Coinciding with the popularity of postmodern theory, the fall of communism appeared to offer further evidence of the exhaustion of modernity. Such analysis is grounded in a view that the Soviet system was the epitome of modernity. An alternative approach regards post-communism as opening new terrains of struggle for modernity. Thus Habermas and others suggest that post-communist societies are rejoining the trajectory of western modernity whose problems they now recapitulate. This alternative view implies that Soviet systems were something other than 'modern', although their nature is not always clearly defined. However, even if post-communist societies do encounter problems of modernity, they do so in new circumstances where modernist notions of social development have become problematic. This article argues that, contrary to those who regard modernization or postmodernization as irresistible trends, core post-communist societies are likely to develop along an alternative path to that of western modernity. This is tentatively described as 'neo-mercantilist'.