The 15 years of transition economies was the dual process of evolutionary transformation and economic integration. At present countries of transition economies are divided into the group of Central European and Baltic countries that attained the EU accession in 2004 and other countries. While to the former the transition process reached a provisional goal, other countries have still indeterminate future in the path of transition. This paper examines a series of evolutionary problems in the transition from the socialist planned economy to the market economy and argues the deficiency of endogenous view of transition. It is not denied that an evolution toward "market socialism" and "workers' control" might have developed if there had been no political revolution around 1989. However, the concept of evolution of "market socialism" and "workers' control" that retained the ideological heritage of socialism turned out to be untenable under the totally changed political constellation. The anomalies of capitalistic development, "insider privatization", "pseudo finance capitalism", and "recombinant ownership" emerged in the initial phase and some argued that a peculiar capitalism of East-European type would grow with these features. However, these features were soon marginalized by the dominant foreign capitals in the second phase. The items of the Transition Indicators of the EBRD are classified in "initial phase reforms" and "second phase reforms". The former include "price liberalization", "foreign exchange and trade", and "small-scale privatization". These are reforms that open transition economies to the world economy without substantial change. The real constructive changes are in the "second phase reforms", i. e. "large-scale privatization", "governance and enterprise restructuring", "competition policy", "infrastructure reforms", "banking and interest-rate liberalization", and "securities market and non-bank financial institutions". The second phase of transition started in the mid of 1990s after the recovery of the "transition recession". The making of market-supporting institutions was stressed and its progress was monitored annually. To understand the evolution of economic systems in the second phase of transition, a relocation of the evolutionary view that enables it to contain economic integration is needed. Finally this paper stresses the dual structure of governance in the transition/integration process - international as well as domestic governance - that guided accession countries around 2000 and prognoses the development of multi-layered governance in the framework of EU in these countries.