Different paths of the second transition in the post-Soviet world: a political-economic analysis

The first generation of economic reforms in the post-Soviet countries mostly resulted in formation of sustainable inefficient institutional equilibria, what may be described as the transition from “plan” to “clan”. Therefore the problem of the “second transition” from “clan” to “market” becomes especially important, turning in the centre of the transition studies. In the last years many post-Soviet states initiated the second wave of reforms, including restructuring of the banking system, of the housing and communal services and of natural monopolies, enhancing competition on markets for goods and services, as well as further reforms in the public sector. The paper aims to explain the perspectives of the “second transition” from a political-economic point of view, which considers the process of reforms as result of the interaction of different political and economic actors formed in turn of the “first transition”. The paper discusses the triggers of the second transition, choice of different scenarios of transition and its major threats.