Transition Economy

A transition economy refers to a country moving from a centrally planned, government-controlled system (like in communist or socialist states) toward a market-based economy where private businesses and competition play a significant role. This process involves significant reforms, such as privatizing state-owned companies, establishing legal frameworks for property rights, and opening up to international trade and investment. The goal is to create a more efficient, dynamic economy that encourages innovation and growth, but the transition can be complex and involve challenges like adjusting to new market risks and establishing stable institutions.