The article focuses on the discussion over attempts to re-interpret causes and effects of the state of permanent socio-economic under-development of peripheral regions in Europe invoking Italian Mezzogiorno as a case. Mezzogiorno widely held to be a monolith paradigm of unsuccessful modernization, is being cognitively deconstructed in the face of a two-way running stream of analyses and enunciations. Ideologically imbued political discourse originating in the separatist North reinforces and emphasizes an image of South as a lawless consumer of the Italian state’s resources produced in the North. As a response arises an equally ideologically motivated discourse of academic and cultural elites of the South, whose aims to produce a new, positive image of the South as a space alternative to northern egoism and materialism, a space bridging Europe and the rest of non-Atlantic world. In this context, a discourse of social sciences ever stronger marks its presence; considering conditions of socio-economic development of peripheral regions it forfeits a unidimensional neoliberal approach and instead turns to multidimensional analyses of institutional environment as a primary source of socio-economic dynamics. The debate surrounding Italian Mezzogiorno may constitute at the same time a useful vantage point for a debate over the Polish model of development, especially with regard to peripheral and backward regions in Poland.