University of Piraeus. International Strategic Management Association
Abstract
The Western Balkans have historically been a poor area of Europe. The
total population of the Western Balkans is 24.7 million. Ethnic differences of
long standing have led to conflicts and to political and economic instability.
Poverty and instability have combined to produce a vicious circle of institutional
backwardness. Recent conflicts in Croatia, Bosnia-Herzegovina and
Kosovo have aggravated an already adverse economic situation. GDP in
1999 was substantially lower than that in 1989. The EU plans to enter into
contractual relationships with all the Western Balkans in the form of Stabilization
and Association Agreements (SAAs). The pacts are aimed at helping to
establish economic and political stability, to implement institutional reforms,
to practice regional free trade and cooperation and to privatize the economies
of Western Balkans. These are also the presumed goals of the Western
Balkans.
This study focuses on a review of the progress made by the Western Balkans
toward meeting the above stated challenges. A main conclusion is that
the attainment of these goals has been asymmetrical for economic, political
and institutional reasons.peer-reviewe