Reflections on the Study: “Patchwork Capitalism in Central and Eastern Europe: A New Conceptualization” by Juliusz Gardawski and Ryszard Rapacki

Abstract

The article comprises a thorough and meticulous examination of the theoretical concept of “patchwork capitalism” by J. Gardawski and R. Rapacki, published in WFES no. 24 in 2021. The author posits that, whilst Gardawski and Rapacki’s work is inextricably linked to the broader discourse surrounding research on varieties/models of capitalism, its distinctive nature stems from its foundation in synthesis and classification, a departure from the prevailing analytical methodologies
employed within the ambit of New Institutional Economics (NIE). Without seeking to challenge the most significant elements of the analysis of ‘patchwork capitalism’ presented by both authors, the text expresses the belief that the absence of an “institutional fabric”, which is one of the most salient distinguishing features of the model described by Gardawski and Rapacki, can be regarded as both a vulnerability and a potential catalyst for future transformation. On the one hand, the
presence of “fundamental rules of the game” governing the conduct of all economic entities stabilizes the system by limiting the possibility of chaotic changes and, in a broader context, the risk of developmental drift and instability; on the other hand, its overly strong foundation may hinder reforms. The author notes that changes in patchwork countries are obviously uncoordinated, but at the same time, the possibility of introducing reforms is an advantage, especially in the long term. Notwithstanding the criticism contained in the article, the author expresses his conviction that the concept of patchwork as a “meta-category” allows us to transcend rigid classifications and recognize common features, despite different details and solutions. He further contends that this concept is therefore useful and contributes to broadening research horizons, especially in the context of peripheral countries and new EU members, accurately reflecting the complexity and heterogeneity of the economic systems of Central and Eastern European countries. The authors adopt an interdisciplinary approach, contributing to the development of New Institutional Economics.