"Ukraine has been economically outperformed by Russia, Kazakhstan, Poland and Romania, and is currently suffering from a significant political and economic crisis. However, Romania and Kazakhstan have, in several ways, also been outperformed by Russia and Poland, and this article aims to understand why. The data point to specific policies and the establishment of strong institutions and basic rights, as well as the level of integration with the international economic system. Countries which have been able to stabilise their exchange rates have also done significantly better, while those which have been able to put strong institutions in place and guarantee private property rights have been able to attract foreign investors and establish meaningful trade relationships. Economic performance is not pre-determined by natural resources but can actually be shaped by wise political and economic leadership. Outside political influences, strong institutions and important reforms appear to be far more relevant to economic success than the presence of ‘black gold'."

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