The Development of the Balkan Region

The Balkan region has changed fundamentally under the impact of the interacting forces of integration and transition which are shaping the new European economic landscape. For many countries, the 1990s were a period of serious crisis: this text explores the failure in transition from plan to market. It examines why the Balkan countries have been so different in terms of performance when compared to Central Europe. Why was there such a profound case of failure? Are domestic policy failures or unfavourable initial conditions and unfavourable geography responsible for this poor performance? In addition, what has been the response of the European Union and what can be done?