engleski

Alternative development paths, institutions and FDI

Different institutional development bases result into the different development patterns (developmental paths). Thus, aiming to a successful catch-up, it is necessary to establish a sound developmental strategy, harmonized with the structural reforms. Moreover, strategies have to be elaborated through different policies, including the policy for the FDI attraction. In other words, the FDI attraction policy has to be understood only as a part of an overall development policy that, in turn, changes according to the changes in the institutional structure. State, being a part of the institutional structure, bears a great deal of total social responsibility for the success of reforms. Such a thesis could seem somewhat obsolete in the framework of modern process of globalisation that seems to prefer entrepreneurship and private endeavours. But, the authors argue that it is false preference because the globalisation always implies standardization as well as setting up of institutions at regional and/or supranational level. Moreover, such an approach calls for international economic regime that would be friendlier towards specific development patterns of different countries. From the EU enlargement perspective, with regard to the transition economies, the EU itself will have to reconsider its role of a supranational, regional development agency as to allow different institutional arrangements and (even divergent) development policies. Consequently, it would have to consider additional measures and devote much more resources to facilitate the catch-up of the laggards in transition with lower level of development. As far as the FDI are concerned, the EU would have to concentrate on FDI drivers such as legal environment, enhancement of private sector and local solutions, etc.

alternative development paths; institutions; FDI

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