REGIONAL COOPERATION AND ECONOMIC INTEGRATION

FDI FLOWS IN SOUTH EASTERN EUROPE
In the case shown in the Table 4, when we concentrate on the particular index regarding
the fulfilment of the basic requirements for achieving the competitiveness of a certain
country, we notice that the United States are not in the first place but Finland. This data is
included into our examination of the subject as a reference point that shows us the position
of the West Balkan countries compared to the country, which holds the first place on the
list. The situation has not significantly changed compared to the previous situation where
we analysed the global competitiveness index. Thus, we can conclude that Croatia has the
leading position, and then follows Macedonia with Serbia only a few places behind it, while
Bosnia and Herzegovina and Albania are at the bottom of the list. Except from Croatia
that has the best results in the area of stability of the institutional sector, infrastructural
development and the macroeconomic stability, other countries should really put more
efforts to enhance the mentioned areas. In this case, we must note that Serbia, besides
Croatia, has high quality educational system as well as the considerable scientific and
research potential, which contributes to its attractiveness for the investors. The important
favourable conditions for investors are flexible wages, favourable employment policy as
well as the layoff policy and the low costs for the employers that occur when firing their
workers. In this case, it is good to mention one of the many negative characteristics of the
foreign direct investments. Namely, the firing of workers by the foreign investor can cause
the significant social cost that further manifests in its worst form - the urban violence,
crime growth, social and political unrests. Even where there are no such problems, the high
costs caused by the unemployment still exist. They include the serious worry even among
the workers who managed to keep their jobs; they also cause general feeling of alienation,
additional financial burdens for the family members that work, as well as making children
to leave the school in order to help the family. (Stiglic, 2002, p. 71)
Table 5: Global Competitiveness Subindex 2008-2009
Country
Efficiency enhancers
Rank
Score
United States 1 5,18
Slovenia 37 4,45
Croatia 62 4,08
Montenegro 72 3,95
Serbia 78 3,82
Macedonia 92 3,58
Albania 99 3,44
Bosnia and Herzegovina 102 3,42
Chad 134 2,69
Source: The Global Competitiveness Report 2008-2009.
By close inspection of the Table 5 and the following subindex that indicates the possibility
for efficiency increase in the analyzed countries, we notice that the situation slightly
worsens compared to the previous case. The slight differences and discrepancies are also
present here. Serbia is not significantly ranked under Croatia, unfortunately in this respect
Macedonia came closer to Albania that together with Bosnia and Herzegovina has the worst
results in this area. The examined subindex shows us how much those analyzed countries
have advanced in the field of university education, how this educational field functions
and whether the service and goods markets, the financial market and the labour market
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