Skip to main content

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

Abstract

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.

This is a preview of subscription content, access via your institution.

Fig. 1

Notes

  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).

  4. UNCTAD

  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 .http://www.stabilitypact.org.

  10. The European Commission, Policy on Enlargement. http://ec.europa.eu/enlargement

  11. Formerly SECI currently SELEC (Southeast Europe Law Enforcement Center) http://www.secicenter.org/ 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: http://www.stabilitypact.org/

  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 http://www.oilgasconferences.com

  14. Membership Action Plan: http://www.nato.int/cps/en/natolive/topics_37356.htm.

  15. The Partnership for Peace Program of NATO: http://www.nato.int/issues/pfp/index.html.

  16. European Union Enlargement process, Commission of the European Union, http://ec.europa.eu/enlargement/enlargement_process/accession_process/how_does_a_country_join_the_eu/negotiations_croatia_turkey/index_en.htm.

  17. CEDEFOP, EU (2009–2010),Structures of Education and Training Systems in Europe, Liechtenstein, http://eacea.ec.europa.eu/education/eurydice/documents/eurybase/structures/041_LI_EN.pdf.

  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, http://www.oecd.org/dataoecd/37/5/37969472.pdf.

  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. http://arxiv.org/pdf/1201.4145v2.pdf.

  20. Center for Technology and Research. http://www.certh.gr/.

References

  • Alfaro, Laura, Areendam Chanda, Sebnem Kalemli-Ozcan, and Selin Sayek (2003). "FDI and Economic Growth: The Role of Local Financial Markets." Harvard Business School. Working Paper 01–083

  • Balasubramanyam, V. N., Salisu, M., & Dapsoford, D. (1999). Foreign direct investment as an engine of growth. Journal of International Trade and Economic Development, 8(1), 27–40.

    Article  Google Scholar 

  • Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign investment affect growth? Journal of International Economics, 45.

  • Center for Strategic Research, Turkey, (Jan 2012). Article by Ambassador (retd.) Ali Hikmet Alp: The southeast Europe Co-operation Process: An Unspectacular, indigenous, regional cooperation scheme http://sam.gov.tr/tr/wp-content/uploads/2012/01/Ali-Hikmet-Alp.pdf.

  • Daianu, D. (1997). "An Economic Explanation of Strain: Explaining Shocks in Post-command Economies" in J.G.Backhaus(ed.), Issues in Transformation Theory, Metropol.

  • Dunning, J. H. (2006). Towards a new paradigm of development: implications for the determinants of international business activity. Transnational Corporations, 15(1), 173–228.

    Google Scholar 

  • EBRD Transition Reports (2011).

  • Efthymiopoulos, M. (2008). NATO’s New Strategic Concept and the NATO-Russia Relations. Athens-Thessaloniki: Sakkoulas Publications. in Greek.

    Google Scholar 

  • Efthymiopoulos Marios. (2011). The Economic Knowledge and NATO’s financial viability. Journal of the Knowledge Economy, Vol. 2, No 2, pp256, Published by Springer. http://www.springerlink.com/content/e2512322514623p3/.

  • Gashi, P. (2011). The global economic crisis and Kosovo. LSEE.

  • EFA Global Monitoring Report (2009). UNESCO.

  • Hanushek, E. and Woesmann, L. (2010). “The Economics of International Differences in Educational Achievement”. National Bureau of Economic Research (NBER), Working paper 15494, April 2010.

  • In Petraj Simic: Yugoslavia and regional Cooperation, Institute of International and Political Studies University of Beograd, Međunarodni problem 1998, Vol 50 br. 1, pp 23–42, he refers to the Thessaloniki Declaration of 1997 on good neighborly relations Thessaloniki Declaration on Good Neighborly Relations, Stability, Security and Cooperation in the Balkans. Eurobalkans, Athens, br. 2627, str. 36.

  • International Monetary Fund (IMF) (2008). Transition reports. http://www.imf.org/.

  • Kekic, L. (2011). The Greek crisis—the threat to neighboring Balkan economies. LSEE, 2011

  • Kumar, Nagesh and Pradhan, Jaya Prakash. (2002).”Foreign direct Investments and Economic Growth in Developing Countries: Some empirical Explorations and Implications for WTO negotiations on Investment” RIS Discussion Paper No27/2002. New Delphi India.

  • North, D. (2005).“ Understanding the process of economic change”. Priceton University Press.

  • OECD Investment Reform Index, 2006 and EFA Global Monitoring Report (2009). UNESCO.

  • Pierre, J Andrew. (1999). September, “De-Balkanizing the Balkans: Security and Stability in Southeastern Europe” Special Report No. 54, Institute of Peace. http://www.usip.org/publications/de-balkanizing-balkans-security-and-stability-southeastern-europe.

  • Pitelis, C. N. (1997). Economic Integration through Foreign Direct Investment in (the Less Favored Countries of) Central and Eastern Europe and Impact on the (Less Favored Countries of the) European Union, ACE Project No 94-0719-R,.

  • Sanjay Kathuria (Ed), (2008). Western Balkan Integration and the EU: An Agenda for Trade and Growth , the World Bank. http://siteresources.worldbank.org/MACEDONIAEXTN/Resources/WesternBalkanintegrationandtheEU.pdf.

  • Strategic Concept of NATO: Active Engagement Modern Defense (19 November 2010). http://www.nato.int/cps/en/natolive/official_texts_68580.htm.

  • Velkova, E. (2006).” Integration of South-East Europe in the EU: Corruption, Foreign Direct Investment and Development”. Harvard European Law Working Paper No.3.

  • Zeneli, V. (2011a). Foreign Direct Investment and Economic growth in South European Countries.Phd Dissertation.

  • Zeneli, V. (2011b). “Foreign Direct Investment and Economic growth in South-east European countries”. Ph.D. Dissertation.

  • Zeneli, V. (2011c). The determinants for the attraction of FDI in South-east European countries. The role of Institutions. Ph.D. Dissertation.

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Marios P. Efthymiopoulos.

Rights and permissions

Reprints and Permissions

About this article

Cite this article

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). https://doi.org/10.1007/s13132-013-0150-y

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s13132-013-0150-y

Keywords

  • Security
  • Economic development
  • Institutional strengthening
  • Southeastern Europe