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Corruption at the Top is Holding Back Foreign Investments in the Balkans

It was rated in the Investment Climate report published by the US State Department.

All the countries of the Western Balkans continue to have problems with corruption, which is an obstacle to direct foreign investments, according to the report on the Investment Climate published by the US State Department, Beta reports with reference to Radio Free Europe (RSE).

In recent years, the investment climate in Serbia has “modestly” improved, although, as stated, the large political influence on the economy is a concern. The “modest” improvement in the investment climate in Serbia was fueled by macroeconomic reforms, financial stability and fiscal discipline, according to the State Department document.

It is also estimated that attracting foreign investments is an important priority for the Government of Serbia.

“American investors are generally positive about doing business in Serbia because of the country’s strategic location, well-educated English-speaking workforce, as well as investment incentives and free trade agreements with the EU and other key markets,” the report states.

As indicated, there are still challenges in the area of ​​bureaucratic delays, corruption, and inefficient justice, and the political influence on the economy is also a concern.

Public procurement sector

Speaking of Kosovo, it is stated that the dispute with Serbia and corruption are the biggest obstacles to attracting investments.

It also cites a number of minor issues that limit the potential to attract foreign direct investment, including limited regional and global economic integration, political interference in the economy and the judiciary, unreliable energy supplies, corruption and weak rule of law.

Corruption in Montenegro is most widespread in the public procurement sector, while the complex institutional, political and territorial structures of Bosnia and Herzegovina complicate the country’s economic climate and deter foreign investors, the report states.

The government of North Macedonia generally enforces laws, but there are numerous reports of corrupt officials, the State Department points out.