“…The paper seeks to complement a growing contemporary literature on political economy (see Bohle and Greskovits, 2007; Hancké, Rhodes and Thatcher, 2007; Lane and Myant, 2007;Nölke and Vliegenthart, 2009; Myant and Drahokoupil, 2010) with emerging research on welfare states in transition (see Aidukaite, 2006Aidukaite, , 2009Aidukaite, , 2010Cerami, 2006;Deacon and Stubbs, 2007;Inglot, 2008). In line with Cook (2007Cook ( , 2010aCook ( , 2010b and Haggard and Kaufman (2008), we argue that political economy matters, but that there is a need, within this, to explore the role of political elites in the development of welfare…”