EURINT (Aug 2020)
THE ASSESSMENT OF THE TRANSITION EFFECTS TOWARDS A MARKET ECONOMY. THE CASE OF UKRAINE, BELARUS AND THE REPUBLIC OF MOLDOVA
Abstract
The `90s have been a very difficult decade especially for the states that have been part of the former Soviet Union for more than half of century. Countries like Ukraine, Belarus or the Republic of Moldova had to face new challenges and realities and to adapt to the market economy, a concept unknown in a communist world. The transition from a state-controlled economy to a liberal and market oriented one was tough in more ways than one. Underlining the most important challenges that these countries had to face in order to be able to compete on the international market, we assess the impact of the regional economic integration structures upon their position on the international economic arena. Using variables such as Gross Domestic Product, Foreign Direct Investments, trade balance structure and the Human Development Index we demonstrate that although it has been more than 30 years since the communism fell, these three states have still a long road ahead of them if they want to be players on a highly competitive market. Through a parallel study of the Deep and Comprehensive Free Trade Area Agreement and the Eurasian Economic Union we will demonstrate that the advantages of the heavy industry, energy resources or the agricultural products have started to lose ground on a market where digitalization dictates most of the trade agreements and foreign investments.
