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Economic development in Europe and Central Asia (ECA) has been the story of the transition from plan to market, the advance of broad and deep structural reforms, and the emergence of private initiative as the main driver of growth. In less than three decades, a dozen ECA countries joined the European Union (EU). The successful transition of these countries to EU-integrated market economies with robust institutions and production structures illustrates just how far reforms have taken some countries in the region, including to high-income status. But the ambitious structural reform agenda of the 1990s has slowed in many middle-income countries in ECA, and their transition to market is still ongoing.

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