By Romania) Regional Conference for South East Europe 2001 (Bucharest, International Monetary Fund, World Bank, Dimitri G. Demekas, World Bank International Monetary Fund
A copublication of the area financial institution and the overseas financial Fund; ahead of the eruption of the Kosovo clash within the spring of 1999, the international locations of South japanese Europe - Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia, Romania, and FR Yugoslavia - have been lagging at the back of these of critical Europe and the Baltics from an monetary and governance standpoint. even though brief lived, the challenge threatened all nations within the quarter and therefore, it grew to become a defining second for them. The process built through the interrational group in accordance with the crises, used to be a completely built-in one, which incorporated reconstruction and monetary prosperity for the whole sector. This paper files the development made by way of the area when it comes to monetary progress and govt reform. It recognizes the confident influence of the donor neighborhood upon this growth and issues out that ongoing growth relies on powerful governance and coverage improvement from the experts within the sector. this can be severe to bringing inner most funding into the sector.
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Extra resources for Building peace in South East Europe: macroeconomic policies and structural reforms since the Kosovo conflict
Price liberalization M o s t prices formally controlled by the govemment. 1 Price controls for several important product categories: state procurement at non-market 2 prices remains substantial. Substantial progress o n price liberalization: state procurement at non-market prices largely 3 phased out. Comprehensive price liberalization; utility pricing which reflects economic costs. 4 4+ Standards and perfonnance typical o f advanced industrial economies: comprehensive price liberalization; efficiency-enhancing regulation o f utility pricing.
Moderately tight credit and subsidy policy but weak enforcement o f bankruptcy legislation 2 and l i t t l e action taken to strengthen competition and corporate govemance. , through privatization combined with tight credit and subsidy policies and/or enforcement o f bankruptcy legislation). Substantial improvement in corporate govemance, for example, an account o f an active 4 corporate control market; significant new investment at the enterprise level. - 28 4+ Standards and performance typical o f advanced industrial economies: effective corporate control exercised through domestic financial institutions and markets, fostering marketdriven restructuring.
FINALOBSERVATIONS This paper has documented the encouraging progress made by the SEE countries since the end o f the Kosovo conflict in highly difficult conditions in pursuing market-oriented reforms and strengthening integration with the rest o f the world. Although it i s too early to tell whether the momentum will continue, and the situation in FYR Macedonia i s still a source o f concem, there are reasons to be optimistic. The progress i s real, and there are signs o f a deeper and broader consensus o n both the ultimate goal o f sustainable growth and o n the policy means to achieve it.