This paper attempts to portray a synthesis of what has been learned in the last ten years with regard to the transition process. It contrasts the mainstream ?Washington consensus? view of transition with the ?evolutionary institutionalist? perspective. It argues that the latter gives a more adequate and complete picture both of the transition processes and of economic systems and is of better help to prevent serious transition failures. It also argues that the latter yields a better understanding of capitalism as an economic system. The analysis has implications not only for transition but for development and reform in general.