John Marangos conceptualizes the transition from a centrally administered economy to one based on market relations, thereby providing the basis of modelling the process. The transition is viewed as a holistic process. As such, it must incorporate first of all the reason for the adoption of market relations. Also the initial conditions of each country should be incorporated in the modelling process, in addition to the political and ideological structures. These elements of the transition process have been ignored in the transition economic literature.