economies in transition

Economies in transition are countries shifting from a centrally planned system, where the government controls most economic activities, to a market-based system driven by private businesses and competition. This process involves reforming institutions, establishing legal frameworks, privatizing state-owned enterprises, and encouraging entrepreneurship. The goal is to create a more efficient and dynamic economy that responds to consumer demands. While these changes can boost growth and innovation, they also pose challenges such as economic instability and social adjustment. Overall, transitioning economies aim to improve living standards by adopting market principles while managing the complexities of change.