Transition: The first ten years. Analysis and lessons for Eastern Europe and the Former Soviet Union

Ten years ago, the countries of Eastern Europe and the former Soviet Union took the first steps toward a market economy and democracy. Today, however, a profound divide lies between Central and Southeastern Europe and the Baltics and the Commonwealth of Independent States. These countries started the transition with some of the lowest levels of inequality in the world. But since then, inequality has increased steadily in all transition economies - and dramatically in some of them. The wide variation in transition economies raises questions about differences in economic growth, the applicability of transition policies, the advantages of economic reform, political support for reform, and changes in policy advice for transition economies. This report seeks to answer these questions.