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Abstract

Progress in transition and economic governance

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The transition countries have made strong progress in structural and institutional reform over the past year although the reasons for this have varied across the region. Marked improvements in central eastern Europe and the Baltic states (CEB), following EU accession in May 2004, were driven largely by favourable market responses to recent progress in strengthening institutions. Advances in some parts of the Commonwealth of Independent States (CIS), meanwhile, followed significant political change. There was, however, a slow-down in the pace of reform in much of south-eastern Europe (SEE). This reflected not only continuing political uncertainty but also a pre-EU accession pause in reform by the candidate countries. The results of a large-scale survey of the business environment in 2005 showed an improvement overall since the previous survey in 2002. Nevertheless, significant problems remain for many countries.


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