Searches for the reason for different economic perforamce in different territories. Locates territorial shits of the world economy. Intent on defining the main institutions responsible for implementing policy in the boarders, as well as the external factors that influence such decisions. Compares different 20th century heritage of clsasical Western democracy and postcommunist societies. Maps trends of institutionalism thory. Analyzes views on the factors that explain institutional and regional/local efficiency. Links power devolution and local/regional civic and economic modernization. Studies influence of civil society development on social and political institutions. Defines variables of local and regional institutional effectiveness. Compares models of civic participation in decision-making, as developed in the Western democracies and applied to the socio-political conditions of Central Europe.