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"In Chapter 2 the process of the discovery of liberalism during the communist rule is discussed and the reasons for its failure given. All the classical liberal ideas were discovered in Yugoslavia in conflict with the socialist principles; they failed to play a key role in the transformation of the country because they did not arise from an idea of a Yugoslav state."--ABSTRACT. "In Chapter 3 a "straightforward explanation" of the break up of Yugoslavia is given. It is argued that the state did not break up for economic reasons (as a way to get out of socialism), but for the following two reasons: (i) independent ethnic state is the long term strategy of Serbs and Croats (the two dominant Yug...
In "Part Two", we discuss in greater detail the conditions required to move towards a sustained growth and catching-up process. We analyse the problematic states of transition in some of the SEE economies as well as the basic disequilibria (fiscal, external, labour markets) which need to be resolved for sustained development to take place. The prospects of making up for the lost decade and dealing with the unresolved disequilibria will be a crucial issue in evaluating the prospects of EU accession some time in the future. We discuss the stumbling blocks both from the SEE side and the EU side in developing a clear perspective of integration with the EU. ..."--Editor.