Economic Relations Between the Western Balkan Six Countries

Regional cooperation between the western Balkan countries is the key factor that will lead those countries towards the EU perspective. Improving relations of the Western Balkan countries is a goal that should be fulfilled. The improvement of these relations is a commitment made by the countries themselves at the EU-Western Balkans Summit of Zagreb (2000) and Thessaloniki (2003). Regional cooperation is the way towards regional economic prosperity, social and economic stability.

It is very obvious nowadays that the responsibilities and benefits of the western Balkan countries are tied to the development and bilateral cooperation. Cooperation is an issue applied in different fields, the ones of cross-border nature, to political understanding, addressing to a social and socio-economic prosperity.

Regional cooperation is an important strategic approach of building positive relations. The Western Balkan countries should be opened to collaborate towards a sustainable economy, regional collaboration and partnership as factors of vital strategic importance of building positive relations among them.

I will do the analysis of the impact of such collaboration in in the economic cooperation, achieving economic stability and identifying the respective competitive advantages, strengthening regional market integration and mutual elimination of non-tariff trade barriers. In specific, in this paper I will focus on bilateral economic relations between Albania and Serbia in the frame of integration process.

INTRODUCTION

“We note increasingly stronger support among the countries of the region for the development of regional ties. It is very encouraging that the areas of trade, energy and transport are among those where regional cooperation is the most substantial. Economic development is crucial if the region is to produce the jobs needed for its people. Further efforts are needed to increase trust and cooperation between peoples and countries. In the area of justice and home affairs, the countries need to enhance regional cooperation to achieve results.

Extended regional cooperation in south-eastern Europe is essential, regardless of the different stage of integration of the various countries, and an important criterion for the European course of the western Balkan countries. The stability, prosperity and security of the region are of significant interest to the EU. The EU will continue to foster all endeavours to promote regional cooperation.”

Perhaps the most tangible achievement of all lies in the fact that most of the Western Balkan countries are on a path towards European Union accession, something that seemed far off in the 1990s. It is incumbent upon us not to understate the serious challenges that lie ahead, both in terms of macroeconomic stability and even more so with regard to longer-term development. A key contribution of this book is to underscore the incomplete reform process in the region. We should be worried about this, as without further reforms the lackluster growth of recent years could become the norm, imperiling the convergence of living standards towards Advanced European levels, and denying employment opportunities to many in the region.

ANALYSIS OF THE ECONOMIC RELATIONS BETWEEN THE WESTERN BALKAN COUNTRIES

According to David Lipton, IMF first deputy managing Director, he transition from socialism to capitalism and democracy was less smooth than in other parts of Emerging Europe. But once the war ended and peace returned, these countries did more than rebuild: they began a transformation into market economies, liberalizing prices, privatizing many state- and socially-owned enterprises, and building the institutions needed to support a market economy.

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