Our objective in this book was to investigate empirically some of the key issues featuring in the discussion on economic transition in Eastern Europe and Central Asia. One of the main challenges here is that the key dimension of transition — a set of reforms corresponding to liberalization and institutional change — can be measured only in an imperfect way. We have to accept this as a limitation. Nevertheless, we think that conclusions based on empirical testing — even if imperfect — are better than statements which cannot be falsified. In the latter case, economic theories turn into ideologies; and ideologies, as with any other distorted representations of reality, lead to wrong policies.