The effects of globalization and neoliberal concept on economy development of countries in transition

Terms globalization and neoliberal concept appeared as two parallel processes in the second half of the twentieth century. These processes got support from the World bank, International Monetary Fund, the most developed countries and large companies from all around the world. During the nineties of last century transitional countries also accepted neoliberal concept whose basic postulation is that market should regulate all economic relations, and the state should be withdrawn from economic processes. However, numerous crises that arose after 2000 and an increase of inequality in the world brought basic postulates of these concepts into question. Because of that, future sustainable development must be based on joint action and coordination of market and state institutions in creation of states' economic growth.