||This paper is concerned with selected institutional aspects and problems connected with the Czech "neo-liberal" transformation strategy. Transformation should create conditions for economic and social development, for the overall modernization of national economy and society, and for a catching-up process resulting in closing the economic performance gap between a post-Soviet economy and developed market economies. To fulfill this task, the transformation should create an adequate institutional framework. However, even after thirteen years of transformation of the Czech society and economy, the private property is not guaranteed enough due to an inadequate legislation and court system. The voucher privatization scheme and a trial to re-create a Czech entrepreneurial elite with an important stake in national economy resulted in serious complications and hurdles for the process of modernization. This situation has been getting better only after 1998 due to the EU pressures and the acceptance of the EU legislation that has served as an institutional anchor.