The Economic Transformation of Slovenia

Seminar paper from the year 2012 in the subject Business economics - Economic Policy, grade: 1,3, European University Viadrina Frankfurt (Oder), course: Economic Transformation in Central and Eastern Europe, language: English, abstract: Slovenia is one of the best examples for a successful transformation. Founded in 1990, after leaving the communist Federal Republic Yugoslavia, it was one of the first new eastern member states of the EU and the first Eastern-European country which introduced the EURO in 2007. In this paper the transformation process of Slovenia will be analyzed in detail. After a review of Slovenia's history and its development in Yugoslavia, the initial conditions of the transformation will be described. In the following the transformation process will be dissected. Therefore the political transformation, the liberalization and the market transformation, the privatization and the developments in the financial sector will be portrayed before the entire transformation process will be evaluated. Furthermore the accession to the EU and the EURO zone will be examined, before two current problems, the demographic change and the financial crisis, will be analyzed. At the end of this paper stands a conclusion why Slovenia's transformation was successful and which parts of it fell short.