The Nexus between Politics and Socio-Economic Development in South-Eastern European Transition – The Macedonian Case

Abstract

The paper discusses the connection between the level of economic development and the political system of the Republic of Macedonia. Following Herbert Kitschelt's classification of communist regimes as bureaucratic-authoritarian, national-accommodative and patrimonial varieties, the paper classifies Macedonia as belonging to the patrimonial type, since in the post-communist period it was reproduced in the form of a political machine in which formal democratized institutions became prey to the leading groups of political parties. Together with the uncertainty which followed the break-up of Yugoslavia, the continuation of patrimonial traditions through patronage and corruption hampered economic development. Under these circumstances, the politics of liberalization, deregulation and privatization supported by the international financial institutions were not able to achieve their proclaimed economic development goals.

Keywords: post-communism, economic development, democratization, corruption, Macedonia, South-Eastern Europe, Former Yugoslavia

JEL Classification: P30