It presents a detailed description of transition progress in each of 25 countries of the region, including a summary table with country- specific indicators for the stage reached in various areas of reform. Russian prices and foreign trade have been increasingly liberalised, although about a third of prices remain subject to restrictions. After initial reluctance, in the second half of 1994 Ukraine embarked on widespread liberalisation of prices and foreign trade and on privatisation of selected large companies. Most of the smaller CIS countries have, over the past year, liberalised prices and foreign trade while tightening subsidy and credit policies, and most of these countries have begun implementing mass privatisation. In Kyrgyzstan and Moldova, following comprehensive reform and stabilisation packages in 1993, the market focus is becoming entrenched, with prices freed, competition from imports, and advancing privatisation.
Evidence is provided on the changes over time of key social indicators.
Mortality rates in Russia and the Baltic states increased by 40-70 per cent between 1989 and 1994, reversing the trend seen in the 1980s. These data were collected by the EBRD from statistical agencies and ministries in the countries in the region specifically for publication in this Report. This chapter examines the pattern of investment in recent years and discusses its role in the growth process. The available evidence suggests that investment has fallen, but also that investment began falling before reforms had started, and that fast reform creates the conditions for dynamic investment. Measured against the key role that it should play in providing the infrastructure for private sector development, government investment is low in many transition economies.