PROBLEMS, RISKS, AND CHALLENGES OF TRANSITIONAL COUNTRIES

Abstract

Transitional countries, which are undergoing or have undergone a shift from centrally planned or authoritarian economies to market economies and democracies, face various problems, risks, and challenges. These manifest through economic, social, political, and external challenges and problems. Each individual problem and challenge encountered by transitional countries is generally multidimensional and conditioned at almost all stages of transition. The essential dimension manifests through economic, sociological, and political problems and risks, which are often closely linked to changes in the legal systems of these countries. Thus, countries facing certain problems and challenges during the transition period are simultaneously confronted with security risks in both political and economic life. To overcome these problems and risks, transitional countries must implement appropriate economic, political, and social reforms. Transitional policies can lead to political instability primarily because old systems and institutions are largely inadequate to support the new system, often leading to citizen dissatisfaction and manifesting as political discord, protests, and demonstrations, as seen in Serbia. Methodological analysis of the literature highlights the most significant challenges and problems faced by transitional countries, as well as ways to overcome them. The essential conclusion is that to overcome these problems and risks, transitional countries must implement appropriate economic, political, and social reforms. It is important to emphasize that support from the international community is necessary to develop strong institutions that can ensure long-term stability and progress for the country.