Public sector management as a development problem in the countries of Southeast Europe

Mimo Draskovic, Milica Delibasic, Veselin Draskovic, Mladen Ivic, Drago Pupavac


In the period of nearly three decades of post-socialist transition in the countries of Southeastern Europe (SEE), there were numerous synergistic, destructive and anti-developmental hindering institutional factors that directly caused the creation of social and economic insecurity. Many developmental problems, as well as social, economic and institutional deformations, have generated a lasting and deep crisis. This paper analyzes the basic deformations of public sector management, which has emerged as a driving force for all development problems in the SEE countries. It starts with two assumptions: first, weak and slow institutional changes were deliberately programmed by the nomenclature of government, in order to eliminate institutional competition and affirmation of the quasi-institutional monism of neoliberal type, which have enabled the substitutive development of the so-called alternative institutions; and second, highly interest-oriented motives of the government nomenclature have been the main cause of ignoring rational recommendations by representatives of non-institutional economic theories.


sector, public sector management, institutions, Southeast Europe

Full Text:



Acemoglu, D. et al. Institutional causes, macroeconomic symptoms: volatility, crises and growth. Journal of Monetary Economics, 2003, Vol. 50, pp. 49-123.

Acemoglou, D., Robinson, J. A. Why nations fail: the origins of power, prosperity and poverty. London: Profile Books, 2012.

Beg, M, Basarac Sertic, M., Druzic, I. Determinants of Deindustrialisation in Developed European and Post-Communist Countries. Montenegrin Journal of Economics. 2017, Vol. 13, No. 2, pp. 93-106.

Buchanan, J., Prize Lecture, The Constitution of Economic Policy, December 8, 1986.

Buchanan J. М., Robert D. T, Tullock, G. (Eds.). Toward a Theory of the Rent-Seeking Society, College Station: Texas A&M University Press, 1980.

Calabresi, G., Melamed, D. S. Property Rules, Liability Rules, and Inalienability: One Wiew of the Cathedral, Harvard Law Review, 1972, Vol. 85, No. 2, pp. 1089– 1128.

Campbell, J. L. Institutional Change and Globalization, Princeton and Oxford: Princeton University Press, 2004.

Delibasic, M. The Post-socialist Transition Through the Prism of O. Williamson’s Insight. Montenegrin Journal of Economics. 2015, Vol. 10, No. 1, pp. 13–24.

Delibasic, M. “Hypothetical Matrix for Institutional Modeling of the Basis for Economic Development in the Countries of Southeast Europe”, Montenegrin Journal of Economics. 2016, Vol. 12, No. 2, pp. 147-159.

Demsetz, H. Toward a Theory of Property Rights. American Economy Review. 1967, Vol. 57, No. 2, pp. 347-359.

Denzau, A.T., North, D.C. Shared mental models: ideologies and institutions. Kyklos. 1994, Vol. 47, No. 1, pp. 3-31.

Draskovic, M., Bauk, S., Delibasic, M. Testing the Level and Factors of Institutional Rationality in Montenegro, Serbia and Bosnia and Herzegovina. Economics and Sociology. 2016, Vol. 9, No. 2, pp. 22–40.

Draskovic, M., Bauk, S., Streimikiene, D., Draskovic, V. Testing the Level of Alternative Institutions as a Slowdown Factor of Economic Development: the Case of Montenegro. Amfiteatru Economic, 2017, Vol. 19, No. 45, pp. 477-492.

Draskovic, M., Jovovic, R., Draskovic, V., Jovovic, N. Levels and Factors of Transitional Crisis in Bosnia and Herzegovina, Montenegro, and Serbia. Economics and Sociology, 2017, Vol. 10, No. 2.

Draskovic, V., Popov, E., Peleskis, K. K. Modelling of Institutional Changes in Transition Countries - the Gap Between the Theory and Practice, Montenegrin Journal of Economics, 2017, Vol. 13, No. 1, pp. 125-140.

Erznkyan, B. H., Delibashich, M., Grgurevich, N. Institutional Behavior: Theoretical Issues and Practical Realization. Economics of Contemporary Russia. 2014, No. 4 (67), pp. 19–30 (in Rossian).

Evans P. Predatory, Developmental, and Other Apparatuses: A Comparative Political Economy Perspective on the Third World State. Sociological forum. 1989, Vol. 4, No. 4, pp. 561–587.

Hirshleifer, J. Evolutionary Models in Economics and Law: Cooperation versus Conflict Strategies. Research in Law and Economics. 1982, No. 4, pp. 1-60.

Hodgson, G. M. Institutions, recessions and recovery in the transitional economies. Journal of Economic Issues, 2006, Vol. 15, No. 4, pp. 875-894

Kornai, J. Transformational recession: The Main Causes. Journal of Comparative Economics. 1994, No. 19, pp. 39-63.

Kornai J. The Great Transformation of Central Eastern Europe: Success and Disappointment – First Published. Montenegrin Journal of Economics. 2006, No. 2(4), pp. 11–38.

Landes, D. S. The wealth and poverty of nations: why some countries are so rich and some so poor. New York: WW Norton, 1998.

Marcouiller, D., Young, L. The Black hole of graft: the predatory state and the informal economy", American Economic Review. 1995, Vol. 85, No. 3, pp. 630-646.

Mesaric M. Neo-Liberalism Vs. Planning as a Institute of Socio-Economic Development./ Montenegrin Journal of Economics. 2011, Vol. 7, No. 2, pp. 5–20.

Nordhaus, W. D. The Political Business Cycle. The Review of Economic Studies. 1975, Vol. 42, No. 2, pp. 169-190

North, D. C. Structure and Change in Economic History, New York: Norton, 1981.

North, D. C. Institutions, transaction cost and economic growth. Economic Inwuiry. 1987, Vol. 25, No. 3, pp. 418-432.

North, D. C. Economic Perfomanse through Time. American Economic Review. 1994, Vol. 84, No. 3, pp. 359-368.

North, D. C. Understanding the process of institutional change. Princeton University Press, 2005.

Polterovich V. M. General Institutional Analysis and Design of Reforms. Journal of the New Economic Association. 2013, No. 1 (17), pp. 185-188.

Popov, E. V. Transactions & Institutions. Montenegrin Journal of Economics. 2012, Vol. 9, No. 2, pp. 115-124.

Popov, E.V., Ersh, E.V. Institutions for decreasing of employee opportunism. Montenegrin Journal of Economics, 2016, Vol. 12, No. 2, pp. 131-146.

Rodrik, D. One economics, many recipes: globalization, institutions, and economic growth. Prinston: Prinston University Press, 2007.

Sinkienė, J. et al. Interdisciplinary Perspectives on the Study of Vital Urban Communities. Public Policy and Administration. 2017, Vol. 16, No 1, pp. 9-23.

Stiglitz, J. Formal and informal institutions in social capital: a multifaceted perspective, eds. Dasgupta, P. and Serageldin, I.. Washington: The World Bank, 2000.

Scekic R., Draskovic M., Delibasic M. (2016), Neoliberalism in geoeconomics: the case of Southeast Europe, Journal of International Studies, Vol. 9, No 1, pp. 66-75.

Strielkowski, W., Tumanyan, Y., Kalyugina, S. (2016), Labour Market Inclusion of International Protection Applicants and Beneficiaries, Economics and Sociology, Vol. 9, No 2, pp. 293-302.

The Global Competitiveness Report 2008-2009, World Economic Forum, 2008.

Williamson, O. E. The institutions and governance of economic development and reform. In Proceedings of the World Bank Annual Conference on Development Economics 1994, Washington: World Bank, pp. 171-197, 1995.

Yerznkyan, B.H. Pluralistic institutional solutions of the problem of externalities. Montenegrin Journal of Economics. 2012, Vol. 8, No. 2, pp. 73-86.

Young, S. Moral Capitalism: Reconciling Private Interest with Public Goods. San Francisco: Berret Kohler Publishing, 2003.

Uryszek, T (2015), Sustainable public finance – illusion or reality? Evidence from old EU member states, Journal of International Studies, Vol. 8, No 1, 2015, pp. 22-30.



  • There are currently no refbacks.

"Public Policy and Administration" ISSN online 2029-2872 / ISSN print 1648-2603