The Western Balkans on the Road to the EU: An Introduction

The Western Balkan economies have emerged from a serious economic recession and are in search of a new growth path on their way to eventual EU membership. However they are beset by numerous economic and social problems that hinder their progress. This chapter outlines the main issues that need to be addressed and that are taken up in the subsequent chapters in this volume. These key issues are identified as relating to both economic governance and social inclusion, while the need to deepen the quality of democracy and strengthen the rule of law is also recognised. The economic issues discussed in this book include promoting export-led growth by developing trade in services and promoting regional trade liberalisation, resolving the debt crisis and improving macroeconomic governance. In relation to macroeconomic governance, the chapter addresses the comparative merits of supply-side and demand-side policies. On the social side, the book discusses the need to improve the inclusiveness of their societies to reduce poverty and inequality and to raise the quality of human capital through reforms of the higher education systems. In achieving these aims, the countries will simultaneously make progress on their road to EU membership, which has recently been given a renewed sense of urgency. In addition, the need to create a more integrated regional economic area as a way for the region to make further progress along its path to deeper EU integration is also discussed.