The aim of this paper is to analyze the impact of historically shaped sociocultural factors and economic
resources on the quality of governance and bureaucratic efficiency in Central East European regions. Eastern
Europe’s economic heritage is of greater significance for social capital than is affiliation with Catholic or Protestant
cultural circles. The impact of individualism on the quality of governance is indirect. Individualism favors trust
and self-organizing, and the rivalry and pressure of interest groups contributes to the quality of governance at the
national and regional level. In EU regions as a whole, social capital is more important for the quality of governance
and bureaucratic efficiency than GDP. In CEE regions, the administrative entities involved in spending EU funds
work with greater efficiency than might be expected given the regions’ low economic resources and social capital.
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