From Convergence to Fragmentation: Uneven Regional Development, Industrial Restructuring, and the ‘Transition to Capitalism’ in Slovakia

Abstract

The transition from the state socialist model of development to one based upon a form of market capitalism is being met with a profound restructuring of the space-economies of Central and East European societies. This paper is an examination of the experience of this ‘transition’ in Slovakia. It is argued that, whereas a process of regional convergence took place under state socialism, we are presently witnessing the regional economic fragmentation of the Slovak economy. New forms of regional uneven development result from the combined effects of the collapse of the national economy, the globalisation and marketisation of economic life, and the interaction between local economic and industrial structures and strategies. By focusing upon the comparative dimensions of change in different regions we can begin to unpick some of the causal mechanisms underlying this trajectory of fragmentation. Of particular importance are the uneven development of new firm formation, foreign direct investment, and the expansion of trade with capitalist markets. The author examines the ability of regions in Slovakia to engage in these dual processes of marketisation and globalisation and finds that integration into the capitalist world economy is highly uneven.