For five months in 2013–2014, Dušan Pavlović took time off from teaching to accept a senior position in Serbia’s Ministry of Economy. This short period was long enough for him to make a penetrating diagnosis of the economic activity of the postcommunist government. He found that a coterie of tycoons and politicians live off the wealth of the majority of citizens and smaller entrepreneurs, while the economy performs below its capacities. In academic terms, extractive economic institutions create allocative inefficiency. Vivid, suggestive, and even entertaining accounts depict how privatization is administered and foreign investment projects are handled, and how party members, relatives, and friends are hired into public administration and state-owned companies. They show how the managers of firms that queue for state subsidies resist the systematic screening of their businesses. The principles of Keynesian economics are distorted and misused to conceal deliberate fiscal mismanagement. Huge ill-conceived development projects siphon taxpayers’ money from “non-economic” activities like social services, health, education, science, and culture. What Pavlović found in Serbia is acutely symptomatic of many other European post-communist regimes of our time, lending his book singular importance.

This book explores the stagnation of democracy in the Western Balkans over the last decade. The author maps regional features of rising authoritarianism that mirror larger global trends and, in doing so, outlines the core mechanisms of authoritarian rule in the Balkans, with a particular focus on Serbia, Montenegro and Macedonia. These mechanisms include the creation of constant crises, the use of external powers to balance outside influences, as well as state capture. The authoritarian patterns exist alongside formal democratic institutions, resulting in competitive authoritarian regimes that use social polarization to retain power. As the countries of the Western Balkans aspire, at least formally, to join the European Union, authoritarianism is often informal.

The European Union in the Twenty-First Century: Major Political, Economic and Security Policy Trends unpacks some of the most prominent issues faced by the EU over the last two decades and considers how they may shape its future, as well as the future of international politics.

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