The transition from socialist to market-oriented economies requires in most of these countries a major reform of the functions and of the role of the central bank, the introduction of private sector banking institutions driven by the profit motive, the development of financial markets, and the acceptance of macroeconomic monetary policies that played no role in the previously centrally-planned systems.
In these countries, it was necessary to introduce certain basic minimum requirements first, such as a recognised system of business laws including corporate, bankruptcy, contract, consumer protection and private property laws that can be consistently enforced and will provide a mechanism for fair resolution of disputes.