Why transition matters

By EBRD  Press Office

Why transition matters

New episode of the EBRD podcast available for download

The latest episode of the Pocket Economics podcast looks at a core EBRD concept: transition.

How should countries  make the transition to market economies? How do they respond to the challenges of globalisation and what are the advantages of an open market over a more closed or planned model of running the economy?

In this episode our guest, Sergei Guriev, the EBRD’s Chief Economist, explains the relation between Transition Economics, Institutional Economics, and Organizational Economics.

“We need to think about challenges related to resilience and inclusion,” he tells Jonathan Charles, EBRD Managing Director, Communications. “The major challenge is to create a sustainable, inclusive market economy.”

Mr Guriev also highlights the importance of institutions for a well functioning market economy. “Institutions matter,” he says. “Transition is exactly about institutional economics.”

The EBRD’s new transition concept argues that to be successful and modern an economy should be more than just competitive; it should also be inclusive, well-governed, green, resilient and integrated.