Transition economy

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Economies
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  Transition economy
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A transition economy is an economy which is changing from a planned economy to a free market. Transition economies undergo economic liberalization, letting market forces set prices and lowering trade barriers, macroeconomic stabilization, where immediate high inflation is brought under control, and restructuring and privatization, in order to create a financial sector and move from public to private ownership of resources. These changes often lead to increased inequality of incomes and wealth, dramatic inflation and a fall of GDP. There are currently 33 economies in transition. These are:

Asia: 1. Cambodia 2. China 3. Laos 4. Mongolia 5. Vietnam

Baltics: 6. Estonia 7. Latvia 8. Lithuania

Central/Eastern Europe: 9. Albania 10. Bosnia & Herzegovina 11. Bulgaria 12. Croatia 13. Czech Republic 14. Hungary 15. Macedonia 16. Montenegro 17. Poland 18. Romania 19. Serbia 20. Slovakia 21. Slovenia

Commonwealth of Independent States: 22. Armenia 23. Azerbaijan 24. Belarus 25. Georgia 26. Kazakhstan 27. Kyrgyz Republic 28. Moldova 29. Russia 30. Tajikistan 31. Turkmenistan* 32. Ukraine 33. Uzbekistan

Note. *Turkmenistan opted out of the CIS on 26 August 2005.

History

Transition trajectories can be idiosyncratic. Some nations have been experimenting with market reform for several decades (e.g., Hungary, Poland), while others are relatively recent adopters (e.g., Macedonia, the former Serbia and Montenegro). In some cases reforms have been accompanied with political upheaval, such as the overthrow of a dictator (Romania), the collapse of a government (the Soviet Union), a declaration of independence (Slovenia, Croatia), or integration with another country (East Germany). In other cases economic reforms have been adopted by incumbent governments with little interest in political change (China, Laos). Transition trajectories also differ in terms of the extent of central planning being relinquished (e.g., high centralized coordination among the CIS states; relatively low centralization in Yugoslavia) as well as the scope of liberalization efforts being undertaken (e.g., widespread in the Baltic States; relatively limited in Romania).

References

External links

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