Introduction: Regional Diversity and Local Development in the New Member States; P.Blokker & B.Dallago PART I: REGIONAL DIVERSITY IN CENTRAL AND EASTERN EUROPE Time Horizon and Institutional Underpinnings of Local Development; A.Surdej Regional Development in Central and Eastern Europe; G.Gorzelak Local Development in European Union Perspective: Cohesion and Regional Policies in Central and Eastern Europe; C.Guglielmetti Poland's Great Transformation and the Lessons to be Learnt; G.W.Kolodko Regional Labour Market Developments in Transition; P.Huber Regional Development Effects of Foreign Direct Investment in Central and Eastern Europe; P.Pavlinek PART II: EUROPEAN INTEGRATION, REGIONAL DISPARITIES, AND DEVELOPMENTAL STRATEGIES IN NEW AND PROSPECTIVE MEMBER STATES Local Development and Local Policy in Hungary - Challenges and Perspectives in Changing Circumstances; É.Ruttkay Local Government in the Process of Transformation; A.Gasior-Niemiec Social Benefits and Administrative Strains: the Golden Burden of EU Funds at the Subnational Level in Romania; S.Ionita Multiple Shocks and Changes in the Development Gradient of Croatia's Regions?; I.Bi?ani?