engleski

Economic Alternatives for the Balkans

The global economic crisis, which began with the collapse of the U.S. real estate market in 2007-2008, was reflected unevenly in the Balkans, but had similar end results. Growth in the region prior to the crisis had been founded on the inflow of foreign capital, which was financed by the overvaluation of domestic currencies, so that borrowing would be cheaper. This resulted in the domestic economies becoming progressively less competitive, due to the technological gap with the developed countries. The weakening of the competitiveness and the purchasing power of the Balkan countries was covered for some time by further borrowing, leading to the even greater unsustainability of the rising debt. The results were similar everywhere: the privatisation of state and public property, often at prices below market value, for the purpose of filling the budget or further concessions to strategic investors ; the growth of a comprador bourgeoisie and the mafia, with a resulting and disastrous corruptive influence on state apparatus ; socialisation of private debt and budget cuts, de-industrialisation and the destruction of the welfare state, the concentration of wealth and power in the hands of a very small number of people drawn from the already mentioned comprador bourgeoisie, alongside the impoverishment of the rest of the population, and the deepening economic and political dependence of the Balkan countries and the strengthening of repressive governments. The article explores possible exit routes and alternatives for the Balkans: economic democracy, employees and consumers own(ed) companies, democratization of the work process and macroeconomic measures that support democratic economy, such as minimum guaranteedsocial income.

economic alternatives; crisis; balkans; economic democracy; ESOP; minimum guaranteed social income

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