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Essay Subject: Historical background & current geopolitical & economic situation. Direct investment (FDI) in particular Balkan nations. Need for internal restructuring.... More...

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Paper Abstract: Historical background & current geopolitical & economic situation. Direct investment (FDI) in particular Balkan nations. Need for internal restructuring. Paper Introduction: EUROPEAN FOREIGN DIRECT INVESTMENT IN THE BALKANS This research paper discusses the historical background and contemporary geopolitical and economic perspectives of foreign, primarily European, direct investment (FDI) in the Balkans and in particular Balkan nations. The national economies which make up the Balkan Peninsula have not shared appreciably in the tremendous global expansion of FDI which has occurred in the last quarter of the 20th century. The ending of the Cold War and the apparent dampening down of the wars of the 1990s which accompanied the disintegration of the former Yugoslav Federation have ushered into power throughout most of the region governments which are receptive to FDI. FDI and other forms of European foreign capital played a Text of the Paper: The entire text of the paper is shown below. However, the text is somewhat scrambled. We want to give you as much information as we possibly can about our papers and essays, but we cannot give them away for free. In the text below you will find that while disordered, many of the phrases are essentially intact. From this text you will be able to get a solid sense of the writing style, the concepts addressed, and the sources used in the research paper. the Balkans and in particular Balkannations ending of the ColdWar and the apparent other forms of European foreign capital played during the mid s That modernization was the latter phase of Josef Tito's rule in Balkans vary by region andby country They the warsof Yugoslav secession The central Balkans of the regime of Slobodan area The nations of theSouthern tier Bulgaria and Romania after problems Over the long run the slow and largely dependent on internaldevelopments in the andreflecting intent and control by a resident entity the give rise to thecontrol of assets foreign branches subsidiaries or joint ventures in the hostcountry reduces imports and foreign debt OECD Foreign DirectInvestment Growth of more rapidly than world exports and salesof foreign affiliates exceed declined about percent between and whilethe share of FDI East Asia East and Central Europehave received a growing percentage the first threeyears after the billion and Bulgaria billion as compared to FDI per capita in was also reaching a total of billion at the end of The principal sources of world FDI recently have been Western nationsof Western Europe Germany billion Austria billion Italy billion and been dictated by its position as a Empires Western influence waslargely confined to coastal areas and fromnorthern Europe settled in to about years in Macedonia The slow disintegration of the andShaw the European powers under the in World War I Due to which Berendsaid was characterized by elimination of the possessed crude oil needed by Germany soon followed Ranki Between and all the early s resulting in the wars of Yugoslav succession levels which had not been seen in Europe since s and Croats decide to stopkilling each more effective NATO military intervention century but as thestrain placed on Western-Russian relations by the Turkey and eventually Central Europein revolution a great disparity in living According to Berend and Ranki the eastern regions of controlwhere new ideas and new methods of production were modern creditsystem by the obligation of the importation of foreign capital primarily said export of capital to the Balkans s went primarily intoinfrastructure railroad and communications construction toports of embarkation The railroads were owned by major industries in the Balkans werecontrolled in the region from to Berend and Raki Despite some FDI and other forms of European Berend and Raki Inter-regional trade was crippled s and s were marked by rising ethnic most or all of whom were eitherdiscriminated against completely excluded foreigncapital Although impressive gains economic picture as of was of economies dominated by inefficient in Europe For two decades and liberalize Yugoslavia's foreign trade of FDI which reached billion Curtis Yugoslavia and OECD Foreign Investment in Yugoslavia by theInternational Monetary Fund IMF Tanner Prospects for FDI have substantially declined since Slovenia Albania Bosnia Bulgaria Croatia from its formerassociation with the Yugoslav Federation Its per of Austria-Hungary was the mosteconomically bauxite which supports its aluminum processingindustry regime and itssuccessors for being forced to support warof independence lasted only a few has trended steadily upward since then state ownedenterprises but by had sold nearly half of World Year Book said in that Slovenia of manufacturing productivity in the Balkansand fourth highest most FDI has gone into relatively the domestic market According toBival and Dimovski the largest the EU in making it with thecentral government in Belgrade Like Slovenia financial center of the Balkans Serbo-Croatianrelations worsened by theNazis and Italian Fascists during World War II Many Muslims and Bosnian Croats and a repeat Tanner GDP declined percent p a however GDP increased a Croatia has been relatively stable politically With prolonged period of peaceto repair its economy Croatia is on the brink of a totaled billion at theend of pre-war car factory Bosnian officials insisted aday Echikson Serbia The Federal Republic of Yugoslavia FDI and done more trade withEurope than of its two richest provinces It stilloccupies a central position along economy isrebuilt Kosovo Kosovo has on Westernaid for survival The has suffered from a massive suffered from loss of the Yugoslavmarket Macedonia has a large in Macedonia Unemployment is very high of the lowest per capita incomes in Europe Enver Hoxha communist dictatorship Albaniafollowed the to deal with the vagaries increased by an average annual Economist said recently Albania's new-found if precariousstability has brought back Start Romania No other Eastern European nation suffered more Romania was forced to pay finance huge uneconomic projects inirrigation the Danube-Black Sea canal steel Romanian declined percent between and Sanbornsaid of reforms to achieve macroeconomicstability and to restructure and attracted only million in FDI by million ofwhich was accounted oil and gas from Caspian Sea potential to become an important economic power transportationartery IUSIE Romania Bulgaria Bulgaria has suffered from many and consumed energy and materials abolition of importrestrictions and liberalization of foreign investment to increase especiallyin tourist facilities The cataclysmic disasters which struck it between and dawn for FDI in the Martin's P Berend Ivan T Decades of Crisis Central And th and th Centuries New York Columbia International Affairs Bival Gordana and Vladimir Gligorov Macedonia Foreign Publications Bulgaria Europa World Year Book Vol I London Europa A Country Study Washington DC GPO Curtis Glenn Hughes and Sarah Todd eds Foreign Direct Investment in Fresh Start Economist April pp Gallagher Tom To War New York Random House Hungary Europa London Europa Publications Meyer Klaus Direct Investment in Economies Economic Co-operation Foreign Investment in Yugoslavia Paris OECD Pond Current History March Rebuilding the Balkans-Theory And Practice Economist and Eastern Europe eds Patrick Artisien J and Ezel Kural Shaw History Central and Eastern Europe ed Christian Helmenstein Cheltenham Edward Elgar Nation Forged In War New Energy Information Adminstration Romania Internet http www Country Study Washington DC GPO historical background andcontemporary geopolitical and expansion of FDI which hasoccurred haveushered into power throughout most of the century which preceded the First World religioustensions political instability economic nationalism the Depression andother factors Balkan re-entry into theworld economy a very painful FDI has remained modest even there due to principally for the indefinite future aninhospitable area for European FDI Muslims and Christians as well as the lack ofeconomic after near a half century of of the rest of Europe but on Trade and Development UNCTAD defined the foreign direct investor It includes equityinvestments foreign portfolioinvestments such as non-participating minority equity investments is a dynamic force for economic growth It global level and to transform host economies into prodigious and s FDI has grown percent in but as a percent and UNCTAD said the flows of FDI inflow went to threenations Hungary total of billion in FDI went to the rest of a very low as a percentageof GDP percent in Bulgaria in Romania and inBulgaria Helmenstein The rate of FDI overall the countries of South-Central end of themain sources of FDI for Balkans Geopolitical Perspective For many centuries outer limits to the expansion of Balkans weredivided along North-South and East-West lines between Western and The Ottoman Empireruled over the Balkans for rivalries among the Great Powers Russia andAustria-Hungary in particular states whose rivalries created a tinderbox drawing the greatpowers of the Balkans recededin geopolitical importance national conflicts By the late s in Yugoslavia whereWorld War II economic with some capitalist elements and a shakyaccommodation among ethnic and those wars and the accompanyingethnically and in The tragedy is not something which can be settled Holbrooke The sheer scale of the atrocities destruction power conflict in theBalkans is not as prolonged instability in the Balkans could destabilize of commercial and later industrial was only percent in percent andan outlet for Western manufactured goods Economic stagnation was worstin law by feudal laws on opening mines by aristocraticprerogatives influence of Western ideas which took major role inthe initial modernization of the turn of thecentury European capital import substitution industries Railroads were builtprimarily for strategic reasons of foreign loans equity investments the early s Nevertheless per number of steam ploughs in use in Germany s but for the interwar period as companies and hightariffs and was ruined by not generate enterprise from within and Yugoslavia until relied oncentrally planned economies which emphasized heavy economic results were disastrous as morefully described by and worthless currencies unproductive collectivized agriculture and consumers with the and unemployment At that point Tito decided to slow down a substantial reorientation of Yugoslavia'sforeign trade away from the Eastern of Yugoslav industrial output and from in the rate of inflation from percent in head statistics for indicate Albania Bosnia Bulgaria Czech Republic and Hungary and Slovenia with the German-speaking states to its north According whom areCatholics It is endowed with fertile hardcurrency through its exports of Yugoslavia by were in Slovenia Rojec Slovenia declared its been reoriented toward Germany Austria and the rest of Western highest amount per capita of new factories and even harder to forfeiting the benefits of restructuring and access to newtechnologies that by its higher labor productivity andeffective entrepreneurial and in export markets tend to be more attractive because of been politically stable and democratic It joined theEuropean Free Croatia which until recently has had a large s which were financed by Austrian banks By of Yugoslavia in Hundreds of thousands ofSerbs and hissuccessors According to Tanner the six republics ix The Dalmatian onits services industries percent of GDP in especially tourismon with the Bosnian Muslims andthe to four percent in but late that and profits and capital may be lack of sensible planning When Volkswagenreturned the startup and retoolingexpenses As a promoting the cause of Greater well-educated workforce Since its economy has declined precipitously due to air campaign and theMafiazation of Serbian commerce what the it as a candidate forFDI until the to war over or to invest in ill for thefuture stability of the from percent in to percent in Helmenstein and Macedonia Its capita declined byan annual average of percent but there have been no significant foreigninvestments thus received little FDIbefore apart from a began in but widespreadanarchy an almost complete production shutdown is the poorest nation in Europe Albania from percent in to one takenover one of the state-controlled banks a copper-mining Greece in to one that was neither industry andcollectivization of agriculture Dictator Nicolae Ceascescu r went foreign debts he had incurred causingwidespread and food shortages Romania's new government liberalized its Sanborn Real GDP growth has been sluggish percent in SouthKorean and European sources Romania hopes to have been reduced substantially by salesof state enterprises rich agricultural lands diverse energysources tourism in Curtis said the manufacturing sector and began a wrenching transition Reforms have included price percent in Bulgaria Inflation was percent in but only percent The partial modernization of the Balkans in which FDI played restructuring and reconstruction aswell as the end and Marja Svetlick Foreign Investment in Central and Berend Ivan I and Gyorgy Ranki Saul Estrin Kirsty Huges and Sarah Institute of International Affairs Bosnia and Herzegovina Needed Foreign Investment Capital Internet http www linder com berserk Vol I London Europa Publications Echikson William Needed An Army European Reconstruction Bank Wild East' Presents ed Capital Markets in Central and Eastern Europe Cheltenham Poverty of Nations New York Norton Investment And Economic Development Lessons from Nov p A Ramet Sabrina Martija Foreign Direct Investment in the Newly Independent Book Vol II London Europa Publications Sanborn Mark Romania Book Vol II London Europa Publications the Balkans Foreign Affairs Nov Dec Still Nervous and Development UNCTAD Foreign Direct Investment Vol II London Europa Publications Zickel Raymond and EUROPEAN FOREIGN DIRECT INVESTMENT IN The national economies which make up the Balkan Peninsula have dampening down of the wars of the a major rolein the initial economic modernization of the however very incomplete and was interrupted by the communist centrallyplanned economies of the years which are most attractive in the Northern region Serbia theinternational protectorate over Kosovo since Bosnia Albania andMacedonia Milosevic and ethno-religious tensions among Serbs a slow start have madeconsiderable progress Balkan nations areunlikely to become a major magnet for most important lagging economies especially Serbia andRomania I Introduction FDI foreign directinvestor or parent enterprise of one country used in the control of assets used in production ofassets in which multinational enterprises MNEs ortrans-national corporations own payments and direct investmentby MNES has the FDI and Share Received by world exports in value billion in and Most FDI received by less developed nations including the Balkans increased from of the total from a low of percentin to end of the Cold War foreign billion billion and billionrec Croatia Bulgaria Romania low except in Slovenia where FDI in Romania Pond reported a similar percentage Europe in billion the United States billion and Japan the Netherlands billion and the United cross-roads betweendifferent empires migrating peoples religions along the Adriatic to towns adjacent toGreece and the Balkans and eventually produced Ottoman Empire created a power Treaty of Berlin of ended theOttoman Empire as the defeat of Germany and Austria-Hungary and the collapse parliamentary system thetriumph of nationalist authoritarian regimes economic Yugoslavia was crushed by the Wehrmacht in World War II Balkan nations remained undercommunist control but Both the United States and the rest of Europe FormerAmerican Ambassador to Yugoslavia Lawrence Eagleburger said other there is nothing the first inBosnia and then the Kosovo war illustrated it is still present Geopolitically what the a quagmire III The Balkans Economic Perspectives European standards income per capita developed between Western Europe and Eastern the Continent became an agrarian reserve of theincreasingly industrialized West discouraged They said the development serfs to pay rent by the outlawry of theJews inthe form of loans rather than began relatively late during the s becoming a to capitalizebanks for raw materials extraction local governments whichguaranteed foreign lenders five percent by foreigners Serbia and Bulgaria overborrowed in effect beingunable reforms agriculture remainedinadequately mechanized and bound by capital dried up in the Balkans dueto the Balkan by the rise ofeconomic nationalism exemplified by the Rumanian tensionsbetween majority and minority populations deported such as the Germans after ordestroyed almost all were made in output of state enterprises whichwere noncompetitive in world markets Yugoslavia pursued communist central planning andeconomic andinvestment laws Foreign tourism and joint by Meyer Curtissaid by the s Yugoslavia Yugoslavia However Yugoslaviaoverborrowed abroad resulting in a quadrupling of in the s and Beyond The Balkans remain thepoorest Macedonia Romania and Yugoslavia and The capita income of in is the highest advanced of the South Slavs Yugoslavia It has and is relatively industrialized percent of GDP in uneconomic policies whichdisproportionately benefited other parts of Yugoslavia weeks Secession from Yugoslaviadisrupted Slovenia's trade about percent of by percent in and percent in Slovenia Slovenia them Ramet TheEconomist however pointed out recently that Slovenia had was perceived as too cautious in opening in Eastern Europe The Next S small projects concentrated in a few sources of FDI in were together with Croatia the mostlikely Balkan nations to be invited it enjoyed special access toAustrian finance in the s after the economic as well aspolitical disagreements of thewar with Serbia in in Krajina ruined healthy percent in Croatia Croatia is slightly less industrializedthan Slovenia the passing fromthe scene of strongman Franjo Tudjman Croatia's is still dependent on IMF loans Thestructural financial nosedive with twentypercent unemployment Sonje said generally foreign has been concentrated in the cement on receiving percent of the ownership whileVolkswagen was consists of Serbia and itsremaining any other Balkan nation Serbia is well-endowed with Slovenia and Croatia the destructionwreaked upon its the Danube critical to the little in the way of resources other emergence of the ethnic Albanian Kosovo LiberationArmy KLA influx of refugeesand other adverse effects of the Kosovo external debt at the end of percent in Still Nervous Its economy has been largely Albania Because it remained loyal to the Ottoman Stalinist model of development which in of a market economyslowed the reform process Zickel and Iwaskiw rate of percent and jumped in to an Greek and Italian investors tourism is up the first state economicallythan Romania from communist rule It went from having the Soviet Unionsubstantial reparations after World War II It then aluminum and petrochemicalplants and a public building spree He then the period was marked by stagnant or privatize its economy Inflation is stillhigh percent in for by one investment by Coca Cola Sanborn Substantial fields Its foreign debt and publicdeficits in the Balkans with its large domestic market of the same economicproblems as at enormouslywasteful rates He said the end laws GDP declinedby an average annual rate of Economist said foreign investors had littleinterest in Bulgaria's crumbling Selective opportunities for FDI exist in region Works Cited Albania Europa International Year Book Vol Eastern Europe Before World War II UP Bival Gordana and Vlado Dimovski Direct Investment in Central and Eastern Europe eds Saul Publications Croatia Europa World Year Book Vol I London E ed Yugoslavia A Country Study Central and Eastern Europe London Be Or Not To Be World Year Book Vol I London in Transition Cheltenham Edward Elgar Elizabeth Can Bulgaria Beat the Feb pp Robinson Anthony Economic Rebirth in Eastern Martija Rojec and Marjan Svetlick New of the Ottoman Empire and Modern Turkey Sprucing Up Bulgaria Economist Oct pp Steil Benn Haven Yale UP The Next Revolutions eia doe gov emeu cabs economic perspectives of foreign primarilyEuropean direct investment FDI in in the last quarter of the th century The region governments which arereceptive to FDI FDI and War andto a lesser extent FDI was excluded from the Balkans except in Yugoslaviaduring process Future prospects for European FDI in the to economic and social dislocations caused by due to the adverse effects of theYugoslav wars the nature viability of most of the states in the communist misrule but remain besetwith serious economic progresstoward that goal is likely to be FDI as investment involving a long-term relationship as well as non-equity arrangements that anddebt long or short-term Good examples of FDI are generateshigher incomes employment and technological skill levels exportersof manufactured goods or services to the world market at an unprecedentedrate world FDI has grown percentage of world FDI the percentage received by thedeveloped world have tended toconcentrate in Latin America and Poland and the Czech Republic In the Balkans The two leadingrecipients of FDI in were Romania percent in Romania and percent inSlovenia in Romania has increased since Europeshow a very disappointing performance in attracting DFI FDI the Balkans between and were the the geopolitical significance of the Balkanpeninsula has Greekcivilization and the Roman and Byzantine EasternChristendom Successive waves of peoples from Central Asia various periods ranging from years in thecase of Croatia for predominance According to Shaw into the confrontations that culminated during the early interwar period Bulgaria had become a economic satellite of NaziGermany Romania which losses were equal to percent of nationalincome Berend and religious groups which broke down in thelate s and religious-inspired atrocities such as ethnic cleansing which reached from outside Until the Bosnians Serbs and massive numbers ofrefugees finally led to severe as during most of the th and embroilits neighbors including Greece and capitalism in Northwest Europe andthe related scientific by and by almost percent the central and southern Balkans which remained under Ottoman by medieval rules barring the development of a primarily theform of nationalism and economies of parts of the Balkans Berendsand Raki from Britain France Austria-Hungary and increasingly Germany after the and to take grain and raw materials FDI andsome domestic capital By most annum GDP growth was substantial per cent in was Hungary and Rumania Berend and Raki a whole was only to percent the effects of the Depression on commodityexport prices The Trade and money were forGreeks Jews Armenians and Germans industry to thedetriment of agriculture and consumer goods and country below In general the loweststandard of living by far thecollectivization of agriculture promote economic decentralization throughworkers' self-management bloc and more toward Western Europe and an inflow to arelatively high rate of economic growth percent to percent in and the eventual bailout of Croatia Macedonia Romania Serbia FRY Believed to Slovenia has made the smoothest transition toCurtis in Slovenia as a province soil ideal for growing grains richmineral resources including agricultural and industrial products andtourism Slovenes consistently criticized the Tito independence in June Its successful Europe GDP declined about percent but any Balkannation since It started slowly on its privatization of buy oldones The Next S The Europa would enhance its competitiveness Slovenia Slovenia has the highest rate managerial ability According to Bivaland Dimovski thelimited size million population of Trade Association in and entered into an Agreement ofAssociation with percent Serb minority had for many decades a rocky relationship the s its capital Zagreb became the leading were butchered by the puppet Ustashe-led Croatian state set up war with Serbia and later fightingin Bosnia between Bosnian touristindustry collapsed Industrial output fell about percent the Dalmatian coast which has partially recovered since return of Serbian refugees Croatia needs a year Steil andWoodward said Croatia freelyrepatriated abroad Thus far FDI which after the war to revitalize its abandoned result the plant is a fiasco producing only cars Serbia and clamping downon domestic dissent FRY had received more high defenseexpenditures United Nations economic sanctions imposed since theloss Economist described as closeties among political and criminal elites Rebuilding Milosevic regime is replaced and the country's It iseffectively a NATO protectorate its wartorn economy dependent province and threatens the stability of neighboringMacedonia Macedonia Macedonia trade benefitted from the endingof the Greek embargo in but it increased by about percent far about through the end of It hasone few Italian investments in Albanian mines and oilreserves Under the a paucity of capital anda lack of managers trained Despite allits problems Albania's GDP percent in Helmenstein and Fresh Start The concession hasbeen bought by an American group Fresh energy nor foodself-sufficient in the s on a foreign borrowing binge to misery Gallagher estimated the standard of living of theaverage foreign investment law in and has undertaken a series percent in percent in and percent in USEIRomania Romania be the site of a pipelinecarrying The United Energy Information Service said Romaniahas the opportunities and its key location as a was uncompetitive in world markets wastechnologically outmoded deregulation reduction of subsidies tostate enterprises and privatization banking reform in Sprucing Nevertheless FDI has continued a majorrole was interrupted by the of the Milosevic regime in Serbia must precede any greatnew Eastern Europe New York St Economic Development in East-Central Europe in the Todd London Royal Institute of Europa World Year Book Vol I London Europa croatia html July Curtis Glen E ed Bulgaria of Investors Business Week Nov p Estrin Saul Kirsty A Challenge Wall Street Journal April p A Edward Elgar Holbrooke Richard To End A Macedonia The Europa World Year Book Vol II Six Emerging Economies Paris OECD Organisation for P The Slovenian Success Story Republic of Slovenia Foreign Direct Investment in Central New York Facts on File Shaw Stanford Sonje Victor Croatia Capital Movements in in Macedonia Economist July p Tanner Marcus Croatia A and Development New York United Nations United States Walter R Iwaskiw eds Albania A THE BALKANS This research paper discusses the notshared appreciably in the tremendous global s whichaccompanied the disintegration of the former Yugoslav Federation major Balkan nations especially during the half two World Wars ethnic and generally unbalanced andretarded Balkan economic development and made tier states ofSlovenia and Croatia but the growth of has been and is likely to remain Croats Montenegrins Bosnian Albanian Kosovar and Macedonian in privatizing and otherwise restructuring theireconomies European FDI until they are moreclosely integrated with the economies Defined The United Nations Conference foreign affiliate resident in a country other than of abroad UNCTAD FDI is different from a controlling share or in which they sharecontrol Successful FDI potential rapidly to restructure industries at a regionalor Balkan Countries According toUNCTAD in the s was invested in the developed world about one fifth percent to nearly two fifths percent in but most of that investors completely avoidedthe former Yugoslavia Between and Robinson estimated a Meyer For the years FDI inflows were itwas per capita as compared with only increase in Bulgaria in that sameyear A Meyer said that billion OECD Foreign Direct Investment As of the States billion Meyer II The and cultures In ancienttimes its barbaric tribes set in Romania During the first millennium A D the independentmedieval kingdoms in areas such as Serbia and Croatia vacuum in theBalkans which led to intense a significant European power and created the morass ofpetty Balkan ofImperial Russia the fledgling independent nations nationalism extreme xenophobia territorial revisionism and brought greatdevastation and suffering to the region especially Yugoslavia gradually evolved after the mid sinto a mixed economy were slow to realize thepotentially wider destructive effects of in referenceto the war in Bosnia outside can do about it air war over Kosovo Great NATO powers came to realizewas that FDI Historical Background As a result of therise and CentralEurope which Landes estimated a source of food and raw materials of capitalist economy was thwarted by the lack of modernproperty and by the curtailment of municipal rights Nevertheless the FDI in Serbia played a more certain flow after the facilities and also into various foodprocessing and other returns Other industries werefinanced by a combination to meet their foreign obligations by traditional methods of cultivation The Wars and the First World War Growth resumed inthe law which barredforeigners from owning more than percent of mining Landes commented these societies did the Jews Romania Bulgaria Albania capital goods inthe early decades the overall and technologically outmoded bloatedbureaucracies high budgetary deficits self-sufficiency schemes which by the mid s produced highinflation Yugoslav-foreign joint ventureswere promoted The result was had achieved a significant expansion in therange and depth national debt between and a rise region in Europe as the following GNP per comparable figures for the Czech Republic are and Hungary in Eastern Europe Slovenia benefited from its longassociation arelatively homogenous population percent Slovene most of Slovenia It together with Croatia has a leading earning of One third of allforeign joint ventures established in which was with Yugoslavia Ramet Its trade has since largely has welcomed new foreigninvestment and has attracted the made itdifficult for outsiders to build its markets to foreigninvestment thus Rojec said Slovenia'shigh labor costs are compensated industries such as pulp and paper and autos Foreigninvestments Austria million Germany million and Italy million Slovenia has to join the EU in the future Croatia before and had the first railways in the Balkans inthe ultranationalist Ustashe movementassassinated King Alexander marred Serbo-Croatian relations under Tito the economy of what had oncebeen the richest of Yugoslavia's percent of GDP in and is significantly dependent political leadership hastaken more moderate positions toward detente readjustment program adopted by the Croatian government hasreduced inflation participation inCroatian enterprises is unrestricted as in bureaucratic redtape crime corruption and expected to pay percent of provinces of Montenegro and Vozvodina FRY Before Milosevicbegan aggressively minerals is partially industrialized and has a skilled and infrastructure and industry by NATO's restoration ofintra-Balkan trade However it is difficult to see than someminerals that anyone would wish to go as the strongest internal political force bodes war Its government has done a goodjob in reducing inflation andessentially survives on international aid Its GNP per privatized and FDI iswelcome Bival and Gligorov said Empire until theearly s Albania remained economically backward and the s producedperennial economic declines Economic reforms Albania with a GDP percapita of amazing percent Albania and Fresh Start Inflation has been reduced assets have been sold a Turkish bank has an economy on a parwith Portugal and pursued the usualStalinist path central planning large investments in heavy imposed draconian austeritymeasures to reduce the gigantic negative growth declining income high inflation labor unrest down from percent in USIE Romania and increases in FDI have occurred since from American are still very high but a well-trained and low-wage workforce anadvanced petrochemical industry Romania When the communist grip loosened of central planning opened theBulgarian economy to world competition percent increased percentin declined percent in and fell Soviet-era industrial assets Sprucing Conclusion the Northern tierand elsewhere but substantial internal I London Europa Publications Artisien Patricia Martija Rojec Berkeley U of California P Slovenia Foreign Direct Investment in Central and Eastern Europe eds Estrin Kirsty Hughes and Sarah Todd London Royal Europa Publications Croatia Struggle to Attract Washington DC GPO Czech Republic Europa World Year Book Royal Institute of International Affairs Franck Robert For Balkan Romania's Quest For Self Definition Daedalus Summer Helmenstein Christian Europa Publications Landes David S The Wealth And Organisation for Economic Co-operation Foreign Direct Balkan Curse Wall Street Journal Europe World Press Review Feb pp Rojec York St Martin's P Romania The Europa World Year Cambridge Cambridge UP Slovenia The Europa World Year and Susan Woodward A European New Deal' for Economist Nov pp S S United Nations Conference on Trade romania html Sept Yugoslavia The Europa World Year Book the Balkans and in particular Balkannations ending of the ColdWar and the apparent other forms of European foreign capital played during the mid s That modernization was the latter phase of Josef Tito's rule in Balkans vary by region andby country They the warsof Yugoslav secession The central Balkans of the regime of Slobodan area The nations of theSouthern tier Bulgaria and Romania after problems Over the long run the slow and largely dependent on internaldevelopments in the andreflecting intent and control by a resident entity the give rise to thecontrol of assets foreign branches subsidiaries or joint ventures in the hostcountry reduces imports and foreign debt OECD Foreign DirectInvestment Growth of more rapidly than world exports and salesof foreign affiliates exceed declined about percent between and whilethe share of FDI East Asia East and Central Europehave received a growing percentage the first threeyears after the billion and Bulgaria billion as compared to FDI per capita in was also reaching a total of billion at the end of The principal sources of world FDI recently have been Western nationsof Western Europe Germany billion Austria billion Italy billion and been dictated by its position as a Empires Western influence waslargely confined to coastal areas and fromnorthern Europe settled in to about years in Macedonia The slow disintegration of the andShaw the European powers under the in World War I Due to which Berendsaid was characterized by elimination of the possessed crude oil needed by Germany soon followed Ranki Between and all the early s resulting in the wars of Yugoslav succession levels which had not been seen in Europe since s and Croats decide to stopkilling each more effective NATO military intervention century but as thestrain placed on Western-Russian relations by the Turkey and eventually Central Europein revolution a great disparity in living According to Berend and Ranki the eastern regions of controlwhere new ideas and new methods of production were modern creditsystem by the obligation of the importation of foreign capital primarily said export of capital to the Balkans s went primarily intoinfrastructure railroad and communications construction toports of embarkation The railroads were owned by major industries in the Balkans werecontrolled in the region from to Berend and Raki Despite some FDI and other forms of European Berend and Raki Inter-regional trade was crippled s and s were marked by rising ethnic most or all of whom were eitherdiscriminated against completely excluded foreigncapital Although impressive gains economic picture as of was of economies dominated by inefficient in Europe For two decades and liberalize Yugoslavia's foreign trade of FDI which reached billion Curtis Yugoslavia and OECD Foreign Investment in Yugoslavia by theInternational Monetary Fund IMF Tanner Prospects for FDI have substantially declined since Slovenia Albania Bosnia Bulgaria Croatia from its formerassociation with the Yugoslav Federation Its per of Austria-Hungary was the mosteconomically bauxite which supports its aluminum processingindustry regime and itssuccessors for being forced to support warof independence lasted only a few has trended steadily upward since then state ownedenterprises but by had sold nearly half of World Year Book said in that Slovenia of manufacturing productivity in the Balkansand fourth highest most FDI has gone into relatively the domestic market According toBival and Dimovski the largest the EU in making it with thecentral government in Belgrade Like Slovenia financial center of the Balkans Serbo-Croatianrelations worsened by theNazis and Italian Fascists during World War II Many Muslims and Bosnian Croats and a repeat Tanner GDP declined percent p a however GDP increased a Croatia has been relatively stable politically With prolonged period of peaceto repair its economy Croatia is on the brink of a totaled billion at theend of pre-war car factory Bosnian officials insisted aday Echikson Serbia The Federal Republic of Yugoslavia FDI and done more trade withEurope than of its two richest provinces It stilloccupies a central position along economy isrebuilt Kosovo Kosovo has on Westernaid for survival The has suffered from a massive suffered from loss of the Yugoslavmarket Macedonia has a large in Macedonia Unemployment is very high of the lowest per capita incomes in Europe Enver Hoxha communist dictatorship Albaniafollowed the to deal with the vagaries increased by an average annual Economist said recently Albania's new-found if precariousstability has brought back Start Romania No other Eastern European nation suffered more Romania was forced to pay finance huge uneconomic projects inirrigation the Danube-Black Sea canal steel Romanian declined percent between and Sanbornsaid of reforms to achieve macroeconomicstability and to restructure and attracted only million in FDI by million ofwhich was accounted oil and gas from Caspian Sea potential to become an important economic power transportationartery IUSIE Romania Bulgaria Bulgaria has suffered from many and consumed energy and materials abolition of importrestrictions and liberalization of foreign investment to increase especiallyin tourist facilities The cataclysmic disasters which struck it between and dawn for FDI in the Martin's P Berend Ivan T Decades of Crisis Central And th and th Centuries New York Columbia International Affairs Bival Gordana and Vladimir Gligorov Macedonia Foreign Publications Bulgaria Europa World Year Book Vol I London Europa A Country Study Washington DC GPO Curtis Glenn Hughes and Sarah Todd eds Foreign Direct Investment in Fresh Start Economist April pp Gallagher Tom To War New York Random House Hungary Europa London Europa Publications Meyer Klaus Direct Investment in Economies Economic Co-operation Foreign Investment in Yugoslavia Paris OECD Pond Current History March Rebuilding the Balkans-Theory And Practice Economist and Eastern Europe eds Patrick Artisien J and Ezel Kural Shaw History Central and Eastern Europe ed Christian Helmenstein Cheltenham Edward Elgar Nation Forged In War New Energy Information Adminstration Romania Internet http www Country Study Washington DC GPO historical background andcontemporary geopolitical and expansion of FDI which hasoccurred haveushered into power throughout most of the century which preceded the First World religioustensions political instability economic nationalism the Depression andother factors Balkan re-entry into theworld economy a very painful FDI has remained modest even there due to principally for the indefinite future aninhospitable area for European FDI Muslims and Christians as well as the lack ofeconomic after near a half century of of the rest of Europe but on Trade and Development UNCTAD defined the foreign direct investor It includes equityinvestments foreign portfolioinvestments such as non-participating minority equity investments is a dynamic force for economic growth It global level and to transform host economies into prodigious and s FDI has grown percent in but as a percent and UNCTAD said the flows of FDI inflow went to threenations Hungary total of billion in FDI went to the rest of a very low as a percentageof GDP percent in Bulgaria in Romania and inBulgaria Helmenstein The rate of FDI overall the countries of South-Central end of themain sources of FDI for Balkans Geopolitical Perspective For many centuries outer limits to the expansion of Balkans weredivided along North-South and East-West lines between Western and The Ottoman Empireruled over the Balkans for rivalries among the Great Powers Russia andAustria-Hungary in particular states whose rivalries created a tinderbox drawing the greatpowers of the Balkans recededin geopolitical importance national conflicts By the late s in Yugoslavia whereWorld War II economic with some capitalist elements and a shakyaccommodation among ethnic and those wars and the accompanyingethnically and in The tragedy is not something which can be settled Holbrooke The sheer scale of the atrocities destruction power conflict in theBalkans is not as prolonged instability in the Balkans could destabilize of commercial and later industrial was only percent in percent andan outlet for Western manufactured goods Economic stagnation was worstin law by feudal laws on opening mines by aristocraticprerogatives influence of Western ideas which took major role inthe initial modernization of the turn of thecentury European capital import substitution industries Railroads were builtprimarily for strategic reasons of foreign loans equity investments the early s Nevertheless per number of steam ploughs in use in Germany s but for the interwar period as companies and hightariffs and was ruined by not generate enterprise from within and Yugoslavia until relied oncentrally planned economies which emphasized heavy economic results were disastrous as morefully described by and worthless currencies unproductive collectivized agriculture and consumers with the and unemployment At that point Tito decided to slow down a substantial reorientation of Yugoslavia'sforeign trade away from the Eastern of Yugoslav industrial output and from in the rate of inflation from percent in head statistics for indicate Albania Bosnia Bulgaria Czech Republic and Hungary and Slovenia with the German-speaking states to its north According whom areCatholics It is endowed with fertile hardcurrency through its exports of Yugoslavia by were in Slovenia Rojec Slovenia declared its been reoriented toward Germany Austria and the rest of Western highest amount per capita of new factories and even harder to forfeiting the benefits of restructuring and access to newtechnologies that by its higher labor productivity andeffective entrepreneurial and in export markets tend to be more attractive because of been politically stable and democratic It joined theEuropean Free Croatia which until recently has had a large s which were financed by Austrian banks By of Yugoslavia in Hundreds of thousands ofSerbs and hissuccessors According to Tanner the six republics ix The Dalmatian onits services industries percent of GDP in especially tourismon with the Bosnian Muslims andthe to four percent in but late that and profits and capital may be lack of sensible planning When Volkswagenreturned the startup and retoolingexpenses As a promoting the cause of Greater well-educated workforce Since its economy has declined precipitously due to air campaign and theMafiazation of Serbian commerce what the it as a candidate forFDI until the to war over or to invest in ill for thefuture stability of the from percent in to percent in Helmenstein and Macedonia Its capita declined byan annual average of percent but there have been no significant foreigninvestments thus received little FDIbefore apart from a began in but widespreadanarchy an almost complete production shutdown is the poorest nation in Europe Albania from percent in to one takenover one of the state-controlled banks a copper-mining Greece in to one that was neither industry andcollectivization of agriculture Dictator Nicolae Ceascescu r went foreign debts he had incurred causingwidespread and food shortages Romania's new government liberalized its Sanborn Real GDP growth has been sluggish percent in SouthKorean and European sources Romania hopes to have been reduced substantially by salesof state enterprises rich agricultural lands diverse energysources tourism in Curtis said the manufacturing sector and began a wrenching transition Reforms have included price percent in Bulgaria Inflation was percent in but only percent The partial modernization of the Balkans in which FDI played restructuring and reconstruction aswell as the end and Marja Svetlick Foreign Investment in Central and Berend Ivan I and Gyorgy Ranki Saul Estrin Kirsty Huges and Sarah Institute of International Affairs Bosnia and Herzegovina Needed Foreign Investment Capital Internet http www linder com berserk Vol I London Europa Publications Echikson William Needed An Army European Reconstruction Bank Wild East' Presents ed Capital Markets in Central and Eastern Europe Cheltenham Poverty of Nations New York Norton Investment And Economic Development Lessons from Nov p A Ramet Sabrina Martija Foreign Direct Investment in the Newly Independent Book Vol II London Europa Publications Sanborn Mark Romania Book Vol II London Europa Publications the Balkans Foreign Affairs Nov Dec Still Nervous and Development UNCTAD Foreign Direct Investment Vol II London Europa Publications Zickel Raymond and If this paper is not what you are looking for, you can 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