Country-level transition indicators
Alongside the sector-level transition scores discussed above, the traditional country-level transition indicators – which cover cross-cutting issues such as privatisation, liberalisation and governance – have been retained (see Table S.7). However, only a few developments in the past year have warranted changes to those scores, either up or down. There have been just three changes: a downgrade for Russia in the area of trade and foreign exchange, and upgrades for Croatia and Montenegro in the area of competition policy.
Russia’s downgrade comes against the backdrop of Western sanctions resulting from the crisis in Ukraine and the countermeasures adopted by Russia in response. The Russian authorities have introduced a one-year import ban with effect from August 2014 targeting EU food products. Separate measures include a ban on imports of Ukrainian food products, including dairy and confectionery. In addition, a number of temporary measures have been adopted over the past year that affect agricultural and manufacturing imports. As a result, Russia’s score has been reduced from 4 to 4-.
Meanwhile, Croatia has been upgraded from 3 to 3+ in the area of competition in light of the country’s accession to the EU and the important amendments to the country’s Competition Act that entered into force in mid-2013. These amendments include the provision of greater clarity regarding the separation of powers and responsibilities between the competition authority and the courts. Croatia has also strengthened the procedures governing raids conducted by the competition authority, which may be associated with firmer and more frequent enforcement of antitrust rules. In Montenegro, the establishment of a fully independent competition authority has led to an upgrade of the competition policy indicator from 2 to 2+. This upgrade is underpinned by signs of increasing prosecution of cartels, despite deficiencies in terms of resources and the resulting enforcement levels.
Country-level transition indicators 2014
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Large-scale privatisation Small-scale privatisation Governance and enterprise restructuring Central Europe and the Baltic states Croatia 4- 4+ 3+ Estonia 4 4+ 4- Hungary 4 4+ 4- Latvia 4- 4+ 3+ Lithuania 4 4+ 3 Poland 4- 4+ 4- Slovak Republic 4 4+ 4- Slovenia 3 4+ 3 South-eastern Europe Albania 4- 4 2+ Bosnia and Herzegovina 3 3 2 Bulgaria 4 4 3- Cyprus 4- 4+ 3 FYR Macedonia 3+ 4 3- Kosovo 2- 3+ 2 Montenegro 3+ 4- 2+ Romania 4- 4- 3- Serbia 3- 4- 2+ Turkey 3+ 4 3- Eastern Europe and the Caucasus Armenia 4- 4 2+ Azerbaijan 2 4- 2 Belarus 2- 2+ 2- Georgia 4 4 2+ Moldova 3 4 2 Ukraine 3 4 2+ Russia 3 4 2+ Central Asia Kazakhstan 3 4 2 Kyrgyz Republic 4- 4 2 Mongolia 3+ 4 2 Tajikistan 2+ 4 2 Turkmenistan 1 2+ 1 Uzbekistan 3- 3+ 2- Southern and eastern Mediterranean Egypt 3 4- 2 Jordan 3 4- 2+ Morocco 3+ 4- 2+ Tunisia 3 4- 2 -
Price liberalisation Trade and foreign exchange system Competition policy Central Europe and the Baltic states Croatia 4 4+ 3+ ↑ Estonia 4+ 4+ 4- Hungary 4 4 3+ Latvia 4+ 4+ 4- Lithuania 4+ 4+ 4- Poland 4+ 4+ 4- Slovak Republic 4+ 4 3+ Slovenia 4 4+ 3- South-eastern Europe Albania 4+ 4+ 2+ Bosnia and Herzegovina 4 4 2+ Bulgaria 4+ 4+ 3 Cyprus 4+ 4+ 4- FYR Macedonia 4+ 4+ 3- Kosovo 4 4 2+ Montenegro 4 4+ 2+ ↑ Romania 4+ 4+ 3+ Serbia 4 4 2+ Turkey 4 4+ 3 Eastern Europe and the Caucasus Armenia 4 4+ 2+ Azerbaijan 4 4 2- Belarus 3 2+ 2 Georgia 4+ 4+ 2 Moldova 4 4+ 2+ Ukraine 4 4 2+ Russia 4 4- ↓ 3- Central Asia Kazakhstan 4- 4- 2 Kyrgyz Republic 4+ 4+ 2 Mongolia 4+ 4+ 3- Tajikistan 4 4- 2- Turkmenistan 3 2+ 1 Uzbekistan 3- 2- 2- Southern and eastern Mediterranean Egypt 3+ 4 2- Jordan 4- 4+ 2 Morocco 4 4- 2 Tunisia 4 4 3-
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). Upward and downward arrows indicate one-notch upgrades and downgrades relative to the previous year.