IMPACT ON GLOBALIZATION TREND OF MOVEMENT OF EXTERNAL DEBT IN THE WESTERN BALKANS

Abstract

Globalization is seen as a process of transformation of regional phenomena into global and represents the interdependence of world society with the operation of the remote locations. It is considered the main vehicle for the implementation of neo-liberal concept of economy that is in the Western Balkans, its implementation began in the early nineties of the XX century. The Western Balkans is its geographical position was the boundaries between cultures, religions, nations and states. Throughout history, the political turmoil in this region has been a major conflicts, which affected the economic policies of the countries and the region. In this way, the region lost balance as reflected in the decrease in the volume of trade and increased borrowing mainly from international financial institutions. The growth of debt resulted in the increase in external debt (public and private sectors), which led to an imbalance in economic development and macroeconomic stability in the society. The aim of the paper is to determine to what extent the process of globalization has led to an increase / influence on increasing trend of foreign debt in the countries of the Western Balkans (Albania, Bosnia and Herzegovina, FYR Macedonia, Montenegro and Serbia) in the period 2004-2014. years. The work is in addition to the introduction consists of three parts. The first analyzes the problem of growth of external debt, the second analyzes the trend of the external debt of the private and public sector, while the third analyzes the current account balance and economic growth in the Western Balkans. In addition, at the end of the data concluding observations.

Keywords

• Globalization
• analysis
• external debt
• the countries of the Western Balkans