Transition economy - the state of the economy in the transition from oneeconomic system of development to another, which entails a change in its foundations, forms of links between economic processes, interaction between individual economic entities, and the change in types of ownership.
Transition economy as system characterized by the following features: the beginning of the formation of a new economic system, multi-structure, unstable development, the duration of the transformation.
Exist several types of transitional economic conditions. First of all, this is the transition from capitalism tosocialism in a radical form. An example of this variant is the USSR in the period from 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 one-led command system. The role of the state was manifested in the dictatorship of the proletariat.
Another variant of the transition economy -changes in the ways of its coordination. An example is the change in the regulation of Western economies after the Great Depression. Economic systems have not changed, but the principles and foundations of economic regulation have become new.
The third option that can taketransition economy, 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 specific formstransition economy of the former countries of the socialist camp. This period of the economy is called inter-system transition. This is the type of transition economy in Russia.
Features of the Russian economy in transition 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 fromsocial 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 accompanied by the disintegration of political ties and, consequently, 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, the transition economysocially-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.
The institutional reforms required by the economy of this stage are to create a 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 structure 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, requiring the privatization and formation of a full range of different types of property relations.