Geographia Polonica (2005) vol. 78, iss. 2

Is the Donetsk Model Sustainable?

Hans Van Zon

Geographia Polonica (2005) vol. 78, iss. 2, pp. 77-90 | Full text

The regional economy and polity of Donetsk is monopolized by a coherent group of financial-industrial groupings. These groupings operate in the context of a neo-patrimonial polity in which clan loyalty is more important than formal rules. The dynamics of clan politics provides the key to understanding the social and economic predicament of Donetsk, while the 'virtual economy' approach and the model of 'partial reform equilibrium' are not very helpful in explaining the economic development of Donetsk. The question of the economic and social sustainability of the 'Donetsk model' is addressed.

Keywords: Ukraine, transition economies, regional economics, clan politics

Hans Van Zon, University of Sunderland Edinburgh Building Chester Road Sunderland, SR 1 3SD, United Kingdom