This document summarizes the key findings of the Life in Transition Survey conducted in 2006 across 28 transition countries and Turkey. It finds that while only 30% believe life is better now than in 1989, most people are satisfied with their current lives and believe the future will be better for their children. Support for democracy and markets is strong overall but varies across regions. Trust in institutions is generally low compared to before 1989 but higher for the presidency, armed forces, and courts. Corruption remains problematic especially in some public services. Education and pensions are top public spending priorities.

1. Life in
Transition
Office of the Chief
Economist
EBRD

2. Life in Transition Survey
29,000 households
surveyed in 28 transition
September 2006 countries,
plus Turkey
Public
spending
priorities
Joint project
with the World Questions
Bank include:
Corruption
Life Trust in
satisfaction public
Political, institutions
economic and
social values

3. Transition – past, present and future
100% Looking back, only
90% 30% of people believe
80%
that life is better now
70%
than in 1989
60%
Disagree
50% No view Today, more people
40% Agree are satisfied than
30% dissatisfied with their
20%
lives
10%
0%
Looking ahead, a
My household All things Children who majority of people
lives better considered, I are born now believe that the future
nowadays than am satisfied will have a
around 1989 with my life better life than will be better for their
now my generation
children

4. Younger people more upbeat than
older generation
Older generation has borne the brunt
of painful economic and political
reforms
Younger generation poised to reap
the benefits
100%
90%
80%
70%
60% Dissatisfied
50% No view
40% Satisfied
30%
20%
10%
0%
18-34 35-49 50-64 65+

5. The page of history has turned
Strong support for democracy and markets
More people support
democracy and market
economy than 40% 36%
alternatives 35%
But one in ten still 30%
20%
support a combination 25%
of planned economy 20% 10%
and authoritarian 15%
10%
government Planned economy
5% Doesn't matter
And one in five believe 0%
Market economy
that form of political
t
ov
r
cy
tte
ng
cra
and economic system ma
ria
mo
n’ t
does not matter for
rit a
De
es
t ho
Do
them
Au

6. … but significant variation across the
region
Percent of respondents who support market economy
80%
CEB countries
70%
clustered around
R2 = 0.6366
moderately high
60% support for both
democracy and
50%
markets
40% While support for
democracy and
30%
markets in SEE and
20% CIS+M varies more
20% 30% 40% 50% 60% 70% 80%
Percent of respondents who support democracy
widely
SEE CIS+M CEB

7. The better off tend to support
democracy…
Support for democracy,
by income group
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Low income Medium High income
income
Democracy Doesn't matter Authoritarian gov't

8. … as well as market economies
Support for market economy,
by employment
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Unemployed Employed
Market economy Doesn't matter Planned economy

9. Transition has eroded trust…
100%
Across the region, 90%
societal trust was 80%
stronger prior to 70%
1989
60%
Distrust
50% No view
In general, trust is 40%
Trust
low in the transition 30%
countries 20%
10%
LITS confirms 0%
previous survey Most people could Most people can be
be trusted prior to trusted now
findings in this field 1989

10. … but not for every institution
60%
40%
20%
Trust
0% Distrust
No view
-20%
-40%
-60%
Government
Parliament
Political
Police
Presidency
Forces
Banks
Courts
Armed
Parties

11. Corruption remains a problem…
quot;There is less corruption now than around 1989quot;
100%
90%
80%
70% 63% 63%
60% 75%
50%
40%
30% 17%
23%
20% 16%
10% 14% 19%
9%
0%
CEB SEE CIS+M
Agree No view Disagree

12. 0%
20%
40%
60%
80%
100%
Unemployment
benefits
Other benefits
Police
Infrequent
Courts
Official
documents
Sometimes
Public
education
Corruption in public services
… particularly in some sectors
Road police
Frequent
Public health
system

13. Public prioritises spending on human
capital
CEB SEE
Education Education
Pensions
Pensions
Housing
CIS+M
Housing
Education Health
Health
Pensions
Housing
Remaining categories are
Health ‘Environment’, ‘Public
infrastructure’ and ‘Other’

14. Life in
Transition
Office of the Chief
Economist
EBRD
www.ebrd.com/
economics