TRANSITION REPORT 2014 Innovation in Transition

Sector-level transition indicators

Table S.1 shows the transition scores for 16 sectors in all of the countries where the EBRD works. The methodology is broadly unchanged from previous years (see Chapter 1 of the Transition Report 2010 for a detailed explanation), but some adjustments have been made in the capital markets sector.1

TABLE S.1

Sector-level transition indicators 2014: overall scores

  •   Agribusiness General industry Real estate ICT
    Central Europe and the Baltic states
    Croatia 3 3+ 3+ 4
    Estonia 3+ 4+ 4+ 4
    Hungary 4 4- 4- 4-
    Latvia 3 4- 4- 3+
    Lithuania 3+ 4 4- 4-
    Poland 3+ 4- 4- 4
    Slovak Republic 3+ 4+ 4 4-
    Slovenia 4- 3+ 4 3+
    South-eastern Europe
    Albania 3- 2+ 3- 3+
    Bosnia and Herzegovina 3- 2 2- 2+
    Bulgaria 3 3+ 3+ 4-
    Cyprus 3- 4+ 3 4-
    FYR Macedonia 3- 3 3- 4-
    Kosovo 2+ 2- 2- 2+
    Montenegro 2+ 2+ 2+ 3+
    Romania 3 3+ 3+ 3+
    Serbia 3- 3- 3- 3
    Turkey 3- 3 3+ 3+
    Eastern Europe and the Caucasus
    Armenia 3- 3 3- 3
    Azerbaijan 2+ 2 2 2-
    Belarus 2+ 2 2 2
    Georgia 3- 3- 3- 3-
    Moldova 3- 2- 2+ 3
    Ukraine 3- 2+ 3- 3-
    Russia 3- 3- 3- 3+
    Central Asia
    Kazakhstan 3- 2 3 3
    Kyrgyz Republic 2+ 2 2+ 3
    Mongolia 3- 2+ 2 3
    Tajikistan 2 2- 2- 2+
    Turkmenistan 1 1 1 2-
    Uzbekistan 2 1 2 2
    Southern and eastern Mediterranean
    Egypt 2 2 2+ 3
    Jordan 2 2+ 3- 3+
    Morocco 2+ 3- 3- 3+
    Tunisia 3- 3+ 3- 3

  •   Natural resources Sustainable energy Electric power
    Central Europe and the Baltic states
    Croatia 4- 3- 3
    Estonia 4 3- 4+↑
    Hungary 4- 3 3↓
    Latvia 4- 3+ 3+
    Lithuania 4- 3+ 3+
    Poland 3 3 3+
    Slovak Republic 4- 3 4
    Slovenia 3+ 3+ 3
    South-eastern Europe
    Albania 3- 3+ 2+
    Bosnia and Herzegovina 2 2 2+
    Bulgaria 3+ 3- 3
    Cyprus 3- 3- 3
    FYR Macedonia 2+ 2+ 3
    Kosovo 2 2- 2+
    Montenegro 3+ 2 2+
    Romania 4- 3+ 3+
    Serbia 2 2+ 2+
    Turkey 3+ 3 3+
    Eastern Europe and the Caucasus
    Armenia 2+ 3- 3+
    Azerbaijan 2+ 2+ 2+
    Belarus 1 2 1
    Georgia 2 3- 3+
    Moldova 3 2+ 3
    Ukraine 2- 2+ 3
    Russia 2 2 3+
    Central Asia
    Kazakhstan 2- 2- 3
    Kyrgyz Republic 2- 2 2+
    Mongolia 2 2 2+
    Tajikistan 1 2+ 2
    Turkmenistan 1 1 1
    Uzbekistan 1 2- 2+
    Southern and eastern Mediterranean
    Egypt 1 2+ 2+
    Jordan 2+ 2+ 3
    Morocco 2- 3 2
    Tunisia 2 3- 2

  •   Water and wastewater Urban transport Roads Railways
    Central Europe and the Baltic states
    Croatia 3+ 3+ 3+ 3-
    Estonia 4 3+ 3 4
    Hungary 3+↓ 3+ 4- 3+
    Latvia 3+ 4- 3 4-
    Lithuania 3+ 4- 3 3
    Poland 4- 4- 4- 4-
    Slovak Republic 3+ 3+ 3+↑ 3+
    Slovenia 3+ 3+ 3 3
    South-eastern Europe
    Albania 2+ 3- 3- 2
    Bosnia and Herzegovina 2 2+ 3 3+
    Bulgaria 3 3+ 3- 3+
    Cyprus 3+ 3+ 3 Not applicable
    FYR Macedonia 2+ 3- 3- 3-
    Kosovo 2+ 2+ 2+ 3-
    Montenegro 2 3 2+ 2+
    Romania 4- 3+ 3 3+
    Serbia 2+ 3- 3- 3
    Turkey 3- 3 3- 3-
    Eastern Europe and the Caucasus
    Armenia 3- 2+ 3- 2+
    Azerbaijan 2- 2 2+ 2+
    Belarus 2- 2 2 1
    Georgia 2 2+ 2+ 3
    Moldova 2 3↑ 3↑ 2
    Ukraine 2+ 3- 3- 2+
    Russia 3 3 3- 4-
    Central Asia
    Kazakhstan 2+ 2+ 3- 3
    Kyrgyz Republic 2 2 2- 1
    Mongolia 2 2 2- 3-
    Tajikistan 2 2 2- 1
    Turkmenistan 1 1 1 1
    Uzbekistan 2- 2 1 3-
    Southern and eastern Mediterranean
    Egypt 1 2 2+ 2-
    Jordan 2- 2+ 3- 2
    Morocco 2+ 3 3- 2
    Tunisia 2 2+ 2+ 2+

  •   Banking Insurance and other financial services MSME finance Private equity Capital markets
    Central Europe and the Baltic states
    Croatia 3+ 3+ 3- 2+↓ 3+
    Estonia 4- 3+ 3+ 3-↓ 3
    Hungary 3↓ 3 3 3 3+
    Latvia 3+ 3+ 3 2+↓ 3+
    Lithuania 3+ 3+ 3 2+ 3
    Poland 4- 3+ 3 3+ 4-↓
    Slovak Republic 4- 3+ 4- 2+ 3
    Slovenia 3 3+ 3- 3- 3+
    South-eastern Europe
    Albania 3- 2 3-↑ 1 2-
    Bosnia and Herzegovina 3- 2+ 2+ 2- 2
    Bulgaria 3 3+ 3 3- 3-
    Cyprus 3- Not available Not available Not available 3+
    FYR Macedonia 3- 3- 3 1 2-
    Kosovo 2+ 2 3-↑ 1 1
    Montenegro 3- 2+ 3↑ 1 2
    Romania 3 3+ 3 3- 3-
    Serbia 3- 3 3 2↑ 2
    Turkey 3+ 3 3↑ 3- 4
    Eastern Europe and the Caucasus
    Armenia 2+ 2 2+ 1 2
    Azerbaijan 2 2 2 1 2-
    Belarus 2 2 2 1 2-
    Georgia 3- 2 3- 1 2-
    Moldova 2+ 2+ 2 2- 2
    Ukraine 3- 2+ 2+ 2 2↓
    Russia 3- 3- 2 2+ 4-
    Central Asia
    Kazakhstan 2+↓ 2+ 2 2- 2↓
    Kyrgyz Republic 2 2- 2- 1 2-
    Mongolia 2+ 2 2+ 2- 2-↓
    Tajikistan 2 2- 2- 1 1
    Turkmenistan 1 2- 1 1 1
    Uzbekistan 1 2 1 1 1
    Southern and eastern Mediterranean
    Egypt 2+ 2+ 2- 2 2+
    Jordan 3 2+ 2+ 2 2
    Morocco 3 3- 2+ 2+ 3
    Tunisia 2+ 2+ 2 2- 2+

Source: EBRD.

Note: The transition indicators range from 1 to 4+, with 1 representing little or no change relative to a rigid centrally planned economy and 4+ representing the standards of an industrialised market economy. For a detailed breakdown of each of the areas of reform, see the methodological notes in the online version of this Transition Report (tr.ebrd.com). Upgrades and downgrades are marked by upward and downward arrows respectively. A colour code is used for ease of recognition: green indicates a sector that is at a fairly advanced stage of transition, scoring 3+ or higher. Conversely, dark red denotes sectors where transition has barely advanced and the score is 2 or lower.

There were nine one-notch upgrades this year: electric power (Estonia), urban transport (Moldova), roads (Moldova and the Slovak Republic), MSME finance (Albania, Kosovo, Montenegro and Turkey) and private equity (Serbia). There were 12 downgrades: ICT (Hungary), electric power (Hungary), water and wastewater (Hungary), banking (Hungary and Kazakhstan), private equity (Croatia, Estonia and Latvia) and capital markets (Kazakhstan, Mongolia, Poland and Ukraine). A methodological adjustment in the capital market sector has also led to a number of changes (affecting Bulgaria, Croatia, Jordan, Latvia, Moldova, Montenegro, Morocco, Romania, Serbia and Slovenia), which are not marked as upgrades or downgrades as they do not represent improvements in or the reversal of capital market reforms. Scores for sustainable energy are currently undergoing revision. Please note that not all scores for Cyprus were available at the time of printing, but will be added to the online version of this Transition Report.

Tables S.2 and S.3 show the component ratings for market structure and market-supporting institutions and policies respectively, which together make up the overall sector-level assessment. There have been nine upgrades and 12 downgrades2 – indicated by upward and downward arrows respectively – the reasons for which are outlined in the following sections (see also the “Countries” section of the online Transition Report, at tr.ebrd.com). Changes to inclusion assessments, which have also undergone some methodological adjustments, are presented in Tables S.4 to S.6, as well as being explained in detail in the “Inclusion” section.

TABLE S.2
Sector-level transition indicators 2014: market structure
  •   Agribusiness General industry Real estate ICT
    Central Europe and the Baltic states    
    Croatia Small Small Medium Small
    Estonia Small Negligible Negligible Small
    Hungary Small Small Small Small
    Latvia Small Negligible Small Small
    Lithuania Small Negligible Small Small
    Poland Small Small Small Small
    Slovak Republic Small Negligible Small Small
    Slovenia Small Small Negligible Small
    South-eastern Europe    
    Albania Medium Medium Large Medium
    Bosnia and Herzegovina Medium Large Large Medium
    Bulgaria Small Small Medium Small
    Cyprus Medium Negligble Medium Small
    FYR Macedonia Medium Medium Large Small
    Kosovo Medium Medium Large Medium
    Montenegro Medium Medium Medium Small
    Romania Small Small Medium Small
    Serbia Medium Medium Large Medium
    Turkey Medium Small Small Medium
    Eastern Europe and the Caucasus    
    Armenia Medium Medium Large Medium
    Azerbaijan Medium Large Large Large
    Belarus Large Large Large Medium
    Georgia Medium Medium Large Medium
    Moldova Medium Medium Large Medium
    Ukraine Medium Medium Large Medium
    Russia Medium Medium Medium Medium
    Central Asia    
    Kazakhstan Medium Large Medium Medium
    Kyrgyz Republic Medium Large Large Large
    Mongolia Medium Large Large Large
    Tajikistan Medium Large Large Large
    Turkmenistan Large Large Large Large
    Uzbekistan Large Large Large Large
    Southern and eastern Mediterranean    
    Egypt Large Large Medium Medium
    Jordan Medium Medium Medium Small
    Morocco Medium Medium Medium Small
    Tunisia Medium Medium Medium Medium

  •   Natural resources Sustainable energy Electric power
    Central Europe and the Baltic states
    Croatia Small Medium Large
    Estonia Small Medium Negligible
    Hungary Small Medium Medium
    Latvia Medium Medium Medium
    Lithuania Medium Medium Medium
    Poland Medium Medium Medium
    Slovak Republic Small Medium Small
    Slovenia Small Small Medium
    South-eastern Europe
    Albania Medium Small Large
    Bosnia and Herzegovina Large Large Large
    Bulgaria Small Large Large
    Cyprus Medium Medium Large
    FYR Macedonia Medium Large Medium
    Kosovo Medium Large Large
    Montenegro Small Large Large
    Romania Small Medium Medium
    Serbia Medium Large Large
    Turkey Medium Medium Medium
    Eastern Europe and the Caucasus
    Armenia Medium Medium Medium
    Azerbaijan Large Large Large
    Belarus Large Large Large
    Georgia Large Medium Medium
    Moldova Medium Large Medium
    Ukraine Large Large Large
    Russia Large Large Medium
    Central Asia
    Kazakhstan Large Large Large
    Kyrgyz Republic Large Large Medium
    Mongolia Medium Large Large
    Tajikistan Large Large Large
    Turkmenistan Large Large Large
    Uzbekistan Large Large Large
    Southern and eastern Mediterranean
    Egypt Large Large Large
    Jordan Medium Large Medium
    Morocco Large Medium Large
    Tunisia Large Large Large

  •   Water and wastewater Urban transport Roads Railways
    Central Europe and the Baltic states
    Croatia Medium Medium Small Medium
    Estonia Negligible Small Medium Small
    Hungary Small Medium Small Medium
    Latvia Small Small Medium Small
    Lithuania Medium Small Medium Medium
    Poland Small Small Small Small
    Slovak Republic Medium Medium Small Small
    Slovenia Small Small Medium Medium
    South-eastern Europe
    Albania Large Medium Medium Large
    Bosnia and Herzegovina Large Medium Medium Medium
    Bulgaria Medium Medium Medium Small
    Cyprus Medium Medium Medium Not applicable
    FYR Macedonia Large Medium Medium Medium
    Kosovo Large Medium Medium Medium
    Montenegro Large Small Medium Medium
    Romania Small Small Small Small
    Serbia Large Medium Medium Medium
    Turkey Large Medium Medium Medium
    Eastern Europe and the Caucasus
    Armenia Medium Large Medium Medium
    Azerbaijan Large Large Medium Medium
    Belarus Large Large Large Large
    Georgia Large Large Large Medium
    Moldova Large Medium Medium Large
    Ukraine Large Medium Medium Medium
    Russia Medium Small Medium Small
    Central Asia
    Kazakhstan Large Medium Medium Medium
    Kyrgyz Republic Large Medium Large Large
    Mongolia Large Large Large Medium
    Tajikistan Large Large Large Large
    Turkmenistan Large Large Large Large
    Uzbekistan Large Large Large Medium
    Southern and eastern Mediterranean
    Egypt Large Large Large Large
    Jordan Large Medium Medium Large
    Morocco Medium Medium Medium Large
    Tunisia Large Large Medium Large

  •   Banking Insurance and other financial services MSME finance Private equity Capital markets
    Central Europe and the Baltic states
    Croatia Small Small Medium Medium Medium
    Estonia Small Small Small Medium Medium
    Hungary Small Small Medium Medium Medium
    Latvia Small Small Medium Medium Medium
    Lithuania Small Small Medium Medium Medium
    Poland Small Small Medium Small Small
    Slovak Republic Small Small Medium Medium Medium
    Slovenia Medium Small Medium Medium Medium
    South-eastern Europe
    Albania Medium Large Medium Large Large
    Bosnia and Herzegovina Medium Medium Medium Large Large
    Bulgaria Small Small Small Medium Medium
    Cyprus Medium Small Not available Not available Medium
    FYR Macedonia Medium Medium Medium Large Large
    Kosovo Medium Large Medium Large Large
    Montenegro Medium Medium Medium Large Large
    Romania Small Small Medium Medium Medium
    Serbia Medium Medium Medium Medium Large
    Turkey Medium Medium Small Medium Negligible
    Eastern Europe and the Caucasus
    Armenia Large Large Medium Large Large
    Azerbaijan Large Large Large Large Large
    Belarus Large Large Large Large Large
    Georgia Medium Large Medium Large Large
    Moldova Large Large Large Large Large
    Ukraine Medium Medium Large Medium Large
    Russia Medium Medium Large Medium Small
    Central Asia
    Kazakhstan Medium Medium Large Large Large
    Kyrgyz Republic Large Large Large Large Large
    Mongolia Large Large Medium Large Large
    Tajikistan Large Large Large Large Large
    Turkmenistan Large Large Large Large Large
    Uzbekistan Large Large Large Large Large
    Southern and eastern Mediterranean
    Egypt Medium Large Large Large Medium
    Jordan Small Medium Medium Medium Large
    Morocco Medium Medium Medium Medium Medium
    Tunisia Medium Medium Large Medium Medium

Source: EBRD.
Note: “Large” indicates a major transition gap. “Negligible” indicates standards and performance that are typical of advanced industrialised economies. A historical revision taking into account the availability of new data has been conducted for Jordan’s capital market sector. Please also note the correction for Hungary’s railway sector which was previously misreported. In addition, not all gaps for Cyprus were available at the time of printing, but will be added to the online version of this Transition Report.

TABLE S.3

Sector-level transition indicators 2014: market-supporting institutions
  •   Agribusiness General industry Real estate ICT
    Central Europe and the Baltic states
    Croatia Medium Small Small Small
    Estonia Medium Negligible Negligible Negligible
    Hungary Small Small Negligible Small
    Latvia Medium Small Negligible Negligible
    Lithuania Medium Small Negligible Negligible
    Poland Small Small Small Negligible
    Slovak Republic Small Negligible Negligible Small
    Slovenia Medium Small Negligible Negligible
    South-eastern Europe
    Albania Medium Medium Medium Medium
    Bosnia and Herzegovina Medium Medium Large Medium
    Bulgaria Medium Medium Small Small
    Cyprus Medium Negligble Small Small
    FYR Macedonia Medium Medium Medium Small
    Kosovo Large Large Large Medium
    Montenegro Medium Medium Medium Medium
    Romania Medium Small Small Small
    Serbia Medium Medium Medium Medium
    Turkey Small Medium Medium Small
    Eastern Europe and the Caucasus
    Armenia Medium Small Medium Medium
    Azerbaijan Medium Large Large Large
    Belarus Medium Large Large Large
    Georgia Medium Medium Small Small
    Moldova Medium Large Medium Medium
    Ukraine Medium Large Medium Medium
    Russia Medium Medium Medium Medium
    Central Asia
    Kazakhstan Medium Large Small Medium
    Kyrgyz Republic Medium Medium Medium Medium
    Mongolia Medium Medium Large Medium
    Tajikistan Large Large Large Large
    Turkmenistan Large Large Large Large
    Uzbekistan Large Large Large Large
    Southern and eastern Mediterranean
    Egypt Large Medium Large Medium
    Jordan Large Large Medium Medium
    Morocco Medium Medium Medium Medium
    Tunisia Medium Small Medium Medium

  •   Natural resources Sustainable energy Electric power
    Central Europe and the Baltic states
    Croatia Small Medium Medium
    Estonia Negligible Medium Negligible
    Hungary Small Small Large
    Latvia Negligible Small Negligible
    Lithuania Negligible Small Small
    Poland Medium Small Negligible
    Slovak Republic Small Small Small
    Slovenia Small Small Small
    South-eastern Europe
    Albania Medium Medium Medium
    Bosnia and Herzegovina Large Large Large
    Bulgaria Medium Small Medium
    Cyprus Medium Medium Medium
    FYR Macedonia Medium Medium Medium
    Kosovo Large Large Large
    Montenegro Small Medium Medium
    Romania Small Small Medium
    Serbia Large Medium Large
    Turkey Small Medium Medium
    Eastern Europe and the Caucasus
    Armenia Medium Medium Medium
    Azerbaijan Medium Large Large
    Belarus Large Medium Large
    Georgia Large Large Medium
    Moldova Medium Small Large
    Ukraine Large Small Large
    Russia Large Medium Medium
    Central Asia
    Kazakhstan Large Large Medium
    Kyrgyz Republic Large Large Large
    Mongolia Large Medium Large
    Tajikistan Large Large Large
    Turkmenistan Large Large Large
    Uzbekistan Large Large Large
    Southern and eastern Mediterranean
    Egypt Large Medium Large
    Jordan Medium Medium Medium
    Morocco Large Medium Large
    Tunisia Large Medium Large

  •   Water and wastewater Urban transport Roads Railways
    Central Europe and the Baltic states
    Croatia Small Small Medium Medium
    Estonia Small Medium Medium Negligible
    Hungary Medium Small Negligible Small
    Latvia Small Small Medium Negligible
    Lithuania Small Small Medium Small
    Poland Small Small Small Small
    Slovak Republic Small Small Medium Medium
    Slovenia Small Small Medium Small
    South-eastern Europe
    Albania Large Large Medium Large
    Bosnia and Herzegovina Large Large Medium Small
    Bulgaria Small Small Medium Medium
    Cyprus Small Small Medium Not applicable
    FYR Macedonia Large Large Medium Medium
    Kosovo Medium Large Large Medium
    Montenegro Large Large Large Medium
    Romania Small Small Medium Small
    Serbia Large Large Medium Small
    Turkey Medium Medium Medium Medium
    Eastern Europe and the Caucasus
    Armenia Medium Medium Medium Large
    Azerbaijan Large Large Medium Large
    Belarus Large Large Large Large
    Georgia Large Large Medium Medium
    Moldova Large Medium Medium Large
    Ukraine Large Large Medium Large
    Russia Medium Medium Medium Small
    Central Asia
    Kazakhstan Large Large Medium Medium
    Kyrgyz Republic Large Large Large Large
    Mongolia Large Large Large Medium
    Tajikistan Large Large Large Large
    Turkmenistan Large Large Large Large
    Uzbekistan Large Large Large Medium
    Southern and eastern Mediterranean
    Egypt Large Large Medium Large
    Jordan Large Large Medium Large
    Morocco Large Large Medium Medium
    Tunisia Large Large Large Medium

  •   Banking Insurance and other financial services MSME finance Private equity Capital markets
    Central Europe and the Baltic states
    Croatia Small Small Medium Medium Small
    Estonia Small Small Small Medium Small
    Hungary Medium Small Small Small Small
    Latvia Small Small Small Medium Small
    Lithuania Small Small Small Medium Small
    Poland Small Small Small Small Small
    Slovak Republic Small Small Negligible Small Small
    Slovenia Medium Small Small Medium Small
    South-eastern Europe
    Albania Medium Medium Medium Large Large
    Bosnia and Herzegovina Medium Medium Medium Large Large
    Bulgaria Medium Small Medium Small Small
    Cyprus Medium Not available Medium Not available Small
    FYR Macedonia Medium Medium Medium Large Large
    Kosovo Medium Large Large Large Large
    Montenegro Medium Medium Medium Large Medium
    Romania Small Small Small Small Small
    Serbia Medium Small Medium Medium Medium
    Turkey Small Small Medium Small Small
    Eastern Europe and the Caucasus
    Armenia Medium Large Medium Large Medium
    Azerbaijan Large Medium Large Large Large
    Belarus Large Large Large Large Large
    Georgia Medium Medium Medium Large Large
    Moldova Medium Medium Medium Medium Large
    Ukraine Medium Medium Medium Large Medium
    Russia Medium Medium Large Medium Medium
    Central Asia
    Kazakhstan Medium Medium Large Medium Medium
    Kyrgyz Republic Large Large Large Large Large
    Mongolia Medium Large Large Medium Medium
    Tajikistan Large Large Large Large Large
    Turkmenistan Large Large Large Large Large
    Uzbekistan Large Large Large Large Large
    Southern and eastern Mediterranean
    Egypt Medium Medium Large Medium Medium
    Jordan Medium Medium Large Medium Large
    Morocco Medium Medium Large Medium Medium
    Tunisia Large Medium Large Large Medium

Source: EBRD.
Note: “Large” indicates a major transition gap. “Negligible” indicates standards and performance that are typical of advanced industrialised economies. A historical revision taking into account the availability of new data has been conducted for Jordan’s capital market sector. Please also note the correction for Poland’s capital markets sector which was previously misreported. The missing gaps for Cyprus will be added at a later date.