TFL Vsebine / Revija Slovenska arbitražna praksa

Whereas most countries in the Western Balkans are still suffering severely from the global economic downturn, there are plenty of reasons to be optimistic about the region’s positive long-term economic development. Across the region, countries have made an effort to attract foreign direct investment, which is widely considered as the biggest chance to increase production, employment, export and living standard in the long term. Regional economic integration, especially cross-border investment, among former Yugoslav states seems to have recovered after the break-up of former Yugoslavia. Slovenian investors, in particular, have been pioneers in this regard. According to data provided by the Bank of Slovenia, the majority of direct investments by Slovenian companies (71.52%) go to the countries in the Western Balkans (the cumulative value of Slovenian investments to the Western Balkans amounted to EUR 3.935 billion in late 2009). Given the cultural similarities, the common language, the family and business connections across states, the mutual knowledge of each other’s markets and the continuing liberalization, the potential for deeper economic integration in the Western Balkans is obvious. Moreover, the regional economic disparities provide additional incentives for foreign investment. Over the next decade, Croatian investors are likely to follow the path of their Slovenian peers and increase their investment exposure in neighbouring countries in the Western Balkans.