Two Roads Diverge

The dramatic events of Maidan in February 2014 shone a spotlight on the immense problems facing Ukraine. At the same time that Ukraine was undergoing turmoil, its western neighbor Poland was celebrating twenty-five years of post-communism with a rosy economic outlook and projections of continued growth. How could two countries who shared similar linguistic, cultural, economic and political heritages diverge so wildly in economic performance in such a short span of time? The main argument of this book is that institutions, and more specifically the evolution or neglect of the particular institutions needed for a market economy, explain the economic divergence between Ukraine and Poland. This book discusses the evolution of key institutions such as property rights, trade, and the role of the executive branch of government to explain the recent relative performance of the two countries.

'Christopher A. Hartwell presents a clear and penetrating comparative analysis of Poland and Ukraine, countries which have followed very different policies after the collapse of socialism. He shows the huge social costs of avoiding radical and comprehensive market reforms.'

Leszek Balcerowicz - Warsaw School of Economics

'Hartwell’s fascinating comparison of Poland and Ukraine is a valuable read, and it will appeal to an audience even beyond transition specialists. His starting point may not surprise: Poland has greatly outperformed Ukraine since the Berlin Wall fell, and did so primarily because it moved much more resolutely on market reforms. But Hartwell creates even greater intellectual excitement by arguing that the most important reform differences lay in the relevancy of institutions needed for a market economy, and in the centuries of historical experience which lie behind Ukraine’s lag in institutional changes. Hartwell weaves these three points together in a masterly way, providing a colorful book full of historical breadth and depth.'

Oleh Havrylyshyn - Munk School of Global Affairs, University of Toronto and advisor to Government of Ukraine