engleski

Drivers of Economic Reforms in Western Balkans: Conditionality vs. Ownership

The common goal of the Western Balkans countries is to attain membership of the European Union (EU). In its relations with these countries and in the framework of the EU regional approach, Brussels launched its approach of conditionality in 1995. This paper analyses two stages of conditionality: in the context of the EU regional approach and the Stabilisation and Association Process. Conditionality is seen as an evolving process. The regional approach towards “ excluded” countries (i.e. countries without association agreement) was gradual. Different levels of relations with the EU (i.e. trade preferences, the extension of financial assistance and economic cooperation, establishment of contractual relations) were subject to different degrees of conditionality. Yet, at its early stage, the regional approach and its accompanying instruments lacked substantial incentives for reforms, i.e. membership perspective, and did not work as a result. The Stabilisation and Association Process, together with the “ visible and realistic” prospect of membership, now made conditionality work. This time, EU conditionality strengthened and anchored the incentive of national authorities to pursue reforms. The signing of the stabilisation and association agreement, its entering into force, the status of being an EU candidate and opening of EU membership negotiations are regarded as significant steps forward. However, and taking the Croatian experience so far, the relatively slow pace of negotiations, benchmarks and delays in the verification process indicate the limits of conditionality. As a result, a major criterion to evaluate the reform process should be the internalisation of social, political and economic policy making. Acceptance of EU conditions as internal norms can be considered as both a major achievement in the transition process and a decisive step forward in promoting development. Perception of the role of the EU can be used as an indicator of catching up: in early stages of relations, general attitude is for the EU membership. EU is seen as instant solution to inherited problems. As relations evolve awareness about the roles and responsibilities of national governments and role and instruments at the EU level increases. As a result, at more advanced stages the EU is not perceived as solution to the problems, but as a partner in reform process. Thus, general attitude and public opinion towards the EU can be regarded as indication of catching-up. Eventually, when the benefits of the reforms become visible, regardless of the EU membership, conditionality becomes obsolete. Finally, it can be argued that the success of conditionality might be evaluated not merely by the adherence to EU norms and by reducing the differences between candidates and EU member countries, but also in terms of active participation in policy making

Western Balkans; EU; conditionality; ownership

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