Abstract

This chapter assesses progress made by China, the Lao People’s Democratic Republic (henceforth Laos), Vietnam, and Mongolia in their transition to a market-based system. It compares their progress to that of the economies of Central and Eastern Europe (CEE) as well as of the Baltics and the former Soviet Union (BRO). It also outlines future challenges to these economies. These countries have liberalized prices and exchange rates and are now firmly integrated into the world economy. Although they are very far from their initial positions, much still remains to be accomplished, especially in structural reform. But these economies are now on an irreversible path.1