Introduction

The EU, the US, and other OECD countries have engaged in a unique Stability Pact for the Balkans which is designed to help the Western Balkan countries to restore economic ties in the region and to achieve sustained growth after a period of economic decline, partly due to the Kosovo War. Destruction of war and civil unrest, as well as postponed systemic transformation are certainly impediments to trade, growth, and stability in the Balkans. While Poland, Hungary, and other transition countries have achieved an impressive rebound in the course of transformation, the countries in the Balkans have failed to produce similar economic progress. With Milosevic’s rule ending in a democratic election there are new opportunities for the western Balkans to catch up with Central and Eastern Europe.