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The entire world was taken by suprise when 1990 brought an end to Soviet communism in Europe and thus a genuine end to World War II. The fact that these developments surprised not only the leaders and the people of the countries concerned, but also scholars is an extraordinary challenge to the students of Soviet-type economics. In the academic world, where predictive force is one of the key indicators of a successful theory, this weak performance calls into question the validity of earlier findings and interpretations.

This book intends to be a contribution to the “varieties of capitalism” paradigm. The theoretical background is Weber’s theory of legitimacy. Was communism ever “legitimate”? What kind of legitimacy claims were made in the transition from communism to capitalism? Central Europe was closer to the Western “liberal” model. Russia built capitalism in a patrimonial way. China followed its own unique way; some called it “socialism with Chinese characteristics”. Putin experiments with an innovation for post-communist capitalism. He confronts the “oligarchs” and reallocates...