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From Transition to Opportunity: Security, Institutional Strengthening and Economic Development. Southeastern Europe Revisited


This paper aims to analyze the economic dimension of security in Southeastern Europe. Practical development in the region will lead to the request of collective integration of the remaining states in the Euro-Atlantic structures. Financial security, the new “buzz words” in political and foreign policy affairs will assure development, prosperity, and growth. Fiscal security cannot be assured or guaranteed unless there is a clear projection of an ambitious plan for a total growth and development in all fields of a structured community or country. This paper proposes the creation of the Foreign Direct Investment (FDI) program through the creation of the Interoperable European Development Network (IEDN). The IEDN will be “a road map” for renewed development in Southeastern Europe, and the FDI will be its tool for reconstruction of the region. It is expected that its application will effectively and in practice, tackle the existing fiscal crisis in the region.

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Fig. 1


  1. Bulgaria and Romania are members of the European Union.

  2. This is according to the personal opinion of the author of the article.

  3. Zeneli. (2010b). The study aimed to explore the relationship between foreign direct investment and economic growth in South East Europe. The panel dataset covered 8 countries (Albania, Bulgaria, Romania, Croatia, FRY Macedonia, Bosnia & Herzegovina, Serbia and Montenegro) over the period 1992–2009. GMM (Generalized Method of Moments) panel data system techniques were used for the analysis. Major growth factors are taken in consideration in this analysis as initial income per capita in the host country, human capital, trade, inflation, governments spending, domestic investments, credit to the private sector, remittances, quality of institutions and privatization process (the inflows of FDI were divided into Greenfield and Privatization-related FDI).


  5. In Bulgaria FDI per capita in 2008 was 1290 $, in 2009 fell to 592 $. Source: UNCTAD database.

  6. Export markets in EU countries (especially Germany, Italy, Greece and Austria) dropped sharply in 2009 with some signs of stabilization in 2010. Countries which suffered more are: Bosnia and Herzegovina, FRY Macedonia, Romania and Serbia in the steel industry and aluminum; Romania in the car industry; and other countries in their textile industries.

  7. Especially in the cases of Albania, Croatia and Romania, EIU statistics.

  8. Economist Intelligence Unit.

  9. The Stability Pact for South Eastern Europe .

  10. The European Commission, Policy on Enlargement.

  11. Formerly SECI currently SELEC (Southeast Europe Law Enforcement Center) The objective of SELEC, within the framework of cooperation among Competent Authorities, is to provide support for Member States and enhance coordination in preventing and combating crime, including serious and organized crime, where such crime involves or appears to involve an element of trans-border activity.

  12. The Southeast Europe Stability Pact:

  13. Lately there is a try over official meetings and conference to re-establish relations amongst states in the Balkans to establish a new road map and market for energy development. For more information see the upcoming conference on May 2012

  14. Membership Action Plan:

  15. The Partnership for Peace Program of NATO:

  16. European Union Enlargement process, Commission of the European Union,

  17. CEDEFOP, EU (2009–2010),Structures of Education and Training Systems in Europe, Liechtenstein,

  18. OECD, Company ARCADIS (2004). Public Administration Reform Capacity-Building in the SAP (Stabilisation and Association Process Stabilisation and Association Process) Countries Towards a Regional School for Higher Education for Public Administration Reform (SHEPAR), the case for the Western Balkans,

  19. Eytan Bakshy, Itamar Rosenn, Cameron Marlow, Lada Adamic. (2012). The Role of Social Networks in Information Diffusion. In Proceedings of ACM WWW 2012, April 16–20, 2012, Lyon, France.

  20. Center for Technology and Research.


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Correspondence to Marios P. Efthymiopoulos.

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Efthymiopoulos, M.P., Zeneli, V. From Transition to Opportunity: Security, Institutional Strengthening and Economic Development. Southeastern Europe Revisited. J Knowl Econ 6, 838–855 (2015).

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  • Security
  • Economic development
  • Institutional strengthening
  • Southeastern Europe