Development perspective of transitional countries

Abstract

The end of 20th century witnessed the affirmation and development of information technology as well as the transformation of industrial into information, "new economy", which caused changes in people and circumstances. The role and importance of nonhuman factors was increased, causing entrepreneurship and knowledge-based information to become the most significant resources. The Internet became the basis of the "new economy". It changes the way of doing business, studying, researching, communicating and competition. It also reduces operating costs, crosses national borders and leads to the globalization of the world economy. Transitional countries have to fit into modern development flows by formulating their own strategy of national development and establishing their own competitive advantages in conditions of "new economy". These advantages lie predominantly in highly qualified and skilled younger labor which learns fast and adopts new knowledge and skills, through reducing transactional costs, shortening of certain development stages through which developed countries have already gone, using their experience, scientific-technological progress, a rise in work productivity, etc. Experience of other countries should be innovated and adapted to one's own material and social conditions, not copied. This enables the emergence of "European small tigers", which are similar to "Asian small tigers".

Keywords

• "new economy"
• Internet
• knowledge-based economy
• transition
• globalisation