Institutional Models of Economic Diplomacy in Central Europe

The article examines the evolution and institutional design of economic diplomacy systems in three post-socialist Central European (CE) countries – Hungary, Poland, and Czechia. Understanding the institutional network potential underlying these countries’ presence in foreign markets is particularly relevant in the context of their adaptation to EU strategic initiatives aimed at expanding economic cooperation with the Global South. The development trajectories of these systems differ: while the Czech model of foreign economic promotion emerged in the 1990s, the Hungarian and Polish systems took shape only in the 2010s, defining the chronological scope of this study. Employing a historical–institutional and systemic approach, the article analyzes national models of foreign economic representation and interest promotion at both institutional and organizational levels.

Despite shared socialist legacies and comparable economic structures, the three countries have adopted divergent governance architectures. Czechia illustrates a decentralized model of institutional interaction; Poland applies a dualistic structure, dividing authority between diplomatic institutions and the Polish Development Fund; Hungary operates a vertical, centralized system dominated by the Ministry of Foreign Affairs and Trade. The analysis demonstrates that all three countries have shifted toward microeconomic diplomacy as a prevailing trend, emphasizing business-level internationalization and SME support mechanisms. Special attention is given to institutional reforms, instruments for SME internationalization, and the role of domestic political contexts in shaping governance within support institutions. The study finds that the political evolution of each country has significantly influenced the configuration of its economic diplomacy system: Prague’s pluralistic environment encouraged institutional decentralization and the emergence of multiple coordination mechanisms, whereas the hybrid regimes of Budapest and Warsaw – formed amid processes of democratic backsliding – favored the concentration of economic diplomacy within single, specialized entities. The findings contribute to understanding network-based support systems for SME internationalization in small and medium-sized EU member states and provide a foundation for further research on the institutional network capacities that sustain the external economic engagement of Central European countries.

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