Return of the industry to the Western Balkan and the credit market

Abstract

Outward orientation is that the structuring of a new model of industrial development in Western Balkan countries must be carried out in accordance with the European concept of endogenous, autopropulsive and self-sustainable development based on scientific knowledge. The main purpose of this paper is to discuss specific aspects of the structuring of credit markets in the support of the new model of development of export industries in their countries. The research methodology is based on the hypothesis that the solutions for the development of good credit markets for their finance should look, instead of strict regulation, a solid legal framework, and a comprehensive state interventionism, in self-regulation based on the development of a culture of trust. Among the major obstacles were identified: (1) underdevelopment (authentic) national manufacturing entrepreneurs, and (2) the dominance of distribution-oriented coalitions in the disposition of added value and wealth. A key conclusion is that the problem of structuring of the (good) credit market for industrial finance in the Western Balkan countries must be considered in the chain of three phenomena the creation, advancement and defense of common interest in implementing the following activities: (1) promotion and development of business culture in which the timely fulfillment of financial obligations has a key position, (2) promotion and development of new techniques for the assessment of creditworthiness, (3) completing the legal and institutional infrastructure for the implementation of collateralized credits for equipment and reproduction material, (4) promotion of new forms of credit transfer rights private property in order to create more efficient production-organizational structure of the industry, and (5) finding new solutions for the financing of export projects based on the generation and implementation of medium and high technologies.