This paper deals mainly with the historic origins of the special rent-based East-Central European development model. The Atlantic competition-based model used to serve as a benchmark for the region’s development. However, due to various reasons discussed in this paper the Atlantic institutions remained rather weak, and much of the Ottoman Balkan model’s features also made lasting imprints. As a result, a specific hybrid socioeconomic model evolved that featured the state-permeated creation of rents and their politically predetermined distribution. The rent-based economy’s stability has been supported by external political and economic assistance. The social tensions of the political and economic backlashes have been covered by politically inflated regional conflicts, mainly ethnic rivalry. The study provides evidence on the historic determination of these features of the rent-based ECE development model.
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