Stages of formation and development of the world economy. World economy Modern world economy

Contemporary world economy has come a long way of formation, thanks to the emergence of international trade. Since their inception, the states have traded with neighboring countries, first the Eurasian, then the world market was formed.

Stages of development of the world economy

With the help of an ordered list, it is easy to disassemble the main stages in the formation of the world economy. The complex process of the formation of the world market was influenced by certain causes or factors in the development of the world economy: international specialization and division of labor, migration of capital and labor resources.

Fig.1 “Money turns the world”

The emergence of international trade served as a powerful impetus to the development of the modern world economy.

  • Stage 1- the period of the power of the Roman Empire (I-II centuries BC - I century AD), the revival of trade between different peoples and states in its composition, a common Eurasian market is being formed.
  • Stage 2- the unification of countries in the global market from the 15th-17th centuries, from the period of the Great geographical discoveries, new American continents entered the economy of the world. The first colonies appeared, and international trade covered all regions of the world.
  • Stage 3- refers to the XVII-XVIII centuries, with the creation of the Royal Scientific Society in England in 1662 by Charles II, many technical inventions appeared, the transition from manual labor in enterprises to the use of machines began.
  • Stage 4- the development of the capitalist economy, at the turn of the XIX-XX centuries. events began that influenced the course of history, the industrialization of the agricultural economy began, a gradual transition to industrial production.

Rice. 2 Industrial era. Automotive production "Ford"

  • Stage 5- periods of peaceful development of the first half of the 20th century were replaced by bloody world wars. Countries were preparing for wars, the militarization of the economy, new industries appeared (energy, aluminum, petrochemicals). The period ends in 1945 with the emergence of the economy of capitalism and socialism.
  • stage 6- the peculiarity of the period is that Europe was recovering for a long time after the devastating World War II. Huge cash flows sent to other regions, to Southeast Asia, South Africa, Mexico and Brazil. In the economy of the "new industrial countries" in 1960-1980. there is a qualitative leap in socio-economic indicators.
  • Stage 7- in 1980-2000 new technologies appear, transnational corporations (TNCs) are formed, which have launched their activities in dozens of countries. The collapse of the socialist system of countries, the abolition of the socialist type of economic management, and the subsequent strengthening of the unity of the world economy.

Rice. 3 Contemporary post-industrial society

  • Stage 8, modern globalization of the world economy, unification of economies different countries based on the activities of transnational corporations. A modern “post-industrial” society is being formed, where the economy is dominated not by the production and agrarian component, but by the non-production sphere, credit and financial, services, management, and information technology.

Analysts of the world economy do not confine themselves to studying only its genesis and essence, but direct their thought and pen to assessing the further development of this process, its phasing. Indeed, in its formation and state of maturity world economy has come a long and difficult way, consistently ascending from the stage of formation to the stages of development. However, in the assessment of different authors, the criteria and chronological framework of the stages of formation and development of the world economy do not coincide. So, Professor V.K. Lomakin distinguishes three periods in the stages of the development of the world economy and the involvement of national economies in it. At the same time, the author abstracts from the analysis of the stage of formation and development of the world economy until the 20s of the XX century, confining himself to the characteristics of the evolution of commodity production.

Chronological data of the first period in the development of the world economy are determined by the 20-30s, which were characterized by crisis phenomena, general instability of foreign economic relations. The beginning of this period was laid by the First World War and the revolution in Russia.

The next period begins after the Second World War, when there was a new break in the social structure of the world economy in connection with the formation of the world socialist economy. The latter developed on a different socio-economic basis with the nationalization of industry, services, collectivization Agriculture, with a centralized control system within national economies.

Economic relations between states of different social systems were combined with confrontation and competition. During this period, the export of entrepreneurial capital within the world capitalist system is growing intensively, and the positions of world socialism in the world economy are being strengthened. By the 1980s, the socialist countries produced about 40% of the world industrial products, almost a third of world agricultural production, the share in world exports, and hence the trade turnover, approached one fifth.



The analyzed period of the development of the world economy is marked by two more important historical events: the colonial system was liquidated, which allowed young national (developing) countries to act as a new, third political and economic force in the world economy and strengthening the positions of transnational corporations in it.

VC. Lomakin assesses the last decade of the 20th century as the beginning of the third period in the development of the world economy. Its features are: an increase in the degree of development of geographical space; strengthening economic interaction and interdependence in Eastern European countries and republics former USSR; processes of formation and


the formation of economic and political structures close to Western states.

In the textbook "World Economy" edited by Professor A.S. Bulatov argues that the formation of the world economy began a very long time ago, but this process finally ended about a hundred years ago. It all started with international trade in ancient society. A great contribution to the development of world trade in goods and services was made by the active spread of market relations in Western Europe and other regions of the world in modern times, then the great geographical discoveries of the 15th-17th centuries, the emergence in the 19th century of the machine industry and modern means of transport and communication. Trade in goods and services on the world market was supplemented by the movement of mobile factors of production - capital, labor from one country to another. The world economy took shape at the turn of the XIX-XX centuries and went through a number of stages (periods) in its development: the period from the beginning of the First World War to the beginning of the 50s, the period of 50-70s, when integration groups (EU, CMEA) arose *, the process of internationalization was rapidly going on and on this basis, knowledge (technology), entrepreneurial abilities and entrepreneurial capital, socialist and developing countries began to claim their special role in the world economy.

The third period of the 80-90s for the most developed countries became the time of transition to the era of post-industrialization, for many backward countries - actively overcoming their economic backwardness (China and the newly industrialized countries), for the former socialist countries - a return to the market economy, for all countries - the liberalization of internal and external economic life and its globalization. Thus, as in the textbook by V.K. Lomakin "World Economy" and in the textbook "World Economy" edited by A.S. Bulatov, there are three chronologically coinciding periods of development of the world economy. It seems that there is no need to critically analyze these approaches to establishing the staging of the world economy. It will be more productive to present our understanding of the stages of formation and development of the world economy. We proceed from the fact that in the development of any living organism (and the world economy is such), each stage means the acquisition of qualitatively new features or characteristics as a result of the accumulation of previous quantitative changes. Based on such a general philosophical postulate, we also distinguish three stages in the history of the world economy: the stage of formation or formation and two stages of development. The first stage - the stage of formation - covers a historically long period from the ancient era to the end of the 19th - beginning of the 20th centuries. Its characteristic features were:

1. Origin and development foreign trade goods and services that formed the world market; 2. Change of merchant's capital in the sphere of foreign trade by trade; 3. The great geographical discoveries (XV-XVII centuries) and industrial Revolution(XIII-XIX centuries); 4. Completion

the process of formation of the world economy is associated with the territorial and economic division of the world, the formation of the colonial system of imperialism and the emergence of international monopolies - the subjects of the economic division of the world; 5. The stage of formation of the world economy is characterized by the formation of two types of states - metropolises and colonies, political, administrative and economic relations between which were built on the principle: first you drive me, and then I will ride you. It was a relationship of squeezing out excess profits in favor of the mother countries for new investments; 6. At the first stage, the world economy was formed and developed as a socially homogeneous and unified capitalist system, since the colonial periphery was drawn into the orbit of market production as a supplier of cheap raw materials, labor and cannon fodder for new colonial wars. This is how the world economy remained until the victory of the revolution in Russia, which split it into two socio-economic systems: capitalist and socialist, developing in diametrically opposite directions. Profound qualitative changes have taken place in the world economy, which have begun the second stage of its development.

Historically, the forces of socialism developed in breadth and depth in the second stage. The positions of the socialist countries in the world economy were growing, as we have already written about. At this stage, the essence of the world economy also changed. Now it represented the political, ideological and economic struggle of the states of the two world systems and their interaction.

However, the so-called perestroika at the core of the world socialization system - in the USSR (the second half of the 80s and early 90s) - began to be carried out by political ignoramuses who care about their own image abroad, but not about their own country and its people, whom , it turns out (according to their confession), properly and did not know, led to the historical loss of all the achievements of the country. This was skillfully used by alternative social forces both in the USSR and abroad. In the countries of Eastern Europe, as a result of "velvet" (bloodless) revolutions, political forces came to power that rejected socialism as a prospect for socio-economic progress. Yes, and the socialism of the Stalinist model, which was imposed on the peoples of these countries, over the forty years of its existence, has disappointed more than fascinated, more repelled than attracted not only the broad masses of the people, but also supporters of the socialist choice. The rejection of socialism by the Eastern European countries and Mongolia marked the beginning of the collapse of the world socialist system in Europe, culminating in the demise of the USSR as a geopolitical factor. The world economy has entered a new, third stage of its development. The most important qualitative change in the world economy should include the indisputable fact that it is again acquiring social homogeneity: it is becoming a market economy everywhere. This is its first feature. The second feature of the world economy at a new stage of development is the expanding multi-subjectivity, which


will be discussed in a later section of the tutorial.

Finally, the features of the modern world economy include relatively new trends, the characteristics of which are given in two topics of the international economic block of the book, and summarized in topic 4.

As the new stage in the development of the world economy unfolds and deepens, it will acquire other features and trends, and this is quite natural and understandable. But these new features and trends will be revealed only at a more mature, advanced stage in the evolution of the world economy as a single and changing system. The task of international economists will be their deep study, theoretical generalization and comprehension.

The world economy is a historical and political-economic category. This is due to the fact that each specific historical stage of its development corresponds to a certain scale and level of production, the internationalization of economic life and the socio-economic structure.

The evolution of the world economy covers several centuries and includes a number of stages depending on the level of development of the world economy.

The first stage - XV-XVI centuries. The great geographical discoveries led to the formation of the world colonial system (territorial redistribution of the world) as one of the conditions contributing to the economic unification of countries and the rapid development of trade between metropolitan states and colonial states. The latter represented the "periphery" of the world economy (MX). There was a "price revolution" and the primitive accumulation of capital began. On the basis of the development of world trade, the world capitalist market was born, the basis for which was the development of manufactory. However, it was very limited in terms of the scale of trade and remained a sphere for the application of merchant capital. Development methods are extensive, based on colonialism.

The second stage - the XVII-first half of the XIX century. The formation of the world capitalist market, the emergence and development of the international division of labor (MRT). The material basis for the development of MRT was the industrial revolution, the bourgeois revolutions and the transition from a manufactory to a factory production system. This was required by the revealed discrepancy between the own narrow handicraft and manufacturing production base of individual countries and the market needs of MX. The world market was formed as a form of ME manifestation. The development of world trade was accompanied by the emergence of other forms of international economic relations such as the export of capital.

The third stage in the development of the world economy is the modern one - the middle of the 19th-early 20th centuries. This period was characterized by numerous and extremely important processes that took place in the MX and MEO system. This period began with the industrial revolution and the formation mass production. In this regard, there was an increase in the interdependence of the economies of all countries on the basis of MRI and the further development of world trade. Such forms of international economic relations as the international migration of factors of production, the world monetary and financial system appeared and began to develop. Such trends in the evolution of MX as the internationalization of industry, and then economic life, transnationalization, globalization, international economic integration, emerged as global problems of mankind, scientific and technological progress (STP). Intensive methods of development have appeared (and the need to strengthen them). It was then that the world economic system arose for the first time.

The strengthened share capital of Western countries has become cramped within the domestic market. In pursuit of new profits, he rushed to other countries. The intensified export of capital and extensive international exchange gave rise to international monopolies. They divided among themselves world sales markets, sources of raw materials and areas of capital investment economically. This was done through contracts, leases, concessions, and the like. The division of the world economic space has created an opportunity for big capital to extract monopoly superprofits in the territories of an increasing number of countries. At the same time, this stage in the development of MC was characterized by increased competitiveness and inconsistency between MC and MEA.

The fourth stage - 1914-1930s - First World War, destruction of production and destruction of human resources; socialist revolution; world economic crisis("Great Depression") and the objective need for state regulation of the economy, the emergence of the theory of J.M. Keynes; rupture of economic ties and tendencies towards autarky, violation of the integrity of the world economy; decrease in production and export by 1.5-2 times.

Fifth stage - 1939-1945 - World War II, the economic plunder of states and the physical destruction of human resources; the emergence of state regulation of the economy. The emergence of the world socialist economic system (a new break in the structure of the world economy, the formation of two types of "world economies"). Curtailment or rupture of world economic ties between the two "world economies" in combination with their partial restoration (decrease in the export of capital and goods, the complexity and inconsistency of the interaction of the two systems). Post-war reorganization of the IEO and the emergence of international organizations, including the UN, the IMF, etc.

Sixth stage - 1950s-1960s - the collapse of the world colonial system. The emergence of a large group of developing countries and the formation of new relations between them and the countries of the "first" and "second" world. Further integration of production and capital, strengthening of transnationalization processes. The emergence and development of international economic integration, including the CMEA and the EEC. Level alignment economic development in Western countries and increased rivalry between the US, Western Europe and Japan.

Stage seven - 1970s-1980s - a sharp drop in pace economic growth world economy due to "oil shocks" and fuel and energy crises. Strengthening the importance of scientific and technological revolution.

Stage eight - 1990s - the collapse of the world socialist system and the USSR. Strengthening economic interaction and interdependence of the countries of the world. The world economy is acquiring the features of a single integral formation, complementarity. Development and deepening of scientific and technological revolution, internationalization of economic life, international economic integration, transnationalization of MX based on MRI. The revitalization of the activities of transnational corporations (TNCs), in fact, means the economic division of the world. This stage is associated with the globalization of the world economy and the transition of key positions in its development to TNCs and transnational banks (TNBs). Globalization of markets.

Modern world social development is characterized by the strengthening of ties and interaction between countries. The trend towards unification is caused by the need to solve global problems facing humanity, such as the threat of a nuclear catastrophe, environmental problems, health care and space. But the deepest basis for strengthening the integrity of the world is the growing interdependence of states in economic sphere. No country in the world can claim full-fledged development if it is not drawn into the orbit of world economic relations.

The emerging world order is increasingly manifesting itself as an economic order. The global economy is slowly becoming a ubiquitous imperative. If earlier the world economy was a field on which sovereign states operated, now the world economy is turning into an independent entity operating on the field of nation states.

The modern world economy is heterogeneous. It includes states that differ in social structure, political structure, level of development of productive forces and industrial relations, as well as the nature, scale and methods of international economic relations.

The development and improvement of world economic relations is a rather complex, contradictory process. Its essence is that the movement towards economic independence and the strengthening of individual national economies in modern conditions inevitably leads to an ever-increasing internationalization of economic life, an increase in the degree of openness of national economies and an increase in their interdependence based on a further deepening of the international division of labor.

The international community brings together states that have their own national and economic identity. The main criteria that distinguish the various economic systems, are the possibilities of using advanced technology and production technology, as well as the degree of mastery of the principles of the market structure of the economy.

Analysis retrospective indicators the world economy as a whole over the past century indicates the unevenness of world economic development. According to statistics, the main increase in the world gross product and foreign trade took place in the second half of the 20th century. From 1900 to 1950, the absolute volume of total GDP increased by about 3 times, and world exports of goods increased by the same amount. In subsequent decades (from 1950 to 2000), world production and exports increased by 6 and more than 11 times, respectively. The average annual GDP growth rate increased from 2.2% in the first half of the century to 3.7% in the second. It should be noted that world exports of goods, which previously developed at about the same pace as world production, have grown over the past five decades more than twice as fast as global GDP. It is thanks to the accelerated development of the world economy and trade that there has been a noticeable increase in the general standard of living of the population of the Earth, its provision with food resources and material benefits.

With the transition to the post-war stage of restoration and development, the picture became immeasurably more complicated. In addition to the fact that there was a twofold increase in the rate of world economic growth and a threefold increase in world trade in the post-war fifty years compared with the previous one, the growth in the scale of the gross domestic product produced in the world was accompanied in these years by profound qualitative changes.

There was a complete restructuring of the technological base of world production, which led to major shifts in its sectoral structure. The dependence of national economies on international trade in goods and services, the cross-border movement of capital and labor, the export and import of knowledge, technology, and information has sharply increased. The internationalization of production and capital, the enormous expansion of the activities of transnational corporations, the creation of economic regional associations countries have become the most important factors of economic growth and development. The overall efficiency of the world economy has increased, which has created objective prerequisites for noticeable social progress not only in the developed part of the world, but also on its periphery.

According to the forecast for the development of the world economy until 2015, developed by a team of scientists from the Institute of World Economy and International Relations of the Russian Academy of Sciences (IMEMO RAS) under the guidance of Academician V.A. Martynova and corresponding member. RAS A.A. Dynkin, the acceleration of economic growth in the second half of the twentieth century is a fundamental characteristic community development world at the beginning of the 21st century. It is predicted that the growth rate of world GDP will increase from 2.7% in 1989-2000. up to 3.7% in 2001-2015


The world economy is a historical and political-economic category, since each stage of its development corresponds to a certain scale and level of production, the internationalization of economic life and the socio-economic structure.
There is no clear periodization of the stages of the world economy.
Some researchers attribute the emergence of the world economy to the time of the Roman Empire, others - to the time of the Great geographical discoveries (XV - XVI centuries), which led to the accelerated development of international trade. However, the world economy of this period was limited, remaining the sphere of application only of merchant capital.
A developed world economy arose in the middle of the 19th century, after the industrial revolution, in the course of the development of capitalism into its monopoly stage. The development of machine production in Western countries, a sharp increase in the number of goods produced and the growth of international trade, led to the formation of a world market and the entry of most countries into regular trade relations.
This stage of the formation of the world economy is characterized by an increase in exports of products, an increase in the flow of international labor migration, and an increase in international capital flows.
In fact, by the beginning of the 20th century, the territorial division of the world was completed, international monopolies were formed, the process of socialization of production acquired a global character. The world economy at the beginning of the 20th century consisted of the industrialized countries of the West and their agrarian and raw material colonies.
In the development of the modern world economy in the XX - XXI centuries. and the involvement of national economies in it, the following periods are distinguished:

The first period (10s - 30s of the 20th century) is characterized by crisis phenomena in the world economy:
a) the instability of economic ties caused by the First World War (fall in the export of goods, capital, the transfer of national economies to the production of military products, the physical destruction of production and human resources, etc.);
b) the revolution of 1917 brought Russia out of the sphere of the world economy, and then Mongolia, was accompanied by an economic blockade by Western countries, led to the emergence of two types of world economy - capitalist and socialist;
c) the world economic crisis (1929 - 1933) led to a decrease in the export of capital goods to the MX, increased the importance national spheres production and marketing.

The second period (late 1940s - 1980s) is characterized by the following phenomena:
1. The formation of the world socialist economy after the Second World War led to a change in the structure of the world economy. In the context of confrontation between two social systems at this stage:
a) economic ties between the states of the two systems (capitalist and socialist) were complex and contradictory, accompanied by confrontation and competition;
b) foreign economic relations within the bloc of socialist countries were of a specific nature, dictated by a rigidly centralized system of government;
c) there was an increase in interrelations between the capitalist countries, which was characterized by the following changes in the world economy:
- there was an intensive growth in the export of entrepreneurial capital, an increase in foreign production, which had a significant impact on the development of transnational corporations (TNCs), strengthening their role in the world economy;
- The United States, which sharply increased in its economic power during the Second World War, for political reasons, provided significant assistance to the countries of Western Europe in reviving their economies (Marshall Plan).
Thus, during this period, the foundation was laid for the further development of the world economy in the direction of strengthening its integrity on the basis of mutual cooperation between the capitalist countries.
2. The collapse of the colonial system (early 60s of the twentieth century) led to the emergence in the world economy of a large group of developing countries that began to receive economic assistance from capitalist countries in order to maintain them in the market economy system, to prevent their transition to a socialist camp.
3. Rapprochement of the levels of economic development of the USA and other industrialized countries (70-80s of the XX century). The global economic dominance of the United States has been replaced by a multipolar system of the world economy, which has intensified competition between the three centers of the world economy: North America (led by the United States), Western Europe, and Southeast Asia (led by Japan).
4. Crisis period in the world economy (70-80 years of the twentieth century). Energy, commodity, currency and other crises led to a sharp rise in prices for certain types of raw materials, fuel, instability of the monetary system. However, these phenomena were not accompanied by a sharp decline in world economic ties, as was the case in the 1920s and 1930s, since by that time the world economy had acquired a fairly homogeneous global market character.

The beginning of the third period, which continues to the present, refers to the 90s. XX century. After the collapse of the USSR in 1991 and the rejection of the socialist path of the countries of Eastern Europe, the world economy begins to acquire the features of a single holistic entity.
This stage in the development of the world economy is associated with the transition to a new way of social production - a post-industrial, information and scientific society, seeking to combine the achievements of modern scientific and technological revolution with an increasingly socially oriented market mechanism.
The world economy of the beginning of the XXI century. global in scope, entirely based on the principles of a market economy, the objective laws of the international division of labor, the internationalization of production.
The characteristic features of the modern world economy are:
globalization, that is, the inclusion of almost all countries in it;
unity and inconsistency of development: the desire of countries to create common global markets for goods, services, capital, technology, labor is complicated by the emerging contradictions between the three centers developed world, between them and the rest of the world, between integration groups, etc.;
exacerbation of competition to global scale and the simultaneous development of global cooperation;
development of the international movement of factors of production in the form of migration of capital, labor, technology;
creation on this basis of international production located in various countries (primarily within the framework of international companies);
the growing role of international corporations as subjects of the world economy and their gradual transformation into the main subjects that determine the dynamics and geographical directions of world economic relations;
leveling the levels of socio-economic development of countries and convergence of the sectoral structure of their economies;
liberalization of foreign economic policy of states;
creation of an international regulatory framework for the implementation of foreign economic cooperation in the world economy;
creation of a system of supranational regulation of economic relations between countries in the form of international (world and regional) organizations (GATT / WTO, IMF, World Bank Group, ILO, etc.);
evolution of the national economies of most countries from closed system openly.

Lecture, abstract. Stages of formation and periods of development of the world economy - the concept and types. Classification, essence and features. 2018-2019.

The world economy began to take shape a long time ago. It all started with world trade.

world trade is the aggregate of foreign trade of all countries of the world.

At the earliest stages of human history, entire peoples could directly come into contact with each other. Such contacts arose during migrations, mass exoduses from natural disasters, during the forceful division of territories, exchanges.

The inhabitants of the first state in the world (Egypt) 5 thousand years ago traded with neighboring tribes, buying wood, metals, livestock from them in exchange for handicraft and agricultural products. They also organized expeditions for the economic development of new lands. At the same time, the tribes living on the territory of Russia exchanged goods with neighboring tribes.

Traders in services began to join the international trade in goods. Phoenician and Greek merchants not only traded goods throughout the Mediterranean, but also provided services for the transport of goods and foreign passengers.

The region of the Mediterranean and the Black Sea, together with the adjacent countries of Western Asia, became the region of the world where the core of the world economy was born in ancient times. Gradually others joined him. economic regions world - first South Asia, then Southeast and East Asia, Russia, America, Australia and Oceania, areas of Tropical Africa.

A great contribution to the development of world trade in goods and services was made by the active spread of market relations, the great geographical discoveries of the 15th-17th centuries, the emergence in the 19th century of the machine industry and modern means of transport and communication.

The expeditions of Columbus, Vasco da Gama, Magellan, Yermak pushed the limits of the world market many times over, adding new regions to it. Economic ties with these regions were strengthened after the start of mass factory production of finished products in the 19th century. first in Western Europe, and then in North America, Russia and Japan. These were simple and cheap consumer goods. Steamboats, railways, telegraph contributed to their sale.

As a result, by the end of the XIX century. a global market for goods and services. Russia acted on it primarily as an exporter of grain and other agricultural products, as well as timber in Western Europe, a supplier of finished products to Asian countries. Imported Western European finished products, materials and semi-finished products.

At the same time, the movement of factors of production (capital, labor, entrepreneurial abilities, technology) intensified in the world.

streams economic resources went in one direction - from the most developed countries to the least developed. British, French, Belgian, Dutch and German capital was a prominent element in the accumulation of capital in America and Russia, emigrants from Europe mastered the expanses of North America, South Africa, and Australia.

Then the process of moving economic resources became more complex: capital, entrepreneurial abilities and technology began to be not only imported, but also exported by medium-developed countries, and underdeveloped countries also actively participated in the export of labor. As a result, the international movement of factors of production becomes mutual.

After the world economy took shape at the turn of the XIX-XX centuries, it has undergone significant changes.

1st period - from the beginning of the First World War to the beginning of the 50s. 20th century It is characterized by the curtailment of world economic ties (wars, revolutions, the crisis of the 30s) in combination with their partial restoration in the 20s. and after World War II.

2nd period - 50-70s. The emergence of integration groups (EU, CMEA), the process of transnationalization is underway, the active transfer of technologies, entrepreneurial abilities and capital, the world loan capital market has recovered. The socialist and developing states began to lay claim to a special role in the world economy.

3rd period - 80-90s. Developed countries are moving into an era of post-industrialization, many developing countries are overcoming the economic backlog (China and NIS), former socialist countries are moving to a market economy.