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State Capture in Southeast Europe: Findings from the New State Capture Index

Democratisation
Institutions
Political Regime
Rule of Law
Dusan Pavlovic
University of Belgrade
Dusan Pavlovic
University of Belgrade

Abstract

State capture is no longer confined to the post-communist world and unstable systems, nor is it exclusive to stable autocracies. The new State Capture Index, developed by Daniel Kaufmann in 2024, reveals that state capture affects all political systems. More importantly, it serves as a determinant of political regimes rather than a consequence, as was previously believed. Its influence can weaken democratic institutions, steering them towards hybrid or authoritarian forms. This report applies the new index to examine the impact of state capture on democracy in seven post-communist Southeast European economies from 1996 to 2022. By exploring this region's political transformation through the lens of state capture, the paper aims to highlight patterns, implications, and the role of state capture in shaping political regimes in Southeast Europe.