Transition Economies
Asst.Prof. Betül YÜCE DURAL
October 2009
1- Central and Eastern European
Countries-CEECs
2- Commonwealth of Independent
States-CIS
Transformation-Transition
Transition from Plan to Market
 Economic
 Social
 Political
EU membership
CEEC
 1991 Fall of socialism
 1 May 2004
Full membership
TÜRKİYE
*1987 application
• October 2009
• Negotiations and
hopes still go on, but
full membership might
be a dream.
Enlargement
 1957 Treaty of Rome 6 founders:
 Belgium, France, West Germany, Italy,
Luxemburg, the Netherlands.
 Four successful enlargement followed as:
1973
1981
1986
1995
Denmark, Ireland, the United Kingdom
Greece
Portugal and Spain
Austria, Finland, Sweden.
 1993 Copenhagen European Council –
Invitation if they wish…
 Application dates for EU membership
(In date order-chronology)
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Türkiye
14 April 1987
Cyprus
3 July 1990
Malta
16 July 1990
Hungary
31 March 1994
Poland
5 April 1994
Romania
22 June 1995
Slovakia
27 June 1995
Latvia
13 October 1995
Estonia
24 November 1995
Lithuania
8 December 1995
Bulgaria
14 December 1995
Czech Republic 17 January 1996
Slovenia
10 June 1996
 1st May 2004 enlargement:
Hungary, Poland, Czech Rep. Slovakia,
Slovenia, Lithuania, Latvia, Estonia,
Cyprus and Malta.
 1st January 2007 enlargement:
Bulgaria and Romania.
Capitals of CEEC
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Romania- Bucharest
Hungary- Budapest
Poland-Warsaw
Bulgaria-Sofia
Estonia -Tallinn
Czech Republic - Prag
Slovakia - Bratislava
Slovenia - Ljubljana
Albania -Tirana
Latvia - Riga
Lithuania - Vilnius
Croatia -Zagreb
Moldova - Chisinau
FYROM(Former Yugoslav Republic of Macedonia) - Skopje
Republic of Kosovo- Pristina
Bosnia and Herzegovina- Sarajevo
Serbia- Belgrad
Montenegro- Podgorica
Capitals of CIS
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Russia-Moskow
Kazakstan -Astana
Turkmenistan- Ashgabat
Azerbaijan -Bakü
Kyrgyzstan -Bishkek
Tajikstan -Dushanbe
Georgia -Tbilisi
Uzbekistan -Tashkent
Armenia -Yerevan
Ukraine - Kiev
Belarus -Minsk
 Official candidates:
Croatia, Macedonia and Türkiye.
 Officially recognised as Potential
Candidates:
Albania, Bosnia and Herzegovina, Montenegro,
Serbia and Iceland.
Kosovo is also listed as a potantial candidate but the EU
commission does not list it as an independent country because
not all member states recognise it as an independent country
from Serbia.
 5th enlargement is the biggest one in
terms of area, culture, history,
population…etc.
Benefits of enlargement to the EU
Benefits are both political and economic:
 win-win situation for both sides (CEECs and EU)
 The increase in the area of peace, stability and welfare will
increase the safety of everyone in the continent.
 Remove the fear of Socialism in that area.
 EU market with 370 million people + over 100 million
CEECs people = positive effects for both sides, will create
new jobs.
 New members increase the quality of life
standards of all Europeans;
common standards and cooperation in environmental
protection, crime, drugs policies and combating with
illegal migrants.
 New members will increase the effectiveness of
EU in the world economy with Common Foreign
and Security Policy, Trade Policy and Global
governance.
Benefits of being a member of EU
to the CEECs
 Respectability in world politics
 Credibility of attraction of FDI
 To settle and stable the new democratic regime
and to establish confidence
 To settle the stability
 Entrance into the world’s biggest market
 Easy reach to the regional and structural funds
Costs of CEECs membership to the EUProblems
 Diversity of opinions in the parliament and
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commission
Differences in national interests
Economic and politic backgrounds of new
members-initial conditions
Insufficient infrastructure and development
Common agriculture policy (CAP)
Economic Systems
 An economic system is the system of production,
distribution and consumption of goods and services of an
economy.
 Alternatively, it is the set of principles and techniques by
which problems of economics are addressed, such as
the economic problem of scarcity through allocation of
finite productive resources.
 The economic system is composed of people and
institutions, including their relationships to productive
resources.
 Examples of contemporary economic systems
include capitalist systems, socialist systems, and
mixed economies.
 An economic system is a set of methods and standards
brought by which a society decides and organizes the
allocation of limited economic resources to satisfy
unlimited human wants.
 At one extreme, production is carried in a privateenterprise system such that all resources are privately
owned.
 It was described by Adam Smith as frequently
promoting a social interest, although only a private
interest was intended.
 At the other extreme, following Karl Marx and Vladimir
Lenin is what is commonly called, such that all
resources are publicly owned with intent of minimizing
inequalities of wealth among other social objectives.
 Alternatively, 'economic system' refers to the
organizational arrangements and process
through which a society makes its production
and consumption decisions.
 In creating and modifying its economic system,
each society chooses among alternative
objectives and alternative decision modes.
 Many objectives may be seen as desirable, like
efficiency, growth, liberty, and equality.
Basic types Economic systems
The basic and general economic systems are:
 Market economy (the basis for several "hands off" systems, such as capitalism).
 Mixed economy (a compromise economic system that incorporates some
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aspects of the market approach as well as some aspects of the planned
approach).
Planned economy (the basis for several "hands on" systems, such as socialism,
or a command economy).
Traditional economy (a generic term for the oldest and traditional economic
systems)
Participatory economics (a recent proposal for a new economic system)
Inclusive Democracy (a project for a new political and economic system)
 There are several basic and unfinished questions that must be answered in
order to resolve the problems of economics satisfactorily.
The scarcity problem, for example, requires answers to basic questions,
such as: what to produce, how to produce it, and who gets what is
produced.
An economic system is a way of answering these basic questions, and
different economic systems answer them differently.
 Totally new system, hundred years later will be called as “……..”.