Twenty years ago, about thirty nations in Europe and Central Asia embarked on their economic transition path. For some, the outcome was a considerable success. However, several others are still struggling to shed the inheritance of their past and to correct more recent policy mistakes. Some are likely to bounce back from the 2008-2009 recession with energy, whilst others seem to be sliding back again into a period of poor performance and fiscal disarray. Why is performance so different? Was democracy a factor that facilitated reforms or, rather, slowed them down? Which reforms matter, and why are some so difficult to implement? Tomasz Mickiewicz discusses these questions maintaining a broad, comparative perspective. This revised and updated edition examines the process of institutional change, focusing on its characteristics, determinants and implications for economic performance and development. This book is indispensable reading for all interested in transition economics, economic growth, and European economics.