation

The transformation of institutions is the process that simultaneously takes place with economic reforms. Institutional development is important dimension of the transition process and should not be neglected in the transition theory. Institutional economics is most appropriate theoretical approach that enables comprehension of the role of institutions in economic transformation. Institutional network that supports market economy consists both of formal and informal institutions. The latter type of institutions is the object of incremental evolution and represents significant constrain in the process of transition