Trade Relations with and between Economies in Transition

Abstract

The chapter analyses the transition process from a centrally planned towards a free market economy, with particular reference to countries that constituted the Former Soviet Union. Noting that the varied strategies applied in individual countries have led to differing degrees of success, the chapter aims to identify the factors restraining economic growth in Ukraine. It describes the way in which the pattern of trade existing formerly with the USSR had shaped the structure of the Ukraine economy. At present, Ukraine's strategy for freer trade with the rest of the world and in particular, with the European Union is conditioned by this former situation. It has contributed strongly to Ukraine's current geo-political dilemma. The need for the country to find equilibrium in its trade strategies with countries of the Former Soviet Union, with Europe and the Rest of the World is emphasized, and the difficulties involved are explained.