Introduction

Abstract

In broad terms over the past two decades or so, governments in the Western Balkans have been transitioning from socialist regimes, centrally planned economies, and the legacy of armed conflicts. They have actively engaged in building new (and where appropriate transforming existing) economic, political, social and legal institutions as part of the transition to democratic and market-oriented regimes in the European Union neighbourhood. Broad policy changes in the economic, social and governance spheres have been pursued, all aimed at stimulating competitiveness as a critical factor for generating sustained economic growth and development.