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Abstract
In examining the welfare situation, this paper explores the relationship between economic changes and social development in Asian transition economies. Under the central planning system, achievements in human development in these countries were commonly greater than the level of economic development might have indicated. This pattern, however, no longer stands true during transition. Human development tends to suffer or not to have corresponding improvement not only because of economic performances, but also as a result of inadequate social policies. The research emphasises human welfare as the ultimate goal of transition, suggesting a need to move away from a one-sided focus on economic growth to a people oriented approach through the adoption of policies which place the well-being of the population at the centre of transitional and development strategies.