Transitional Economy

A transitional economy is a country shifting from a planned economy, where the government controls and manages most industries and resources, to a market-based economy, where private businesses and consumers make economic decisions. This process involves reforming laws, encouraging entrepreneurship, and opening markets to competition. The goal is to improve efficiency, stimulate growth, and increase living standards. Examples include countries like Russia and some Eastern European nations in the 1990s, which moved away from state control towards more open and privatized economies. The transition can be challenging but aims for greater economic flexibility and innovation.