How we assess transition qualities

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Artwork from the EBRD 2016-17 Transition Report

Artwork from the EBRD 2016-17 Transition Report

How we assess progress on transition qualities (2017-present)

Following the revision of the transition concept in 2016, the EBRD has developed an approach to tracking progress in transition. The new methodology assesses developments along six qualities of a sustainable market economy: competitive, well-governed, green, inclusive, resilient and integrated.

Progress in each of these qualities is captured by the set of composite indices (referred to as “assessments of transition qualities” or “ATQs”), which combine information from a large number of indicators and assessments in a consistent manner. The resulting ATQ scores measure each economy’s performance against that of comparator advanced economies as well as other economies in the EBRD regions. Scores range from 1 to 10, where 10 represents a synthetic frontier corresponding to the standards of a sustainable market economy.

The latest available scores can be found in the file below.

Assessment of transition qualities 2019

Methodology behind the transition indicators

Transition indicators (1989-2014)

Over this period the EBRD assessed progress in transition through a set of transition indicators. These were used to track reform developments in all countries of operations in 1989-2014. Progress was measured against the standards of industrialised market economies, while recognising that there was neither a “pure” market economy nor a unique end-point for transition.

The measurement scale for the indicators ranged from 1 to 4+, where 1 represented little or no change from a rigid centrally planned economy and 4+ represented the standards of an industrialised market economy. The reform scores reflected the assessments of EBRD country economists using the criteria described in the methodological notes.

Assessments were made in six areas:

  1. Large scale privatisation
  2. Small scale privatisation
  3. Governance and enterprise restructuring
  4. Price liberalisation
  5. Trade and foreign exchange system
  6. Competition policy

Methodology behind the transition indicators 1989-2014 

Sector transition scores (2010-16)

In 2010-2016, the EBRD published assessments of progress in transition across a number of sectors. The transition indicators ranged from 1 to 4+, with 1 representing little or no change relative to a centrally planned economy and 4+ representing the standards of an industrialised market economy. For a detailed breakdown of each of the areas of reform and sectoral scores, see the methodological notes in the online version of Transition Reports for respective years (tr-ebrd.com).

Structural change indicators (until 2010)

These indicators provided a quantitative foundation for analysing progress in transition in the following five sectors: enterprises, markets and trade, the financial sector and infrastructure. In addition, the data file contains EBRD's transition indicators for these sectors. It covers data until 2010.

The file contains the following data series:

Enterprises: Privatisation revenues (% GDP), private sector size (% GDP, % employment), budgetary subsidies and current transfers (% GDP), industry size (% employment), labour productivity in industry (% change), investment (% GDP)

Markets and trade: Share of administered prices in CPI (%), number of goods with administered prices in EBRD-15 basket, share of trade with non-transition countries (%) , share of trade in GDP, tariff revenues (% imports)

Financial sector: Number of foreign-owned banks, asset share of state-owned banks (%), asset share of foreign-owned banks (%), non-performing loans (% total loans), domestic credit to private sector (% GDP), domestic credit to households (% GDP), mortgage lending (% GDP), stock market capitalisation (% GDP), stock trading volume (% market capitalisation), eurobond issuance (% GDP)

Infrastructure: Fixed-line (mobile) penetration rate (per 100 inhabitants), internet users (per 100 inhabitants), railway labour productivity (1989=100), residential electricity tariffs (USc kWh), average collection rate, electricity (%), GDP per unit of energy use (PPP in US dollars per kgoe)

EBRD transition indicators: small-scale privatisation, large-scale privatisation, enterprise reform, price liberalisation, forex and trade liberalisation, competition policy, banking sector, non-bank financial institutions, infrastructure (electric power, railways, roads, telecommunications, water and waste water)

Learn more about the methodology behind these data series. Share of foreign owned banks 

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