By Klaus Liebscher, Peter Mooslechner, Josef Christl, Doris Ritzberger-Grunwald

With either transition dynamics and the european integration technique having shifted to the south-east of Europe, a area rather marginalized within the literature, this booklet fills a spot through taking inventory of the place South-East Europe’s economies and associations stood in 2004.

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The other problem is that we have to start discussing the status of Kosovo, because otherwise it will remain a black spot on the map. Thus, 2005 will be a critical year also for the international community. After having learnt how we get involved in post-conflict management, we also have to learn how we leave. As of now, no exit strategy has been devised for the office of the High Representative in Bosnia, or for the United Nations Mission in Kosovo (UNMIK), or for the Stability Pact. These initiatives should not be suddenly shut down one day, but it is extremely necessary that they are phased out because policy makers in the region have to assume responsibility.

1961), ‘The International Disequilibrium System’, Kyklos, 14, pp. 153–72. PART I South-East Europe: Where Do Institutions and the Economy Stand? 1. South-East Europe: signs of catching up Michael A. Landesmann INTRODUCTION The 1990s was a decade in which South-East Europe (SEE)1 fell dramatically behind the more advanced transition economies of Central and Eastern Europe (Czech Republic, Hungary, Poland, Slovakia, Slovenia – we shall call them the CEE-5). The cause was, of course, the disintegration of former Yugoslavia, which included a succession of wars, regional conflicts and economic and political disintegration.

THE PROSPECTS OF EU MEMBERSHIP AND PRE-ACCESSION PROGRAMMES Of course, prospects of EU membership are vital for the region. As often said, EU membership is important for qualitative institutional development and provides a catalyst for a major shift in economic policy. But its most important impact is (or was) to shift the political economy within the individual countries towards new incentive structures for the political and economic elites which had vested all their powers in the past in a developmentally and regionally destructive direction.

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