Regulation and Public Sector Development: A Post-Transition Perspective

The article is devoted to the changing role of the major public policy function of regulation and the changing role of the public sector in various phases of systemic change in central and eastern Europe. It surveys the consequences of bloodletting for the civil service and state capactiy in a world increasingly dominated by delocalisation and dematerialisation. Meanwhile a large part of the economy is unlikely to be transformed into purely asset value maximising units, thus the importance of regulating the intermediate forms of activity between public and private firms is going to gain in importance. Limitations of the current EU model, based on traditions rather than attending tasks of the future are highlighted in both the administrative and the enonomic spheres.