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.