Transitional Economy as a Stage of Economic Development of Countries

The transition economy is a state of the economy in the stage of transition from one economic development system to another, which entails a change in its foundations, forms of links between economic processes, interaction between individual economic subjects, and change of types of ownership.

The transition economy as a system is characterized by the following features: the beginning of the formation of a new economic system, multi-structure, unstable development, duration of transformation.

There are several types of transitional economic states . First of all, this is a transition from capitalism to socialism in a radical form. An example of this option is the USSR in the period 1917 to 1930. This time was characterized by the revolutionary replacement of capitalist relations by socialist ones and the transformation of the economy into a single-command system. The role of the state was manifested in the dictatorship of the proletariat.

Another variant of the transition economy is a change in the way it is coordinated. An example is the change in the regulation of Western economies after the Great Depression. Economic systems have not changed, but the principles and principles of economic regulation have become new.

The third option that a transitional economy can take is the elimination of deformations of the economy caused by internal or external causes in countries formerly colonies. In this case, a basis for an independent economy is created, accompanied by the elimination of backwardness in the social infrastructure. But this option is accompanied by political instability.

The fourth option is overcoming instability in the economy, as in the countries of the Latin world, when it is necessary to overcome financial dependence and imbalance of macroeconomic scales.

The fifth option is the specific forms of the transition economy of the former countries of the socialist camp. This period of the economy is called inter-system transition. This type is the transition economy of Russia.

Features of the Russian economy in the transition phase are as follows. The modern economy of the country is moving from a clean system of economy to a mixed system. Now, the Russian economy faces the task of restoring the multistructure of the economic system with a variety of socio-economic relations .

The Russian economy is characterized by a departure from social paternalism and total social guarantees to a market economy. The transformation of the Russian economic system began in the conditions of the disintegration of the USSR, which was also accompanied by the disintegration of political ties, and, consequently, of economic ties with other countries that had been linked up to that time within the framework of the Council for Mutual Economic Assistance. Thus, the changes in the Russian economy are geopolitical.

In the course of its formation, a transition economy of a socially-oriented type requires the implementation of such measures. First of all, it is the liberalization of prices, foreign economic relations, economic ties. Further structural changes are necessary in the form of privatization, demonopolization, denationalization, creation of a competitive environment.

Institutional reforms required by the economy of this stage are to create market infrastructure, train personnel for the market, and formulate new legislation.

For the formation of social orientation, the necessary measures are: helping vulnerable segments of the population, creating a new level of social protection.

The transformation of the national economy requires conversion, the introduction of programs for the structural transformation of regions and industries, and the stimulation of progressive industries.

The transition economy is one of the main requirements for the state that demands the privatization and formation of a full range of different types of property relations.