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The Western Balkans region has come a long way over the last two decades in achieving economic and social progress. Its people are the region’s greatest asset. Yet faced with a lack of opportunities many, particularly the young, decide to emigrate.
The Western Balkans region has come a long way over the last two decades in achieving economic and social progress. With a population of 17.6 million, the region today boasts a combined gross domestic product (GDP) of close to EUR 100 billion, an average GDP per capita of about EUR 5 400 and a comprehensive process of integration with the European Union. This report provides multi-dimensional assessments across the economic, social, finance, governance and environmental pillars of sustainable development for five economies of the region. The region's location, its deep relationships with Europe and its academic tradition present many opportunities for future development, especially at a time when distances are shrinking further with digitalisation. Making the most of this potential will require collaboration in tackling challenges, which have been further exposed during the COVID-19 pandemic. Boosting competences and education, strengthening social cohesion and ensuring a green transformation towards clean energy and the valuation of the region's natural wealth, emerge as strategic priorities. Beyond practical and financial constraints, future solutions must address considerable institutional and governance challenges that remain across the region.
The Western Balkans region has come a long way over the last two decades in achieving economic and social progress. With a population of 17.6 million, the region today boasts a combined gross domestic product (GDP) of close to EUR 100 billion, an average GDP per capita of about EUR 5 400 and a comprehensive process of integration with the European Union.
The Western Balkans region has come a long way over the last two decades in achieving economic and social progress. With a population of 17.6 million, the region today boasts a combined gross domestic product (GDP) of close to EUR 100 billion, an average GDP per capita of about EUR 5 400 and a comprehensive process of integration with the European Union. This report provides multi-dimensional assessments across the economic, social, finance, governance and environmental pillars of sustainable development for five economies of the region. The region's location, its deep relationships with Europe and its academic tradition present many opportunities for future development, especially at a time when distances are shrinking further with digitalisation. Making the most of this potential will require collaboration in tackling challenges, which have been further exposed during the COVID-19 pandemic. Boosting competences and education, strengthening social cohesion and ensuring a green transformation towards clean energy and the valuation of the region's natural wealth, emerge as strategic priorities. Beyond practical and financial constraints, future solutions must address considerable institutional and governance challenges that remain across the region.
OECD Development Pathways is a new series that helps developing countries to identify and overcome the binding constraints to more equitable and sustainable growth. The Development Pathways are based on multi-dimensional country reviews, composed of three distinct phases. The first phase comprises an initial assessment of the binding constraints to development. The second phase involves an in-depth analysis of cross-cutting issues resulting in detailed policy recommendations. The third phase explores the political economy of implementing the recommendations.
Inclusive and sustainable economic growth in the six Western Balkan (WB6) economies depends on greater economic competitiveness. Although the gap is closing gradually, the standards of living in WB6 are well below those of the OECD and EU. Accelerating the rate of socio-economic convergence will require a holistic and growth oriented approach to policy making. This is the fourth study of the region (formerly under the title 'Competitiveness in South East Europe') and it comprehensively assesses policy reforms in the WB6 economies across 15 policy areas key to strengthening their competitiveness. It enables WB6 economies to compare economic performance against regional peers, as well as EU-OECD good practices and standards, and to design future policies based on rich evidence and actionable policy recommendations. The regional profile presents assessment findings across five policy clusters crucial to accelerating socio-economic convergence of the WB6 by fostering regional co-operation: business environment, skills, infrastructure and connectivity, digital transformation and greening. Economy-specific profiles complement the regional assessment, offering each WB6 economy an in-depth analysis of their policies supporting competitiveness. They also track the implementation of the previous 2021 study's recommendations and provide additional ones tailored to the economies’ evolving challenges. These recommendations aim to inform structural economic reforms and facilitate the region’s socio-economic convergence towards the standards of the EU and OECD.