Economic Transition in Southeast Europe

Abstract

The article examines some of the main features of the transition to a market economy in Southeast Europe (SEE). Since the early 1990s, a number of politically determined processes have had very negative economic implications for the whole SEE region, since many important economic reforms have been substantially delayed. Although the overall prospects have improved over the past few years, the SEE economies are still facing a number of internal constraints on growth and development, which in some countries are aggravated by externally-imposed reform agendas, aid-dependency and inappropriate international assistance policies. The article analyses macroeconomic performance of individual SEE countries in the 1990s, progress with institutional reforms, their development prospects, the role of FDI and European Union policies. Today, a key challenge for these countries is to carry forward the transition to a market economy and create sound conditions for self-sustainable economic growth, while at the same time preparing for future EU membership.