Slovenia: From Yugoslavia to the European

Thirteen years after independence from the former Socialist Republic of Yugoslavia, Slovenia has become one of the most advanced transition economies in Central and Eastern Europe and will become a member of the EU in May 2004. This publication examines the country's recent political and socio-economic history, its transition to a market economy and the challenges that lie ahead. It includes contributions from Slovenia's president, a former vice prime minister, the current and previous ministers of finance, the minister of European Affairs, the current and former governors of the Bank of Slovenia, as well as from leading development scholars in Slovenia and abroad.

Foreword

ix

Preface and Acknowledgments

xi

Acronyms and Abbreviations

xv

Overview: Slovenia's Threefold Transition

xix

Part I The Road toward Political and Economic Independence

1

(112)

The Political Reasons for the Dissolution of SFR Yugoslavia

3

(12)

Janez Drnovsek

Socialism and the Disintegration of SFR Yugoslavia

15

(17)

Vladimir Gligorov

Independence and Integration into the International Community: A Window of Opportunity

32

(21)

Bojko Bucar

Institutional Setting for the New Independent State

53

(14)

Neven Borak

Bistra Borak

Transition to a National and a Market Economy: A Gradualist Approach

67

(16)

Joze Mencinger

Establishing Monetary Sovereignty

83

(16)

Andrej Rant

Succession Issues in Allocating the External Debt of SFR Yugoslavia and Achieving Slovenia's Financial Independence

99

(14)

Mojmir Mrak

France Arhar

Part II Socioeconomic Transformation---The Slovenian Way

113

(238)

Macroeconomic Stabilization and Sustainable Growth

115

(17)

Carlos Silva-Jauregui

Trade Policy in the Transition Process

132

(18)

Boris Majcen

Bartlomiej Kaminski

Monetary System and Monetary Policy

150

(20)

Ivan Ribnikar

Tomaz Kosak

Exchange Rate Policy and Management of Capital Flows

170

(19)

Velimir Bole

Fiscal Policy and Public Finance Reforms

189

(19)

Milan M. Cvikl

Mitja Gaspari

Building an Institutional Framework for a Full-Fledged Market Economy

208

(16)

Rasto Ovin

Bostjan Kramberger

Privatization, Restructuring, and Corporate Governance of the Enterprise Sector

224

(20)

Marko Simoneti

Matija Rojec

Aleksandra Gregoric

Enterprise Restructuring in the First Decade of Independence

244

(19)

Polona Domadenik

Janez Prasnikar

The Banking Sector

263

(13)

Franjo Stiblar

Marko Voljc

Capital Market Development

276

(16)

Dusan Mramor

Bozo Jasovic

Labor Market Developments in the 1990s

292

(23)

Milan Vodopivec

Social Sector Developments

315

(19)

Tine Stanovnik

Reentering the Markets of the Former Yugoslavia

334

(17)

Joze P. Damijan

Part III The Quest for EU Membership

351

(62)

EU Membership: Rationale, Costs, and Benefits

353

(14)

Andras Inotai

Peter Stanovnik

Slovenia's Road to Membership in the European Union

367

(14)

Janez Potocnik

Jaime Garcia Lombardero

Size Matters in the European Union: Searching for Balance between Formal and Actual Equality

381

(18)

Zlatko Sabic

Marjan Svetlicic

Dorota Pyszna-Nigge

Wolfgang Wessels

Political Economy of Slovenia's Transition

399

(14)

Janez Sustersic

About the Editors

413

(4)

Contributors

417

(4)

Index

421

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Slovenia: From Yugoslavia to the European Union

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Table of Contents

Supplemental Materials