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The former socialist countries of South East and Central Europe exhibit great variation in institutional quality. Unlike the sparse existing literature, I claim that the variation can be explained by the legacies of the Ottoman and Habsburg Empires. I identify historical legacies of the Empires, which have affected the current institutional quality of the successor states. I show empirically that the Empires' legacies are key determinants of institutional quality, and that the Habsburg successors have institutions that are more efficient in a market economy than the Ottoman successors. In contrast, I find an insignificant effect of socialism on institutional quality. Copyright 2007 Blackwell Publishing Ltd..

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This article, unlike the vast existing literature on political trust, focuses on trust in postsocialist countries and, more specifically, on trust of young people rather than on trust of general populations. Studying young people is important in the context of establishing democracy and the survival of democracy. The authors examine the continuous effect of socialism and stipulate that the legacy of the type of socialist regime is a major determinant of political trust in Central and Eastern European and former Soviet Union countries. Utilizing individual-level data from an institutional survey, the authors find that distinguishing between different types of socialism is instrumental in explaining political trust. Results on the former Yugoslavia, however, suggest that the effects of socialism might be temporarily overshadowed in the short run by drastic post-socialist events such as warfare. The findings have implications for policies aimed at fostering political trust in post-socialist countries and for discerning future patterns of political and social developments.