Some considerations on ending the process of economic transition in Romania and Slovakia

Abstract

The collapse of the centrally planned economies in Eastern Europe has triggered complex economic reforms in all former communist countries, on their ways towards freemarket economic systems. Their economies have become real, real-scale, and real-time research laboratories. The multifaceted and difficult processes of economic transition were scientifically examined as far as transition trail, duration, transition strategy. Based on the matrix model of economic systems and economic transition, the paper is valuing the authors’ previous research work in the area. The main objective is to answer to the question: when the economic transition ends (when the economic reform is completed). The authors propose several ways to determine the moment when the economic transition ends, and the duration of the process respectively. Several standpoints (political, economical, managerial) are presented. The study was completed in Romania and Slovak Republic. The research results reveal similarities as well as differences; specific issues are discussed. Assessing the end of economic transition is of top importance in the circumstances of the current global crisis. When the economic recession and transition are overlapping, then the “pendulum effect” might appear and the economic reform ends before reaching its objectives. The models of analysis and research results are important for both academics and practitioners – strategists, policy makers, and managers – not only from Romania and Slovakia or other Eastern European countries but any transitional economy.