Montenegro is an upper-middle-income country with enormous growth potential. Montenegro became a member of the World Bank Group in 2007. Montenegro’s economy has huge potential, but is hindered by significant structural, economic, and fiscal risks.
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Petrovic, like many of his fellow fisherman around the country, spends many hours in a small boat, casting his nets in the hope of snaring o... Show More +ne of the dozens of species of fish that are native to Lake Skadar.Unfortunately, Petrovic’s efforts have been hampered by overfishing on the lake in recent times – much of which is done illegally.“Nobody can say how many fish they can catch on average. Sometimes we don’t catch anything, trust me, because of weather and illegal fishing.”Over the last several decades, threats such as illegal fishing, illegal construction, and pressure on Lake Skadar from industry, residential use, and tourism have increased – creating an even greater need for a comprehensive strategy on natural resource management and preservation.Addressing this need, the World Bank – through a grant from the Global Environmental Facility (GEF) – began working with the governments of both Montenegro and Albania in 2008 through the Lake Skadar Integrated Ecosystem Management Project, a project designed to help these countries manage and preserve one of their greatest natural assets: Lake Skadar. Show Less -
Over the past decade, Montenegro has achieved important results: it tripled its per capita income and reduced poverty to single digits. It is an upper middle-income country, and with a per-capit... Show More +a income of $7,100, it is the richest among the six countries of the Western Balkans.The World Bank’s Country Economic Memorandum suggests areas where Montenegro needs further reforms in order to prepare the ground for future prosperity.The report, entitled “Preparing for Prosperity,” argues that Montenegro should be a fiscally strong state with low, sustainable debt, fiscal surpluses, and public investments that are well targeted. Additionally, Montenegro needs to improve financial discipline in the economy, the report says. Show Less -
Such negative trends can be reversed, the report says, through the recommended improvements to Montenegro’s overall connectivity through more diversified exports, better infrastructure, and modern ski... Show More +lls, as well as through increased flexibility in terms of implementing a flexible agenda that reduces bureaucracy and improves the investment climate, especially at the municipal level.“It is very important to reduce red tape, reduce a bureaucratic approach, and to improve the business climate. In that sense, we cooperate with the World Bank and the Doing Business team, and we improved in that scale,” says Milorad Katnic, Advisor for Economy and Finance to Montenegro’s Prime Minister.The report, backed by policy advisors, says such a reduction of bureaucracy – combined with improved labor market regulations – will benefit Montenegro in terms of growth, jobs, and standards of living in the years to come. Show Less -