ABSTRACT
During the last ten years the Baltic Sea region 1 (BSR) has undergone a rapid transformation, with the situation changing from one where there is a clear division between market economies and planned economies to one with interacting market-oriented economies. Economic and political development in several transitional economies has stabilized in a positive way in the last few years. The growth rates in countries bordering the Eastern shore of the Baltic Sea first dropped dramatically but have recently recovered in nearly every state. Knowledge about critical development conditions in transitional economies has also improved substantially in recent years. There is currently a considerable amount of comprehensive research on the economic development of transitional countries.
