Transition economy

A transition economy is a country that has moved away from a socialist economy to a market economy. In other words, it is a country that is trying to switch from a system where the government controls everything to one where private businesses and free markets are in charge. To do this, the government might reduce taxes or relax laws that limit competition. This helps attract businesses and encourages economic growth. Eventually, the country hopes to become as wealthy and successful as other, more developed countries.