The Western Balkans in the turmoil of global crisis

October 2010 | #04

by: Franjo Štiblar
pp: 32
ISSN: 2038-632X

Abstract

The Western Balkan countries are significantly exposed to the effects of global crisis because most of them are highly indebted abroad, posses in-sufficient hard currency reserves and experience high balance of payments deficits. Although the first wave of financial crisis (a fall in prices of new fi-nancial instruments) was not critical for them, the second wave in the form of credit crunch, collapse of exports and disruption of the inflow of remit-tances has significant impact. As a result, the economic activity is signifi-cantly slowing down in the region, regardless of relative satisfactory tourist season in some of countries in 2009. The negative economic developments will slow down the process of resolving conflicts in the region related to bloody dissolution of former SFR Yugoslavia. Inclusion of the elements of solidarism to their economic systems and policies could ease the catching-up of the region in the process of its reintegration to the developed Europe.

Table of contents

Abstract
1 Introduction
2 The vulnerability of the Western Balkans to the crisis
3 Who is feeling the crisis most?
3.1 Calculation results
3.2 The misery index
3.3 The economic situation index
4 How are the Western Balkans reacting to the crisis ?
4.1 Albania
4.2 Bosnia and Herzegovina
4.3 Croatia
4.4 Kosovo
4.5 Former Yugoslav Republic of Macedonia
4.6 Montenegro
4.7 Serbia
4.8 Conclusion
5 The impact of the crisis on the pacification of the Balkans
6 Solidarism as proper response for the Western Balkans
Literature
Other sources
Appendix

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