External Two Stage DEA Analysis of Bank Efficiency in West Balkan Countries

Since the beginning of the application of the Data Envelopment Analysis (DEA) model in various areas of the economy, it has found its wide application in the field of finance, more specifically banks, in the last few years. The focus of this research was to determine the sustainability of the intermediate function of banks, especially in recent years when interest rates on deposits have been at a minimum level. The research was divided into two parts, wherein the first part determined the efficiency of the intermediate function of banks in the countries of the Western Balkans in the period from 2015 to 2019. The second part approached the regression analysis in which we determined the influence of the bank size, type of bank, and mergers and acquisitions (M&A) activity on the defined efficiency. In the first stage we applied the output-oriented DEA model using deposits, labor costs, and capital as input variables; on the other side, we used loans and investments as output variables. We used data from the revised financial statements of the banks operating in Serbia, Bosnia and Herzegovina, Montenegro, North Macedonia, and Albania. The results of our study showed that there is a difference in efficiency levels between countries and within countries in the considered time period. Furthermore, Tobit regression analysis showed a significant and negative influence of the bank type and M&A on relative technical efficiency of banks, and a positive and significant relationship between bank size and relative efficiency. These findings suggest that large commercial banks can sustain on the West Balkan market. It is to be expected that less efficient small banks will be taken over by large and more efficient banks.

Along the Rivers and into the Plain: Early Crop Diversity in the Central and Western Balkans and Its Relationship with Environmental and Cultural Variables

Agriculture is a complex and dynamic socio-ecological system shaped by environmental, economic, and social factors. The crop resource pool is its key component and one that best reflects environmental limitations and socio-economic concerns of the farmers. This pertains in particular to small-scale subsistence production, as was practised by Neolithic farmers. We investigated if and how the environment and cultural complexes shaped the spectrum and diversity of crops cultivated by Neolithic farmers in the central-western Balkans and on the Hungarian Plain. We did so by exploring patterns in crop diversity between biogeographical regions and cultural complexes using multivariate statistical analyses. We also examined the spectrum of wild-gathered plant resources in the same way. We found that the number of species in Neolithic plant assemblages is correlated with sampling intensity (the number and volume of samples), but that this applies to all archaeological cultures. Late Neolithic communities of the central and western Balkans exploited a large pool of plant resources, whose spectrum was somewhat different between archaeological cultures. By comparison, the earliest Neolithic tradition in the region, the Starčevo-Körös-Criş phenomenon, seems to have used a comparatively narrower range of crops and wild plants, as did the Linearbandkeramik culture on the Hungarian Plain.

Circular Economy in Construction and Demolition Waste Management in the Western Balkans: A Sustainability Assessment Framework

Population growth, consumerism and linear (take-make-dispose) economy models have been piling up waste for decades. The construction industry is also based primarily on linear economy models, but the good news is that most of the waste can be re-used or recycled. So far, numerous models for managing construction and demolition waste in a sustainable way have been developed, but only a few models have included circular economy approaches. The main objective of this study is to propose an integrated framework for the sustainability assessment of CDW management. Apart from the economic, environmental and social aspects of sustainability, this model also includes circular economy principles. The proposed framework is based on the integration of existing methods: bottom-up materials stock approximation; cost–benefit analysis for criteria calculation; and scenario and multi-criteria decision-making analysis for sustainability. It is suggested that the European average recovery rates should be used for future scenario development. With higher re-use and recycling rates, the potential for the circularity of the recovered waste grows. In an effort to increase circularity in the region, particular attention was devoted to customize the framework and examine its potential for use in the Western Balkan countries. The framework may also be useful in countries with immature construction and demolition waste management.

Western Balkans might seek new relationship with EU

Significance Non-economic priorities such as nation-building and partisan political interests have often shaped large developmental projects in the Western Balkans, facilitated by no-questions-asked capital from China, Russia and Turkey. The COVID-19 pandemic has created the opportunity to attract more promising projects, not least in the pharma and digital sectors. More vigorous assessment of the environmental and economic consequences of state-led development could facilitate the region’s prosperity and alignment with the EU. Impacts Civil society groups will put significant pressure on governments and investors to raise standards. Calls for the EU to support civil society and activists in Western Balkans directly will intensify. Serbia’s economic assertiveness could contribute to isolating Kosovo and encouraging breakaway tendencies in Bosnia’s Republika Srpska (RS).

Climate change in the Western Balkans and EU Green Deal: status, mitigation and challenges

Background The European Commission (EC), based on the European Green Deal (2019) and the Recovery plan for Europe (2021), envisages investing 30% of the budget in climate-related programs, projects, and initiatives, which clearly shows Europe's commitment to becoming the first climate-neutral region by 2050. Activities are also planned for countries that are not members of the European Union (EU), which require complex changes in the field of legislation, strategic planning, implementation, and monitoring. To successfully plan short-term and long-term activities on these grounds, it is necessary to have a realistic picture of the state of climate change in each country—as they spill over into the entire region of Europe. The main objective of this paper is to answer the following questions: (i) is climate change observed in Western Balkans? (ii) how are certain sectors vulnerable to climate change in Western Balkans? (iii) what are the climate change adaptation strategies in the six countries of the Western Balkans? The answers to these questions can help in planning activities and initial alignment of Western Balkan countries with the EU plan to achieve net zero greenhouse gas (GHG) emissions by 2050. Main body The main results of the research show that in all countries of the region, the average annual temperature increased by 1.2 °C compared to 1970, with stabilization and the beginning of the decline which can be expected around 2040. The main reasons for climate change in the region are: industry, energy, and heating sector based on coal exploitation, low energy efficiency, etc. Conclusions It can be concluded that Croatia as a member of the EU has adopted, and other five Western Balkans countries are in the process of adopting the necessary regulations and strategies towards climate change mitigation, but the implementation of specific activities is at a low level. The reason for this most often lies in the insufficient commitment of decision-makers to make significant changes in the field of climate change transition (lower level of economic development, lack of investment, and preservation of social peace). Finally, this paper provides an overview of climate change by country, scenario analysis, and policy recommendations.

From a Protectorate to a Member State of the European Union

The European Union was present in Kosovo even before the declaration of its independence. However, it was after 2008 and at the request of the Kosovar authorities to EU that Kosovo inaugurated a period of close ties with the organization, through the rule of law mission it launched for the country and through various programs of the European Commission, including the European Partnership Action Plan (EPAP) for Kosovo, Mechanism of the Stabilization and Association Process, and the Instrument of Pre-Accession (IPA). This chapter seeks to examine the evolution of European presence on Kosovo by analysing EULEX mission and other European instruments and the achievements by newly former states in achieving the Copenhagen criteria, contributing to the academic debate on the role of European Union aid in the new Western Balkans states for their emancipation and possible access to the organization. It also evaluates the mutualisation of responsibilities and maintenance of the European status quo in Kosovo, fostering a protectorate in an independent state.

The Integration of the Eastern and Western Balkans into the EU and NATO

This chapter puts the European and Euro-Atlantic integration of the Balkans into the spotlight and further analyzes the reactions from Russia. This integrative process is a relevant intention, especially after the revolutionary changes of the 1990s and the collapse of the communist bloc. Literature is scarce, lacks an integrated approach, and barely addresses the topic from a comparative perspective. This research seeks to fill this gap through an empirical, systematic, and comparative analysis of the integration and disintegration processes across the region. The argument is that the integration is asymmetric, both between the two international organizations and between the two sub-regions, and that Russian investment decreases as integration goes forward. Findings highlight the complex interactions and interdependencies of the three mutually exclusive processes: the integration into the EU and NATO, the internal fragmentation of the region, and a transformation in the relationship with Russia when chasing the enlargement into these structures.

Strategic and Legal Framework of Torrential Flood Control in Some Western Balkan and EU Countries

The EU countries are obliged to harmonize their legislation in the field of flood protection, and thus torrential floods, in accordance with the Water Framework Directive (WFD) which was adopted in 2000. Two EU countries, Austria and Italy, and three Western Balkan countries were selected for the strategic and legal framework of torrential flood control: Serbia, North Macedonia, and Bosnia and Herzegovina. In addition to the legal framework of torrential flood control in EU countries, policies and strategies related to this area were studied for comparative analysis with non-EU countries. The strategic framework for the protection of water resources, and in particular torrential flood protection, is lacking in all Western Balkan countries. The aim of this chapter is to determine the directions of future strategic directions and torrential flood control policies in the Western Balkans based on the experiences of EU countries, advantages and disadvantages of the existing strategic, and legal frameworks.

The EU's Transformative Power in Albania

South-Eastern Europe has always been a vital region with continuous socio-political changes. After the fall of communism and the wars that accompanied the disintegration of Yugoslavia, countries in the region turned towards the European Union. Upon signing the SAA, the countries of the Western Balkans, such as Albania, have had a green light to move forward in the EU's pre-accession process. As Albania works toward membership, how do domestic political actors in Albania (not) change their with agendas according to EU requirements? This chapter will address the puzzle of the transformative power of EU's conditionality in main political parties in Albania.