Economic aspects of institutional transformation in post-Soviet countries – current state and consequences for their development and competitiveness

Abstract

The subject of this article is the problem of institutional transformation,
specifically its economic aspects, in countries of the former USSR. First,
selected theoretical aspects related to institutional transformation of
post-communist economies are discussed. Then, a synthetic analysis of
the advancement of this transformation in the post-Soviet area and of its
consequences for the development and international competitiveness of their
economies is conducted. And finally, reference is made to the future of
institutional transformation of post-Soviet economies. The analysis shows
that: from the very beginning (i.e. the break-up of the USSR), the processes
of institutional transformation of post-Soviet economies have been strongly
differentiated both in terms of adopted transformational strategies and their
effectiveness, as evidenced by the very different results observed presently
in this regard; the current level of development, as well as international
competitiveness of most post-Soviet economies are not a direct consequence
of the advancement of their institutional transformation; completion of
the processes of institutional transformation is not to be expected in the
foreseeable future and neither is the introduction of a liberal institutional
environment typical for free market economies.