The Western Balkans in the turmoil of global crisis

The Western Balkan countries are significantly exposed to the effects of global crisis because most of them are highly indebted abroad, posses insufficient hard currency reserves and experience high balance of payments deficits. Although the first wave of financial crisis (a fall in prices of new financial instruments) was not critical for them, the second wave in the form of credit crunch, collapse of exports and disruption of the inflow of remittances has significant impact. As a result, the economic activity is significantly slowing down in the region, regardless of relative satisfactory tourist season in some of countries in 2009. The negative economic developments will slow down the process of resolving conflicts in the region related to bloody dissolution of former SFR Yugoslavia. Inclusion of the elements of solidarism to their economic systems and policies could ease the catching-up of the region in the process of its reintegration to the developed Europe.