Competitiveness in South East Europe

A Policy Outlook 2018

image of Competitiveness in South East Europe

Future economic development and the well-being of citizens in South East Europe (SEE) increasingly depend on greater economic competitiveness. Realising the region’s economic potential requires a holistic, growth-oriented policy approach. Against the backdrop of enhanced European Union (EU) accession prospects and a drive towards deeper regional co-operation, SEE governments have demonstrated a renewed commitment to enacting policy reforms.


The second edition of Competitiveness in South East Europe: A Policy Outlook seeks to help SEE policy makers assess progress made towards their growth goals and benchmark them against regional peers and OECD good practices. The 17 policy dimensions addressed in this report encompass a wide range of areas key to economic competitiveness including the business environment, skills and capacity, the region's economic structure and its governance. The report leveraged a highly participatory assessment process which brought together more than 1 500 individual stakeholders including OECD experts, SEE policy makers, private sector representatives and regional policy networks and organisations to create a balanced view of performance.

Since the latest edition of the report, there have been areas of noteworthy progress. The six assessed SEE economies have adopted strategies to improve the overall standard of education, acted to remove technical barriers to trade and taken steps to establish better financing mechanisms for small and medium-sized enterprises. Further efforts are underway to expand broadband services and close the digital divide, tackle inefficiencies in the energy and agriculture sectors, and address demographic challenges posed by long-term unemployment. Notwithstanding these important gains, there remain considerable challenges for these economies as they continue their journey towards structural reform.



Environmental policy in South East Europe

This chapter on environmental policy assesses the quality of legal and policy frameworks and the extent of their implementation in six South East Europe (SEE) economies. It uses four sub-dimensions based on the OECD Green Growth measurement framework to assess progress towards environmentally sustainable development within the socio-economic context of the SEE economies. The first sub-dimension, resource productivity, describes the efficiency with which economic activities use natural resources. The second sub-dimension, natural asset base, examines the accessibility and ability of natural stocks to provide environmental inputs for development, and highlights potential risks to growth from a declining natural asset base. The third sub-dimension, environmental quality of life, assesses the interactions of environmental conditions and risks to people’s quality of life and well-being. The final sub-dimension, policies for green growth, gauges whether policies foster green business opportunities while addressing concerns on income distribution. The chapter includes suggestions for enhancing the policies in each of these sub-dimensions to strengthen green growth, which in turn would foster the competitiveness of these economies.




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