New Countries and New Economies in the Balkans

Abstract

The newly created economies in the former Yugoslav space advance on the transition road with more or less success. Each of the former Yugoslav republics has implemented its own transition policy, encountering different economic, political and social opportunities, as well as constraints. From another aspect, certain important similarities are also evident. This paper aims to present divergent economic and transition policies implemented in the Yugoslav space, and different outcomes in building the new economies. Particular attention is paid to comparative analysis of the privatization process carried out in all of them. Finally, the paper analyzes the progress achieved in building market economy structures in the new states. The analysis supports conclusions that, regardless of the speed of liberalization and privatization, different transition outcomes may have been influenced in the short run by the initial conditions, but in the long run the most important factors have been macroeconomic policy and institutional and regulatory reforms.