Institutional Aspects of the Theory of Economic Transition

The subject of this article is the specific character of the economic transition in the countries of Central and Eastern Europe (CEE) in the context of intensively running processes of globalization and localization. It underlines that the profound fundamental economic change can be accomplished through a number of system transformations connected with a certain aggregation of institutions. They are one of the most important factors, which determine the content and the structure of the economic interrelations between people, as well as the parameters and mechanisms of the economic order of the national economy. On this basis, the conclusion is drawn that the economic transformation cannot proceed without a relevant institutional change. If even temporary limitations to and difficulties for the process of establishment of the institutional change are created during the period of implementation of the economic transition, this will inflict an impact on the mechanisms, intensity end efficiency of the economic transition. It is pointed out, in this plan, that the speed, continuity and efficiency of economic transition in its integrity are determined by the effectiveness of the institutions and institutional transformation.