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Abstract
During the last few years several attempts have been made to introduce the Varieties
of Capitalism approach in Central and Eastern Europe. We find references to either
the Anglo-Saxon or the continental European model of corporate governance being
adopted in this region. This paper argues that we are not witnessing convergence to
either one of these models, but rather the rise of a specific type of capitalism in
Central and Eastern Europe.
This paper focuses on the Czech Republic in which -just like in other countries in the
region- foreign investment plays a crucial role. The political and economic
developments of transition have led to a situation in which foreign banks and
corporations own a large part of the Czech economy. These actors fundamentally
influence corporate governance regulation.
The paper turns its focus on the role of the EU in the establishment of this economic
regulation. It argues that securing foreign investors an equal opportunity to invest has
been a key issue on its agenda and that the successful attempt to influence the lock-in
of newly established property rights through corporate governance regulation is an
important illustration of this desire.
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