Economic and Policy Foundations for Growth in South East by Adam Bennett, G. Russell Kincaid, Peter Sanfey, Max Watson

By Adam Bennett, G. Russell Kincaid, Peter Sanfey, Max Watson (auth.)

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2 SEE Average Source: Rankings derived from Boosting Job Growth in the Western Balkans, D. Kovtun et. , IMF WP/141/16; data have been rearranged here to focus on South East Europe. 6 Macedonia Montenegro Romania South East Europe (SEE) Note: 1 indicates no influence on labour market performance, while 3 indicates a strong influence . 5 Structural factors Business environment ...  Euro-denom.  Euro-denom.  Unempl. benefits (share of wage) Unempl. 5 Rest of CESEE Averagea Overview of Macroeconomic Developments  As more and more countries in South East Europe move towards full membership of the EU, the balance of influence has increasingly tilted toward the European Commission (EC), creating the possibility of overlapping and even contradictory advice.

While foreign direct investment to the Western Balkans picked up strongly in the boom years, it could not make up for the many years of absence of such flows (compared to the rest of CESEE) during the period of conflict. Such investment brings with it a multitude of benefits, from a modernised infrastructure and capital base, foreign know-how, managerial skills, and international marketing networks. Compared to their transition peers elsewhere in CESEE, the Western Balkans were far behind in all these areas.

5 Kosovo Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic.  ... 7 ...  ..  ... 2 SEE Average Source: Rankings derived from Boosting Job Growth in the Western Balkans, D. Kovtun et. , IMF WP/141/16; data have been rearranged here to focus on South East Europe. 6 Macedonia Montenegro Romania South East Europe (SEE) Note: 1 indicates no influence on labour market performance, while 3 indicates a strong influence . 5 Structural factors Business environment ...  Euro-denom.

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