Compounding the Crisis? International Assistance in the Western Balkans
Compounding the Crisis? International Assistance in the Western Balkans

Summary/Abstract: Whilst regional leaders initially hoped that the global economic and financial crisis would have limited impact in the Western Balkans, the situation is now serious and likely to worsen. This paper outlines that, although in terms of macroeconomic figures, the situation is not as grave as in the Baltic states or in Russia, the Western Balkans region will continue to face multiple economic problems with potentially serious consequences for political and social stability. With around 30 percent of the population in the Western Balkans living on less than US$5 per day, and with a highly vulnerable middle class, we argue that short of concerted efforts to mitigate the impacts of the current crisis, rising poverty and vulnerability may well reverse many of the gains made by these countries in the past decade and jeopardize ongoing peace-building and multi-ethnic state-building processes. The paper explores the responses to the crisis by the governments of the region and key international partners to date. It is clear that responses on all sides have been slow and continue to lack the kind of strategic direction, co-ordination and focus that the situation warrants. The EU in particular needs to show unequivocal leadership in addressing the crisis in what is at the end of the day an accession region in order to avoid perceptions of a failed European project, and the creation of a new poverty ghetto in the Western Balkans.

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