Sustainable development in transition economy: trends and costs

Abstract

The article deals with changes in economic, social and ecological fields caused by transformation of command economy relations into market economy relations. The reforms being carried through are unprecedented as until then nothing similar had occurred in the world and nobody was able to conclude an explicit plan or rules of reforms or to make precise estimations. Now, 15 years later, the results of the reforms that often were being carried through in a chaotic way and without clearly defined strategies may be reviewed. The processes and cardinal changes that took place in political, social and economic spheres covered all fields of life and had major impact on economic, physical, social, and human resources. Based on empirical data on income, energy consumption, pollution variation and some social indicators of Lithuanian residents, the article examines economic, ecologic and social components of development and, grounded on models, carries out the analysis of their evolution and the compatibility of processes with the priorities of sustainable development. The aim of the article is to assess the present social-economic situation, trends and threats that might have significant negative influence over further course of reforms.