Montenegro Systematic Country Diagnostic Update

Montenegro Systematic Country Diagnostic Update

Strong boom and bust cycles and Montenegro’s vulnerability to these fluctuations are a critical obstacle to greater prosperity and opportunities for its citizens. Montenegro’s vulnerability to boom-bust cycles was already emphasized as a key development challenge in the previous Systematic Country...

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Bibliographic Details
Main Author: World Bank Group
Format: Report
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
BOOM-BUST CYCLE
BUSINESS CYCLE
ECONOMIC RESILIENCE
VULNERABILITY
MACROECONOMIC MANAGEMENT
SERVICE DELIVERY
NATURAL RESOURCE MANAGEMENT
RULE OF LAW
SUSTAINABLE GROWTH
POVERTY REDUCTION
EU ACCESSION
Online Access:http://documents.worldbank.org/curated/en/390531625727784681/Montenegro-Systematic-Country-Diagnostic-Update
http://hdl.handle.net/10986/35944
id okr-10986-35944
recordtype oai_dc
spelling okr-10986-359442021-07-17T05:10:53Z Montenegro Systematic Country Diagnostic Update World Bank Group BOOM-BUST CYCLE BUSINESS CYCLE ECONOMIC RESILIENCE VULNERABILITY MACROECONOMIC MANAGEMENT SERVICE DELIVERY NATURAL RESOURCE MANAGEMENT RULE OF LAW SUSTAINABLE GROWTH POVERTY REDUCTION EU ACCESSION Strong boom and bust cycles and Montenegro’s vulnerability to these fluctuations are a critical obstacle to greater prosperity and opportunities for its citizens. Montenegro’s vulnerability to boom-bust cycles was already emphasized as a key development challenge in the previous Systematic Country Diagnostic. Several social and economic indicators improved during the period of high economic growth from 2015 to 2019 supported by a construction boom based on large public and private investments in transport, energy, and tourism. But the temporary construction boom based on few prestigious megaprojects also bolstered Montenegro’s vulnerabilities—it elevated macro-financial imbalances, did not create enough good jobs, discouraged the enforcement of environmental standards when competing with strategic investment, and created a narrow group of primary beneficiaries reinforcing vested interests. The COVID-19 pandemic has exposed and exacerbated these vulnerabilities. As a result of this unsustainable growth strategy, many of the constraints causing Montenegro’s vulnerabilities and hindering sustained progress in shared prosperity remain relevant today and threaten its social contract, as well as its pristine natural assets. Improving economic resilience is key to a sustainable recovery and a virtuous cycle of inclusive growth and poverty reduction in Montenegro. 2021-07-16T16:17:42Z 2021-07-16T16:17:42Z 2021-06 Report http://documents.worldbank.org/curated/en/390531625727784681/Montenegro-Systematic-Country-Diagnostic-Update http://hdl.handle.net/10986/35944 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Systematic Country Diagnostic Europe and Central Asia Montenegro
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic BOOM-BUST CYCLE
BUSINESS CYCLE
ECONOMIC RESILIENCE
VULNERABILITY
MACROECONOMIC MANAGEMENT
SERVICE DELIVERY
NATURAL RESOURCE MANAGEMENT
RULE OF LAW
SUSTAINABLE GROWTH
POVERTY REDUCTION
EU ACCESSION
spellingShingle BOOM-BUST CYCLE
BUSINESS CYCLE
ECONOMIC RESILIENCE
VULNERABILITY
MACROECONOMIC MANAGEMENT
SERVICE DELIVERY
NATURAL RESOURCE MANAGEMENT
RULE OF LAW
SUSTAINABLE GROWTH
POVERTY REDUCTION
EU ACCESSION
World Bank Group
Montenegro Systematic Country Diagnostic Update
geographic_facet Europe and Central Asia
Montenegro
description Strong boom and bust cycles and Montenegro’s vulnerability to these fluctuations are a critical obstacle to greater prosperity and opportunities for its citizens. Montenegro’s vulnerability to boom-bust cycles was already emphasized as a key development challenge in the previous Systematic Country Diagnostic. Several social and economic indicators improved during the period of high economic growth from 2015 to 2019 supported by a construction boom based on large public and private investments in transport, energy, and tourism. But the temporary construction boom based on few prestigious megaprojects also bolstered Montenegro’s vulnerabilities—it elevated macro-financial imbalances, did not create enough good jobs, discouraged the enforcement of environmental standards when competing with strategic investment, and created a narrow group of primary beneficiaries reinforcing vested interests. The COVID-19 pandemic has exposed and exacerbated these vulnerabilities. As a result of this unsustainable growth strategy, many of the constraints causing Montenegro’s vulnerabilities and hindering sustained progress in shared prosperity remain relevant today and threaten its social contract, as well as its pristine natural assets. Improving economic resilience is key to a sustainable recovery and a virtuous cycle of inclusive growth and poverty reduction in Montenegro.
format Report
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Montenegro Systematic Country Diagnostic Update
title_short Montenegro Systematic Country Diagnostic Update
title_full Montenegro Systematic Country Diagnostic Update
title_fullStr Montenegro Systematic Country Diagnostic Update
title_full_unstemmed Montenegro Systematic Country Diagnostic Update
title_sort montenegro systematic country diagnostic update
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/390531625727784681/Montenegro-Systematic-Country-Diagnostic-Update
http://hdl.handle.net/10986/35944
_version_ 1764484098400714752

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