TRANSITION STRATEGIES IN EMERGING ECONOMIES: DEBATES, CHALLENGES, AND LESSONS LEARNED

Abstract

The transition from centrally planned to market economies in the 15 republics formerly
governed by the Soviet Socialist Republics in the 1990s was a complex policy goal aimed at
improving living standards. While the overarching objective was clear—to shift from a
centrally planned economic structure to a market-driven one—significant debates surrounded
the strategic plans required for successful implementation. This transition coincided with a
period of heightened globalization discussions in free-market economies, leading to
imbalanced flows of labor and capital from less developed to more developed regions,
exacerbating regional and intra-country disparities. Comparisons among these transitioning
countries are challenging due to their unique socio-economic structures. Notably, countries
with historical and sociological proximity to the European Union appeared to navigate the
transition more successfully than others. However, success factors varied, making it difficult
to precisely quantify their individual positive impacts. It is crucial to recognize that each
country faced unique conditions throughout this intricate process.