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The aim of Transition Report was to present and explain the main events, which have taken place in the process of socio/economic transition in Montenegro during nineties. The publication presents the major reforms that were implemented during the transition period as well as its results. In addition, report also points the need for future improvement of the business environment, further openness and internationalism, deregulation of macroeconomic activities and more efficient economic policy. The research was done in close cooperation with G17 Institute in Serbia, that in parallel prepared report for Serbia.