Assessing regional integration and business potential in the Western Balkans

This paper extrapolates the patterns and volume of business development within the Western Balkans region. This is a war-torn area with social, cultural, religious and political specificities. Despite noticeable institutional and growth progress of the individual countries, regional business is still lagging as persistent state rigidities create trade distortions. We argue that intra-regional business clusters, embedded in shared socio-cultural characteristics, can be the alternative to underdevelopment. Political willingness is the prerequisite, as market forces in transitional areas seem to be of secondary importance to regional business development and integration. New analytical approaches are needed to capture the complex reality.Regional development; business clusters; transition economies

Beyond Physical Threats: Cyber-attacks on Critical Infrastructure as a Challenge of Changing Security Environment – Overview of Cyber-security legislation and implementation in SEE Countries

States, organizations and individuals are becoming targets of both individual and state-sponsored cyber-attacks, by those who recognize the impact of disrupting security systems and effect to people and governments. The energy sector is seen as one of the main targets of cyber-attacks against critical infrastructure, but transport, public sector services, telecommunications and critical (manufacturing) industries are also very vulnerable. One of most used example of cyber-attack is the Ukraine power grid attack in 2015 that left 230,000 people without power for up to 6 hours. Another most high profile example of a cyber-attack against critical infrastructure is the Stuxnet computer virus (first used on Iranian nuclear facility) which could be adapted to attack the SCADA systems (industrial control systems) used by many critical infrastructures in Europe.Wide range of critical infrastructure sectors are reliant on industrial control systems for monitoring processes and controlling physical devices (sensors, pumps, etc.) and for that reason, physical connected devices that support industrial processes are becoming more vulnerable. Not all critical infrastructure operators in all sectors are adequately prepared to manage protection (and raise resilience) effectively across both cyber and physical environments. Additionally there are few challenges in implementation of protection measures, such as lack of collaboration between private and public sector and low levels of awareness on existence of national key legislation.From supranational aspect, in relation to this papers topic, the European Union has took first step in defense to cyber threats in 2016 with „Directive on security of network and information systems“ (NIS Directive) by prescribing member states to adopt more rigid cyber-security standards. The aim of directive is to improve the deterrent and increase the EU’s defenses and reactions to cyber attacks by expanding the cyber security capacity, increasing collaboration at an EU level and introducing measures to prevent risk and handle cyber incidents. There are lot of other „supporting tools“ for Member States countries, such as European Union Agency for Network and Information Security – ENISA (which organize regular cyber security exercises at an EU level, including a large and comprehensive exercise every two years, raising preparedness of EU states); Network of National Coordination Centers and the European Cybersecurity Industrial, Technology and Research Competence Centre; and Coordinated response to major cyber security incidents and crises (Blueprint) with aim to ensure a rapid and coordinated response to large-scale cyber attacks by setting out suitable processes within the EU.Yet, not all Member States share the same capacities for achieving the highest level of cyber-security. They need to continuously work on enhancing the capability of defense against cyber threats as increased risk to state institutions information and communication systems but also the critical infrastructure objects. In Southeast Europe there are few additional challenges – some countries even don\u27t have designated critical infrastructures (lower level of protection; lack of „clear vision“ of criticality) and critical infrastructures are only perceived through physical prism; non-EU countries are not obligated to follow requirements of European Union and its legislation, and there are interdependencies and transboundary cross-sector effects that needs to be taken in consideration. Critical infrastructure Protection (CIP) is the primary area of action, and for some of SEE countries (like the Republic of Croatia) the implementation of cyber security provisions just complements comprehensive activities which are focused on physical protection.This paper will analyze few segments of how SEE countries cope with new security challenges and on which level are they prepared for cyber-attacks and threats: 1. Which security mechanisms they use; 2. The existing legislation (Acts, Strategies, Plan of Action, etc.) related to cyber threats in correlation with strategic critical infrastructure protection documents. Analysis will have two perspectives: from EU member states and from non-EU member states point of view. Additionally, for EU member states it will be analyzed if there were any cyber security legislation before NIS directive that meets same aims. The aim of research is to have an overall picture of efforts in region regarding cyber-security as possibility for improvement thorough cooperation, organizational measures, etc. providing also some recommendations to reduce the gap in the level of cyber-security development with other regions of EU.</p

The Chinese position as a global player in international comparison with the WTO members: Efficiency analysis and 4IR

During the last quarter-century, globalisation processes affected changes in the world economy in the form of intensifying competition in the international and internal markets. The result is the creation of a global marketplace that is mostly indifferent to national borders and governmental influences. This development has generated widespread interest in competitiveness. Competitiveness affects international relations, especially nowadays, given the changing position of the global leaders and the growth of new economic powers such as China. China has come a long way and has the opportunity to be a global leader in several required fields that will be the cornerstones of global growth in the next decades. Led by China, emerging economies are increasing their share in the worldwide economy and intensifying competition in nearly all sectors. It creates new threats and challenges for players in the global economy, and growing competitiveness must be efficient. The article evaluates the Chinese competitiveness in comparison with the World Trade Organization members by the Data Envelopment Analysis in the pre-in-post crisis period and considering the Fourth Industrial Revolution shifting humanity into a new phase.Web of Science6148

Macroprudential stress-testing practices of central banks in central and south eastern Europe : an overview and challenges ahead

Stress tests are the main practical tools of macroprudential oversight. This paper reviews the stress-testing practices of central banks in Central and South Eastern Europe (CSEECBs) and outlines the challenges in the area of stress testing going forward. The authors discuss good practice and the applied approaches by CSEECBs focusing on the main components of a typical macroprudential stress test, i.e. constructing the baseline and stress scenarios, mapping macroeconomic scenarios and microeconomic factors to risk factors, calculating risk exposures to different risk indicators, and estimating outcome indicators to inform macroprudential policy. The main challenges for the CSEECBs going forward involve needed improvements in data reliability, consideration of quantitative microprudential indicators in macroprudential stress tests, explicit incorporation of dynamics in stress tests to include reaction functions of banks and macroprudential policy, institutionalization of macroprudential policy responses to alarming stress-test results, use of the top-down and bottom-up stress test results in supervisory communication, cooperation of macroprudential and microprudential supervision, and information exchange for better cross-border supervision of international banking groups.Banks&Banking Reform,Debt Markets,Currencies and Exchange Rates,Emerging Markets,Financial Intermediation

Eastern Europe and the Former Soviet Union since the Fall of the Berlin Wall : Review of the Changes in the Environment and Natural Resources

This paper reviews the environmental record of the transition countries of Eastern Europe and Central Asia since the fall of the Berlin Wall, with a focus on areas of key concern to public policy at the present time. With the impacts of environment on public health being given the highest priority, we examined several associated health indicators at the national level, as well as looking at important environmental issues at the local level. In this respect, we focus on environmental problems related to air and water quality, land contamination, and solid waste management. Despite showing a highly differentiated performance across the region, the results suggest that inadequate environmental management seen in several of the transition countries in the past 20 years has put people’s health and livelihood under huge threats. Moreover, this paper looks at the development of policy responses and resources, i.e. environmental expenditures, in these countries, during the process of transiting from centrally planned economies to market-based one. Similarly, we identify various degrees of progress across the region. The findings reinforce the need for better coherence between national environmental expenditure and international environmental assistance, as well as the actual enforcement of national regulations and international agreements in those non-EU transition countries.transition countries; environmental issues; land; policy; environmental expenditure; water pollution; contamination; air pollution; public health

Beyond the crisis: revisiting emerging Europe’s growth model

Focusing on the nexus between economic growth and the buildup of external vulnerabilities, this paper provides a systematic account of different growth strategies followed in Central and Eastern Europe in 2000-08 and then uses this growth diagnostics to derive implications for a post-crisis recovery. The main findings point to three policy lessons for improving growth sustainability. First, greater reliance on tradable sectors should be the cornerstone of a future growth model. Second, enhancing domestic sources of bank credit funding would contribute to the mitigation of external vulnerabilities and make the domestic financial system more resilient to global financial shocks. Third, prudential and macroeconomic policies will have to be more proactive in managing capital inflows, including funneling these inflows into investment in export-oriented industries.sustainable economic growth, sources of growth, external vulnerabilities