Structural Reforms — Is South East Europe Stuck?

Abstract

This chapter explores the record on structural reform in SEE in more detail. It finds that considerable advances were made in restructuring during the first two phases of transition described above, but progress since then was meagre. While it is heartening that there is little evidence of these early reforms being reversed, the appetite for further reforms (which are urgently needed) in the prevailing climate of slow growth and high unemployment is limited. Worryingly, the crisis and its aftermath have damaged public support for markets and faith in democracy, and eroded trust in public institutions — especially in the political process. This will make the task of reinvigorating the reform agenda even more difficult.