Abstract

Text which follows represents geographical contribution to the study of the economy of northeastern Montenegro, on example of municipalities Berane, Andrijevica and Plav. Temporal frame for the study covers the period from prehistoric of our time. The focus of research directed on two sets of questions, it is on: the characteristics of economic development to the Second World War and on characteristics of the development of the economy after the Second World War. By the beginning World War II, analyzed the geographical space was one of the underdeveloped areas of Montenegro. Prevailing is mostly agricultural production. After the Second World War former Yugoslavia, in whose composition is entered and Montenegro, started is in process accelerated industrialization. High measure of job security prevented activity mechanism of competition and the market economy. There was no pressure on employed workers to increase efficiency, which led to such situations that for exercise same scale of production engaged considerably more workers than in the classical (an entrepreneurial) firms. The economic consequences were are expected: since the mid-of the seventies years ago the last century up to the complete collapse of the economic system at the end of the eighties years ago the last century, productivity Labour is mobiles falls while is hidden unemployment grew. Development problems and irrational economic system retain all the professional and scientific opinions, without the possibility of that the any particular conduct proceedings. I then, appearance and now we did not manage to elevate above observation. Therefore, thus conclude that is necessary develop a special economic innovative strategy for regional policy, adapted on the hilly-mountainous regions what, kind of is exactly and analyzed geo-space

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