Implementing structural reforms in the Western Balkan countries

The paper focuses on three main objectives. First, it assesses the progress of structural reforms implemented in six Western Balkan transition economies, i.e. Albania, Bosnia and Herzegovina, Kosovo, FYR Macedonia, Montenegro and Serbia. Second, it outlines the major economic and institutional weaknesses of these countries. Third, using the conceptual framework of new institutional economics it suggests a non-standard general approach to the reform process and provides guidelines for the design and sequencing of the most needed structural reforms which may enhance the international competitiveness and improve the macroeconomic performance of the Western Balkan countries in the future.