The transition economy is ... Countries with economies in transition: a list

Market economy and its formation in the modern world is a very complex issue, since it is necessary to completely transform and change the system that has developed over many decades. But you can not quickly change this, create an updated worldview of economic entities, create a regulatory and legal framework. The transition economy is a stage of development, reform and transformation. It always takes a long time, during which the economic system will be a mixture of elements of a modern market and administrative-command. This is a change in development, not an established functioning.

Main features

Transitional economies are always volatile and unstable, which are "irrevocable". This does not just disrupt the stability of the system so that it can then return to equilibrium, but significantly weakens it. The economy of the transition period irreversibly should lead to some other, more stable, economic system. This instability causes irreversibility and a special dynamism of development. However, the growth of uncertainty, the confusion of the new and the old, is always a contradiction. In the socio-political sphere, this leads to aggravation of contradictions and social upheavals.

Historicity as a characteristic feature

It is historical regularity - an important feature of any country with a transition economy, a list of which can be found at the end of the article. The Eastern European and now independent states that were part of the Soviet Union faced problems that are more complex than those of Latin American countries, since in Latin America there were many well-developed market institutions. Accordingly, the number of privatized enterprises was calculated not by thousands, but by hundreds. Features of the transition economy - different forms of its manifestation in different conditions. All this should be taken into account by governments when developing plans for reforming economic systems.

Features of functioning: inertia

Countries with economies in transition have many characteristics. The first and most important is the continuity (inertia) of the reproductive processes, which exclude the possibility of quickly replacing existing economic forms with other, more desirable ones. It is due to the inertia of reproduction that old economic relations and forms remain for a long time.

Increased intensity

The transition economy is always a very stressful period. Its another key feature is the very rapid and intensive development of new relationships between market actors. The irreversibility of evolution accelerates the implementation of many reforms. The economy of the transition period is doomed to the success and acceleration of its transitional processes, if reforms are not arbitrary, but based on regular evolution and a verified system of actions.

Local type

There are different types of transitional economy, which differ in the nature of the processes occurring and their scale. Local is characterized by the fact that the transition state is viewed in the scales of a single region. It is based on the features and uneven development of different regions. The local transition economy is the embodiment of the unity of the common, the special. In an unequal form, this form has developed in Britain, Germany and France.

Global type

This is a single process of many changes within the whole civilization (western and eastern), world economy. Initially, such movements are provoked by developed countries with a transition economy. The tendencies that arise in this case, affect the development of already mega-economic processes.

Evolutionally natural type

This type is distinguished by the nature of the transient processes occurring globally. However, local transition economies can also be formed under the influence of regular evolution. In general, all types of transition economy are subject to the law of natural evolution.

Evolutionary-reformatory type

A similar kind of transitional market economy is the connection of various transformation processes with the programs of societal reform. However, the regularities of the course of evolution are completely preserved in this case. This type tries to accelerate it involuntarily by introducing reforms and transformations. As an example, we can cite Stolypin's reforms in tsarist Russia.

Basic vectors of regularities

Gradual withering away of socialist rudiments - command economy, totalitarianism, leveling, underground market, shadow capitalism. Also an important vector is the genesis of the relations of the capitalist economy (a modern economy based on the market and private property). The tendency of socialization (the return of national, group and international values of economic behavior) and general humanization is the foundation of virtually any transformational processes.

Inevitable Changes

There are three main changes that are irreversible and occur during the transition period: the loss of the function of the sole management of all economic resources by public authorities, the decline of the transformation and the budget crisis. These patterns are generally quite negative in nature and are expressed in crises. Since a large part of the property becomes private, the state loses power over the monopoly of making economic decisions.

The main tasks on the way to becoming

The transition economy is a complex process of creating a new type of system, overcoming the shortcomings of the old one and ensuring efficient growth of the economy. Such crisis phenomena as the decline in production, the growth of inflation and unemployment, are due to changes in the economic system. Therefore, it is necessary to look for ways to solve the following problems:
1. Financial and credit stabilization of the economy through the conduct of monetary policy.
2. Privatization and denationalization of enterprises in different sectors of production and development of competition and entrepreneurship.
3 Demonopolization is the most important prerequisite for the formation of market competition. Development of a system of restrictions on merger, disaggregation of existing monopolies.

Liberalization

Developed transition economies should pay special attention to price liberalization, which would balance supply and demand, eliminate the deficit, and create conditions for competition. Perhaps two ways of such reforms:
1. Gradual, that is, long-term liberalization.
2. Radical, that is, large-scale and rapid introduction of new reforms, which is called "shock therapy".
It is also necessary to take care of the market infrastructure as a system of economic institutions, to create a strong social protection of the population.

Features of the structure of the transition economy

Property rights are the determining factors in the development of the free market economy, these are the characteristics of the transition economy. Only the owner is able to independently make the necessary decisions and monitor the result. Entrepreneurs are trying to multiply property, as it provides a wider range of choice of business and pricing, which affects income. The transition economy is a certain structure of relations:
- the main levers of influence are in the hands of large shareholders with a high concentration of invested capital;
- further many small and medium-sized farms with private or joint-stock ownership go;
- an important role is played by municipal and state property.

Countries with a transitional type of economy

In such countries, all the changes and changes described above occur. Countries with a transitional type of economy in Eastern Europe are mostly former members of the Soviet Union. To them belong: Russia, Belarus, Ukraine, Latvia, Moldova, Lithuania, Azerbaijan, Armenia, Kyrgyzstan, Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan. Also in Central Europe there are countries with a transitional type that were members of the socialist camp: the Czech Republic, Poland, Slovakia, Romania, Hungary, Serbia, Bulgaria, Montenegro, Croatia, Macedonia, Bosnia and Herzegovina, Albania, Slovenia. In political life, such countries play the role of subordinates. Some countries have joined the European Union, some even became members of NATO. Countries with economies in transition, the list of which is listed above, at the moment are mostly in a pre-crisis state. In the early nineties, a course was taken towards a transition to a market economy from a planned one. Very quickly, these reforms were introduced in Poland, more gradually in Hungary, the Czech Republic, Estonia, Slovenia, slowly - in Ukraine, Romania, Bulgaria and Belarus.