This book explores the key economic issues facing Southeastern Europe and Bosnia and Herzegovina, within the context of the serious challenges that the global economy has faced in recent years. It combines rigorous analysis of the issues faced by the region with a constructive approach to identifying solutions for a positive future trajectory. The book starts by exploring the economic challenges facing the world economy both before and during the global economic crisis. The second part of the volume focuses on south-eastern Europe, and especially on the Western Balkans, assessing the best ways of achieving a positive economic future for small open economies in the region. The final part of the volume examines the economic challenges in Bosnia and Herzegovina. One of Cauševic ‘s main findings is his proposal for the creation of a European Union Guarantee Fund for the Western Balkans, which would guarantee long-maturity bond issues by the countries of the region, denominated in national currencies. These bond issues would be called Euro-Balkan bonds and they could be classified as financial assets with a lower degree of risk. The revenues realised would be used exclusively to finance capital projects preferably at the cross-border level. Thus, one of the key problems facing small open economies which are not yet members of larger associations and therefore lack the backing of a supranational institution, could be solved and systemic risk reduced, stimulating economic growth and employment. Cauševic had also foreseen the need for a return to Keynes’s thought before the crisis broke out. In his conclusion on the need for reform of the international financial system (in 2006) he stated that private institutions/entities would not be able to replace the international and national authorities in providing key financial resources for sustainable development.

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