On the aftermath of the dissolution of the Soviet Union, the newly independent republics had to face a choice over which economic system should be adopted, and how to implement the transition from a planned economy to market economy system.
The aim of this paper is to provide a brief overview of the transition process in the cases of Estonia and Lithuania, two countries with a similar history but with significant differences on the social, economic and cultural background. The two countries undertook two different sets of transition reforms: while the first country chose the path of the so called “shock therapy”, Lithuania opted for a more gradual transition. The paper will bring a comparative analysis of the two transitions and of its different outcomes after approxi-mately 25 years of transition.
Keywords: transition, post-soviet, Lithuania, Estonia, shock therapy.
JEL Classification: N.