How we assess transition qualities

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 2021

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.

• Transition indicators by country
• Transition indicators by sector

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).

• Sector transition scores
• Sector transition scores – number format

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.

• Structural change indicators 

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