Transition Economies

A transition economy is an economy which is changing from a centrally planned economy to a free market. Transition economies undergo economic liberalization, where market forces set prices rather than a central planning organization and trade barriers are removed, privatization of government-owned enterprises and resources, and the creation of a financial sector to facilitate the movement of private capital.

The Ingredients of the Transition Process include

Examples of Transition economies

 Transition economies in Europe and the former Soviet Union

 CEE

Albania, Bulgaria, Croatia, Czech Republic, FYR Macedonia, Hungary, Poland, Romania, Slovak Republic, Slovenia

Baltics   

Estonia, Latvia, Lithuania

CIS

Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan

 Transition economies in Asia

 Cambodia, China, Laos, Vietnam