The main stages and content of the transition period in the economy

The transition in the economy from one type of system to another is a process, i.e. a sequential change of states. This process can be fast or slow, straight or zigzag, progressive or even regressive, but in any case it means time-consuming changes in the economy. In other words, the transition is a path and, as such, it has its stages.

The first, or rather, the zero stage of the transition process can be called its hidden (latent) stage, when the precursors of the transition more or less noticeably arise and multiply.

The first major stage of the transition period should be called the stage of the systemic-crisis state of the economy. Such a crisis is significantly different from periodic crises – “painful states” of the established economic system, which end with its recovery and further functioning while maintaining its “role”. The crisis stage of the transition period is a systemic crisis, i.e. the crisis of the economic system itself, its inability or inability to develop further.

The crisis stage of the transition can be more or less long, more or less destructive both for the economy and for society as a whole. But it is especially painful for the production sector, which is falling into a state of recession or decline, or even a complete loss of economic capacity. At the stage of the systemic crisis, the bulk of the population are especially affected, whose standard of living is falling so catastrophically that half or more people fall below the poverty line.

The crisis stage of the transition period, reflecting the dying of the system, is expressed in the crisis and its elements. Therefore, it covers the productive forces, which lose their effectiveness and even legal capacity, and economic relations in all their main links, and the driving forces of the system, and, of course, the coordination mechanism.

The second stage of the transition period of the system-wide type is the stage of struggle between new and old and relative stabilization.

At this stage, the elements of the new system begin to grow and strengthen. But the old forms and relations still exist and to a certain extent “work”. However, in a crisis, the old quickly weakens and is experiencing an increasing onslaught from new elements and forms. The new breaks the old, transforms it according to new attitudes, and also begins to form its new components. These processes in a certain period seem to be balanced, which leads to a relative stabilization of the general condition.

The third stage of the transition period is the stage of active creation of a new system and its approval. This is a crucial stage in the systemic transition. Until it takes place, it can hardly be said that the transition has occurred, and a new system has been formed. The specific content of the third stage may be different, it depends to a decisive extent on which new economic system replaces the old one, i.e. from what the transition is carried out.

The answer to these very difficult questions depends on a lot.

First, from global development trends.

Secondly, from the specific initial stage of the historical development of this country.

Thirdly, the national model of transition is predetermined by the natural (natural-geographical) features of a particular country.

Fourthly, the specific content and direction of the transition depend on the established socio-cultural traditions and values that are transmitted from generation to generation and determine the uniqueness of this country and its people.

Fifthly, political power, its orientation and will have a significant impact on these processes.

The complexity of the transition, therefore, is due to the fact that the transition from one economic system to another (especially in the specifics of our transformation) does not mean a simple repetition of the already known, universal model. This is most likely a transition to a new model, not yet worked out by experience and history, but objectively determined by the factors of national and socio-cultural specifics of the rebuilding countries. The state can and should catch, learn and take into account all these features during the transition period.

The transformations of the transition period are not only long in time, but also very complex in content, which is especially true for transformational transitions.

The main content of such a transition, and it, as noted, is a unique transition from one type of economic system to another, can be represented in the form of several components (or blocks). The main, key blocks of such transformations can be considered the following:

transformation and creation of new foundations of property, its diversity as the fundamental basis of the new economic system; economic liberalization, which is directly related to changes in the principles and methods of economic behavior of economic entities; institutional transformations – changes in the legal framework and the creation of a new system of economic management; structural transformations of the economy and its sectors; social transformations (changes in the social sphere and politics).

In the transition period, the economic security of the country is of particular importance, because only by maintaining such security can the state remain independent, and complex problems of its transformation and stabilization can be solved in the economy.

Economic security is understood as such a state of the economic system and its institutions, in which reliable (sufficient) protection of national economic interests from internal and external threats and negative influences is ensured.

Abroad, an assessment of economic security is given in certain areas of threats, say, economic crime, the shadow economy, currency transactions, etc., in total about 20 important indicators.

Russia has developed a draft system that includes about 600 indicators of economic security to track. This is an expansive approach.

The Republic of Belarus is developing a system that includes about 160 indicators of economic security, among them about 60 – especially important.

However, it is clear that even the most perfect system of such indicators alone will not be able to protect the economy and the country, to ensure their security. The main tool here, as world practice shows, is to strengthen and strengthen the economic potential of your country. And for the Republic of Belarus, which is not rich in natural resources, this potential is, first of all, its intellectual and scientific resources. To be able to mobilize them and skillfully use them is the most important task.