SEA Experience in Countries in Transition 1

Countries in transition are commonly understood to be the ex-socialist states of Europe and Central Asia that are in the process of economic restructuring and political reform. They comprise the countries of Central and Eastern Europe (CEE) and the newly independent states (NIS) of the former Soviet Union, which have major differences in their level of development and democratization. In addition, there are notable differences in the CEE region between countries that have now joined the European Union (EU) ² and the Balkan countries of Southeast Europe, ³ which are undergoing reconstruction following a period of war, conflict and political instability. Countries waiting in the EU accession queue (Bulgaria, Croatia and Romania) are intermediate. By comparison, many NIS ⁴ are still in the early phase of introducing political and market reforms, although there are significant differences between European countries, some of which have EU membership aspirations, and the Caucasian and Central Asian countries which face fundamental challenges in governance and democracy.