Serbia and Montenegro : Republic of Montenegro, Economic Memorandum, A Policy for Growth and Competitiveness
Beginning in the late 1990s, Montenegro's economic reform program reached momentum in the early 2000s. Its reform program rested on two broad pillars: macroeconomic stabilization, and market-oriented structural reforms. However, the macroeconomic and structural reforms have yielded modest econo...
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| Format: | Country Economic Memorandum |
| Language: | English en_US |
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Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/10/6408013/serbia-montenegro-republic-montenegro-economic-memorandum-policy-growth-competitiveness http://hdl.handle.net/10986/8328 |
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okr-10986-8328 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ACCOUNTING STANDARDS ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET PROGRAMS ANNUAL POPULATION GROWTH RATE ASYMMETRIC INFORMATION AVERAGE WAGES BANKRUPTCY BUDGET EXECUTION BUDGET FORMULATION CAPITAL NEEDS COLLECTIVE AGREEMENT COLLECTIVE AGREEMENTS COLLECTIVE BARGAINING COMPETITIVENESS CONSUMERS CONTRACT ENFORCEMENT CORPORATE GOVERNANCE DEBT DECENTRALIZATION DEFICIT FINANCING DEFICITS DOMESTIC MARKET DUMPING EARLY RETIREMENT ECONOMIC GROWTH ECONOMIC RECOVERY ECONOMIC REFORM EMPLOYMENT EMPLOYMENT DYNAMICS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EXPORTS FINANCIAL INTERMEDIATION FINANCIAL SECTOR FIRM LEVEL FISCAL BALANCE FISCAL REFORMS GDP GOVERNMENT SUBSIDIES GROWTH GROWTH POTENTIAL HARD BUDGET CONSTRAINTS HIGH UNEMPLOYMENT HIGH WAGE HOUSING INCOME TAXES INFLATION INFORMAL EMPLOYMENT INFORMAL SECTOR INSURANCE INTEREST RATES JOBS LABOR COMPENSATION LABOR COSTS LABOR FORCE LABOR FORCE GROWTH LABOR LAW LABOR MARKET LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATIONS LABOR RELATIONS LABOR SUPPLY LAND USE LICENSES LOCAL GOVERNMENTS LONG-TERM UNEMPLOYMENT MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MATERNITY LEAVE MUNICIPALITIES NON-WAGE COSTS PART-TIME EMPLOYMENT PAYROLL TAXES PER CAPITA INCOME PRIVATE SECTOR PRIVATE SECTOR INVESTMENT PROPERTY RIGHTS PUBLIC PUBLIC DEBT PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC PROCUREMENT PUBLIC PROCUREMENT PROCEDURES PUBLIC SECTOR PUBLIC SERVICES REAL GDP REAL INTEREST RATE RETIREMENT ROADS SEVERANCE PAYMENTS SKILLED LABOR SOCIAL WELFARE STATE-OWNED ENTERPRISES TAX TAX COLLECTION TAXATION TOTAL EMPLOYMENT TRADE LIBERALIZATION TRANSITION ECONOMIES TRANSPARENCY TREASURY TREASURY BILLS UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATES VOCATIONAL TRAINING VOCATIONAL TRAINING PROGRAMS WAGE BILL WAGE GROWTH WAGE LEVELS WAGE NEGOTIATIONS WORKERS |
| spellingShingle |
ACCOUNTING ACCOUNTING STANDARDS ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET PROGRAMS ANNUAL POPULATION GROWTH RATE ASYMMETRIC INFORMATION AVERAGE WAGES BANKRUPTCY BUDGET EXECUTION BUDGET FORMULATION CAPITAL NEEDS COLLECTIVE AGREEMENT COLLECTIVE AGREEMENTS COLLECTIVE BARGAINING COMPETITIVENESS CONSUMERS CONTRACT ENFORCEMENT CORPORATE GOVERNANCE DEBT DECENTRALIZATION DEFICIT FINANCING DEFICITS DOMESTIC MARKET DUMPING EARLY RETIREMENT ECONOMIC GROWTH ECONOMIC RECOVERY ECONOMIC REFORM EMPLOYMENT EMPLOYMENT DYNAMICS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EXPORTS FINANCIAL INTERMEDIATION FINANCIAL SECTOR FIRM LEVEL FISCAL BALANCE FISCAL REFORMS GDP GOVERNMENT SUBSIDIES GROWTH GROWTH POTENTIAL HARD BUDGET CONSTRAINTS HIGH UNEMPLOYMENT HIGH WAGE HOUSING INCOME TAXES INFLATION INFORMAL EMPLOYMENT INFORMAL SECTOR INSURANCE INTEREST RATES JOBS LABOR COMPENSATION LABOR COSTS LABOR FORCE LABOR FORCE GROWTH LABOR LAW LABOR MARKET LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATIONS LABOR RELATIONS LABOR SUPPLY LAND USE LICENSES LOCAL GOVERNMENTS LONG-TERM UNEMPLOYMENT MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MATERNITY LEAVE MUNICIPALITIES NON-WAGE COSTS PART-TIME EMPLOYMENT PAYROLL TAXES PER CAPITA INCOME PRIVATE SECTOR PRIVATE SECTOR INVESTMENT PROPERTY RIGHTS PUBLIC PUBLIC DEBT PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC PROCUREMENT PUBLIC PROCUREMENT PROCEDURES PUBLIC SECTOR PUBLIC SERVICES REAL GDP REAL INTEREST RATE RETIREMENT ROADS SEVERANCE PAYMENTS SKILLED LABOR SOCIAL WELFARE STATE-OWNED ENTERPRISES TAX TAX COLLECTION TAXATION TOTAL EMPLOYMENT TRADE LIBERALIZATION TRANSITION ECONOMIES TRANSPARENCY TREASURY TREASURY BILLS UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATES VOCATIONAL TRAINING VOCATIONAL TRAINING PROGRAMS WAGE BILL WAGE GROWTH WAGE LEVELS WAGE NEGOTIATIONS WORKERS World Bank Serbia and Montenegro : Republic of Montenegro, Economic Memorandum, A Policy for Growth and Competitiveness |
| geographic_facet |
Europe and Central Asia Europe Serbia |
| description |
Beginning in the late 1990s, Montenegro's economic reform program reached momentum in the early 2000s. Its reform program rested on two broad pillars: macroeconomic stabilization, and market-oriented structural reforms. However, the macroeconomic and structural reforms have yielded modest economic recovery and transition, holding a current account deficit, which although still high, is improving; yet its principal human welfare indicators such as poverty, life expectancy, and adult literacy remained moderate and stable. But significant challenges remain. Three key challenges confront policy makers in Montenegro. First, past economic growth has been inadequate. Second, the limited growth recovery has not been accompanied by employment growth. Third, despite reforms, Montenegro has become less competitive over the last four years: its real exchange rate, based on movements in unit labor costs, has risen much faster than that of the European Union (EU) zone and the United States. Therefore, recommendations suggest key labor market reforms need to be undertaken to increase employment, growth, and competitiveness, through specific measures to: control the rapid wage growth witnessed in recent years; relax some aspects of the labor regulations; and, reduce the high rates of labor taxation, in a fiscally responsible way to encourage formal employment. Enterprise privatization and restructuring needs to: speed up the restructuring of the mass-voucher- privatized companies, and, speed up the consolidation into majority shares of the companies' shares being traded on stock exchanges. Furthermore, key constraints facing the emerging private sector, including businesses in the informal sector, must be removed, reducing specific governance and regulatory bottlenecks, and the backlog of commercial court cases, to speed up contract enforcement; while in addition, land title transparency and property rights must be improved. The cost of capital needs to be reduced, and financial intermediation improved, while employment creation, growth, and competitiveness should be increased through Government's help, by undertaking fiscal reforms. Finally, tourism holds considerable promise for Montenegro's export-oriented growth, and employment creation. |
| format |
Economic & Sector Work :: Country Economic Memorandum |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Serbia and Montenegro : Republic of Montenegro, Economic Memorandum, A Policy for Growth and Competitiveness |
| title_short |
Serbia and Montenegro : Republic of Montenegro, Economic Memorandum, A Policy for Growth and Competitiveness |
| title_full |
Serbia and Montenegro : Republic of Montenegro, Economic Memorandum, A Policy for Growth and Competitiveness |
| title_fullStr |
Serbia and Montenegro : Republic of Montenegro, Economic Memorandum, A Policy for Growth and Competitiveness |
| title_full_unstemmed |
Serbia and Montenegro : Republic of Montenegro, Economic Memorandum, A Policy for Growth and Competitiveness |
| title_sort |
serbia and montenegro : republic of montenegro, economic memorandum, a policy for growth and competitiveness |
| publisher |
Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/10/6408013/serbia-montenegro-republic-montenegro-economic-memorandum-policy-growth-competitiveness http://hdl.handle.net/10986/8328 |
| _version_ |
1764405097280831488 |
| spelling |
okr-10986-83282021-04-23T14:02:39Z Serbia and Montenegro : Republic of Montenegro, Economic Memorandum, A Policy for Growth and Competitiveness World Bank ACCOUNTING ACCOUNTING STANDARDS ACTIVE LABOR ACTIVE LABOR MARKET ACTIVE LABOR MARKET PROGRAMS ANNUAL POPULATION GROWTH RATE ASYMMETRIC INFORMATION AVERAGE WAGES BANKRUPTCY BUDGET EXECUTION BUDGET FORMULATION CAPITAL NEEDS COLLECTIVE AGREEMENT COLLECTIVE AGREEMENTS COLLECTIVE BARGAINING COMPETITIVENESS CONSUMERS CONTRACT ENFORCEMENT CORPORATE GOVERNANCE DEBT DECENTRALIZATION DEFICIT FINANCING DEFICITS DOMESTIC MARKET DUMPING EARLY RETIREMENT ECONOMIC GROWTH ECONOMIC RECOVERY ECONOMIC REFORM EMPLOYMENT EMPLOYMENT DYNAMICS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EXPORTS FINANCIAL INTERMEDIATION FINANCIAL SECTOR FIRM LEVEL FISCAL BALANCE FISCAL REFORMS GDP GOVERNMENT SUBSIDIES GROWTH GROWTH POTENTIAL HARD BUDGET CONSTRAINTS HIGH UNEMPLOYMENT HIGH WAGE HOUSING INCOME TAXES INFLATION INFORMAL EMPLOYMENT INFORMAL SECTOR INSURANCE INTEREST RATES JOBS LABOR COMPENSATION LABOR COSTS LABOR FORCE LABOR FORCE GROWTH LABOR LAW LABOR MARKET LABOR MARKET REFORM LABOR MARKET REFORMS LABOR MARKETS LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REGULATIONS LABOR RELATIONS LABOR SUPPLY LAND USE LICENSES LOCAL GOVERNMENTS LONG-TERM UNEMPLOYMENT MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MATERNITY LEAVE MUNICIPALITIES NON-WAGE COSTS PART-TIME EMPLOYMENT PAYROLL TAXES PER CAPITA INCOME PRIVATE SECTOR PRIVATE SECTOR INVESTMENT PROPERTY RIGHTS PUBLIC PUBLIC DEBT PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC PROCUREMENT PUBLIC PROCUREMENT PROCEDURES PUBLIC SECTOR PUBLIC SERVICES REAL GDP REAL INTEREST RATE RETIREMENT ROADS SEVERANCE PAYMENTS SKILLED LABOR SOCIAL WELFARE STATE-OWNED ENTERPRISES TAX TAX COLLECTION TAXATION TOTAL EMPLOYMENT TRADE LIBERALIZATION TRANSITION ECONOMIES TRANSPARENCY TREASURY TREASURY BILLS UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATES VOCATIONAL TRAINING VOCATIONAL TRAINING PROGRAMS WAGE BILL WAGE GROWTH WAGE LEVELS WAGE NEGOTIATIONS WORKERS Beginning in the late 1990s, Montenegro's economic reform program reached momentum in the early 2000s. Its reform program rested on two broad pillars: macroeconomic stabilization, and market-oriented structural reforms. However, the macroeconomic and structural reforms have yielded modest economic recovery and transition, holding a current account deficit, which although still high, is improving; yet its principal human welfare indicators such as poverty, life expectancy, and adult literacy remained moderate and stable. But significant challenges remain. Three key challenges confront policy makers in Montenegro. First, past economic growth has been inadequate. Second, the limited growth recovery has not been accompanied by employment growth. Third, despite reforms, Montenegro has become less competitive over the last four years: its real exchange rate, based on movements in unit labor costs, has risen much faster than that of the European Union (EU) zone and the United States. Therefore, recommendations suggest key labor market reforms need to be undertaken to increase employment, growth, and competitiveness, through specific measures to: control the rapid wage growth witnessed in recent years; relax some aspects of the labor regulations; and, reduce the high rates of labor taxation, in a fiscally responsible way to encourage formal employment. Enterprise privatization and restructuring needs to: speed up the restructuring of the mass-voucher- privatized companies, and, speed up the consolidation into majority shares of the companies' shares being traded on stock exchanges. Furthermore, key constraints facing the emerging private sector, including businesses in the informal sector, must be removed, reducing specific governance and regulatory bottlenecks, and the backlog of commercial court cases, to speed up contract enforcement; while in addition, land title transparency and property rights must be improved. The cost of capital needs to be reduced, and financial intermediation improved, while employment creation, growth, and competitiveness should be increased through Government's help, by undertaking fiscal reforms. Finally, tourism holds considerable promise for Montenegro's export-oriented growth, and employment creation. 2012-06-18T19:31:57Z 2012-06-18T19:31:57Z 2005-10 http://documents.worldbank.org/curated/en/2005/10/6408013/serbia-montenegro-republic-montenegro-economic-memorandum-policy-growth-competitiveness http://hdl.handle.net/10986/8328 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Country Economic Memorandum Economic & Sector Work Europe and Central Asia Europe Serbia |