This book explores the economic and social development of the Western Balkan region, a group of six countries that are potential candidates for EU membership. It focuses on the key economic issues facing these countries, including the challenge of promoting economic growth, limiting public deficits and debt, and fostering international trade relations. Given the severe impact of the recent economic crisis on social welfare in the region, it also investigates the nature and extent of social exclusion, a factor likely to produce future political instabilities if not effectively addressed by a return to sustainable economic growth. The contributions explore these issues in light of the major influence of EU policy instruments and advice, which are currently guiding the economies along an accession trajectory to future EU membership.
The Western Balkans region has come a long way over the last two decades in achieving economic and social progress. With a population of 17.6 million, the region today boasts a combined gross domestic product (GDP) of close to EUR 100 billion, an average GDP per capita of about EUR 5 400 and a comprehensive process of integration with the European Union.
In this paper we analyze how Western Balkans public finances adapted to the boom-bust cycle. Large capital inflows into emerging European economies during the mid-2000s resulted in rapid economic growth and convergence to EU income levels. This also resulted in improved fiscal positions of most countries, on the back of strong revenue performance. Yet, since the onset of the global economic crisis, many countries have struggled to adjust to the new situation of lower external financing and lower growth.
Two main themes of the book are that (1) politics can distort optimal fiscal policy through elections and through political fragmentation, and (2) rules and institutions can attenuate the negative effects of this dynamic. The book has three parts: part 1 (9 chapters) outlines the problems; part 2 (6 chapters) outlines how institutions and fiscal rules can offer solutions; and part 3 (4 chapters) discusses how multilevel governance frameworks can help.
Fiscal rule frameworks have evolved significantly in response to the global financial crisis. Many countries have reformed their fiscal rules or introduced new ones with a view to enhancing the credibility of fiscal policy and providing a medium-term anchor. Enforcement and monitoring mechanisms have also been upgraded. However, these innovations have made the systems of rules more complicated to operate, while compliance has not improved. The SDN takes stock of past experiences, reviews recent reforms, and presents new research on the effectiveness of rules. It also proposes guiding principles for future reforms to strike a better balance between simplicity, flexibility, and enforceability. Read the blog
Government at a Glance: Western Balkans presents information on public governance in the Western Balkan region – covering Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia, and compares it to OECD and OECD-EU countries.
Developing and ‘transition’ economies face myriad challenges in their attempts to achieve and maintain political stability and foster the economic growth essential for national security, the social well-being of current citizens and sustainable environments for future generations. Governments in the Western Balkans have striven to achieve all of the above, and this volume assesses the nature of their experiences as well as the level of their success in doing so. Featuring detailed case studies of public policy reforms in the region as well as comparative analysis on a range of indicators, the book analyzes the role of key players in setting the political agenda as well as implementing policy reforms. It also distils the lessons that can be learned from the Western Balkan experience, recommending strategies for enhancing the policy making process. In addition, it examines the developmental role played by the full spectrum of policy actors, including the private sector, NGOs, special interest groupings, international financial institutions, donor nations and the EU. Each case study has been prepared by academics with deep knowledge and experience of the western Balkans and addresses a core set of questions: identifying the policy issue and its broader context, defining the roles of specific individuals in formulating policy and reform and assessing the influence of networks and coalitions in the policy making process. With so little detailed literature on public policy making in a group of nations strategically positioned between Europe, Russia and the near East, the detailed insights provided by this volume will be widely welcomed. Our book provides case studies of specific public policy reform episodes in selected Western Balkan post-conflict and transition countries. The focus of these case studies extends beyond the technical aspects and entails substantive examination of the policy actors, constituencies and politics that ultimately shape the policy that emerges from the policy making process. This analysis draws lessons for strengthening the quality of policies, the transparency, consistency, and governance of the policy making process and ultimately for contributing to economic and social development of the region.
The second edition of the Impact Evaluation in Practice handbook is a comprehensive and accessible introduction to impact evaluation for policy makers and development practitioners. First published in 2011, it has been used widely across the development and academic communities. The book incorporates real-world examples to present practical guidelines for designing and implementing impact evaluations. Readers will gain an understanding of impact evaluations and the best ways to use them to design evidence-based policies and programs. The updated version covers the newest techniques for evaluating programs and includes state-of-the-art implementation advice, as well as an expanded set of examples and case studies that draw on recent development challenges. It also includes new material on research ethics and partnerships to conduct impact evaluation. The handbook is divided into four sections: Part One discusses what to evaluate and why; Part Two presents the main impact evaluation methods; Part Three addresses how to manage impact evaluations; Part Four reviews impact evaluation sampling and data collection. Case studies illustrate different applications of impact evaluations. The book links to complementary instructional material available online, including an applied case as well as questions and answers. The updated second edition will be a valuable resource for the international development community, universities, and policy makers looking to build better evidence around what works in development.
Although at different stages of development, the countries of the Western Balkans—Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Montenegro, and Serbia—face similar challenges in transforming and modernizing their agricultural food production (agri-food) sectors. Their rural sectors have lagged behind the rest of the economy in growth and poverty reduction, their agri-food sectors are undercapitalized and highly fragmented, and their agro-processing capacities limited. Agricultural trade deficits are widening, climate change is posing increasing risks to farm incomes, and low-cost imports and changing consumer preferences are further eroding competitiveness. Added to this scenario are the challenges and opportunities of adopting the EU 'acquis communautaire' relating to agriculture. Based on recent World Bank reports prepared in collaboration with the Food and Agriculture Organization of the United Nations and the European Commission Directorate General for Agriculture and Rural Development, 'The Changing Face of Rural Space: Agriculture and Rural Development in the Western Balkans' identifies what is constraining agricultural competitiveness in these countries, examines public expenditures in agriculture, and diagnoses key challenges for agricultural policy makers. The book expands on previous findings to provide a strategic policy framework for transforming and modernizing the agri-food sector and, in the context of region’s ongoing process of integration with the European Union, creating a dynamic rural space in the Western Balkans. The book offers Western Balkan governments and international donors a shared vision of the goals and directions their agriculture and rural development policies and programs might take.
Small and medium-sized enterprises (SMEs) are essential drivers of sustainable economic growth in the Western Balkans and Turkey, where they make up 99% of all firms, generate 65% value added and account for 75% of employment. Nevertheless, SMEs across the region continue to face obstacles such as difficulties accessing financing, low levels of digital uptake, regulatory barriers and relatively low participation in international trade.
