Transition economy - the state of the economy in transition from oneeconomic development system to another, which entails a change in its foundations, forms of relations of economic processes, interaction between individual economic actors, change of ownership types.
Transition economy as system characterized by the following features: the beginning of the formation of a new economic system, multi-structured, unsustainable development, duration of transformations.
Exist several types of transitional economic conditions. First of all, it is the transition from capitalism tosocialism in a radical form. An example of this option is the USSR in the period 1917-1930. This time was characterized by the revolutionary replacement of capitalist relations by socialist relations and the transformation of the economy into a one-structured command system. The role of the state was manifested in the dictatorship of the proletariat.
Another type of transition economy ischanges in how it is coordinated. An example is the change in regulation of the economies of Western countries after the end of the Great Depression. At the same time, economic systems have not changed, but the principles and fundamentals of economic regulation have become new.
The third option that can takeA transition economy is the elimination of economic distortions caused by internal or external causes in countries that were formerly colonies. In this case, the creation of the basis of an independent economy takes place, accompanied by the elimination of backwardness in the social infrastructure. But this option is accompanied by political instability.
The fourth option is to overcome the instability in the economy, as in the countries of the Latin world, when it is necessary to overcome the financial dependence and imbalance of macroeconomic scales.
The fifth option is specific forms.transition economy of the former countries of the socialist camp. This period of economy is called the intersystem transition. This type includes the transition economy of Russia.
Features of the Russian economy in transition are as follows.The modern economy of the country is moving from a pure system of economy to a mixed one. Now the Russian economy is faced with the task of restoring the multi-structure of the economic system with a variety of socio-economic relations.
The Russian economy is characterized by a departure fromsocial paternalism and total social guarantees to the market economy. The transformation of the Russian economic system began in the conditions of the collapse of the USSR, which was also accompanied by the collapse of political ties, and, consequently, economic ties, with other countries that were connected up to this time within the framework of the Council for Mutual Economic Assistance. Thus, changes in the Russian economy are geopolitical.
During its formation, a transition economysocially oriented type requires the implementation of such measures. First of all, it is the liberalization of prices, foreign economic relations, economic relations. Further, structural changes are needed in the form of privatization, demonopolization, denationalization, creation of a competitive environment.
The institutional changes that the economy of this stage requires include the creation of a market infrastructure, training for the market, the formation of new legislation.
For the formation of social orientation, the necessary measures are: assistance to vulnerable groups of the population, creation of a system of social protection of a new level.
In the transformation of the structure of the national economy, conversion is required, the introduction of programs for the structural transformation of regions and industries, the stimulation of progressive industries.
A transitional economy is one of the main requirements for the state that puts forward the requirement of privatization and the formation of a full-fledged spectrum of different types of property relations.