PROJECT MANAGEMENT IN PUBLIC ADMINISTRATION OF TRANSITIONAL COUNTRIES Anna Baranskaya Moscow State University, School of Public Administration, Russia The paper is devoted to the widely used in the developed countries project-oriented approach. In transitional countries, especially in the governmental sphere, this approach is used to the lesser extent. However, it is able to provide transitional governments with effective tools for realizing changes. The paper is aimed at examining basic principles of project management and its peculiarities in public administration, as well as at analyzing spheres of the project management implementation in public administration, in particular in the transitional countries, at studying stages of project management maturity and knowledge, which is necessary in project management, and at discovering benefits and obstacles of project management in the transitional countries. During the research preceding the paper there were analyzed theoretical and practical aspects of the project management implementation both in business and governments. There were made interesting conclusions concerning specific characteristics of project management in the governmental sphere, which touch upon legal norms, a wide range of stakeholders, the usage of resources and establishing priorities. In the paper there was made a finding about the specific character of applying this approach in realizing changes in different spheres of life, in the organizational structure, in improvements of the infrastructure, of utilities, etc. There was made a significant conclusion about organizational aspects of the implementation of management by projects in public administration concerning the establishment of a coordination center – Program Management Office. It seems to us that the most principle conclusion made in this paper refers to benefits and discovered obstacles of applying project management in the transitional countries, i.e. knowledge, expensiveness and misunderstanding, as well more contradictory and intricate barriers as the transitional character of the developing countries, where some peculiarities of public administration display more evident than in the developed countries. There was emphasized that the introduction of project management in the transitional countries should proceed together with other transformations, what will give these countries an opportunity to achieve the same results as in the developed countries.