The author focuses on the link between local government decentralization and democracy in Eastern Europe. It is shown that decentralization is a multidimensional concept and that actual local government systems can be positioned differently on each dimension (functions, control, and finance) depending on the implicit model of local government. Formal and substantive definitions of democracy are distinguished and some conventional measures examined; it is concluded that decentralization and democracy do not necessarily go together. The degree of decentralization and implicit models of postsocialist local government in Eastern Europe are then outlined, with a focus on the contrast between Budapest and Moscow. The development of social movements in the two capitals is taken as an index of substantive democracy and is shown to be influenced not only by the extent of decentralization but also by other features of the local political context. This illustrates the earlier argument that the relation between decentralization and democracy is an empirically variable one rather than a necessary one.
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