Transformations  in
Business & Economics

ALTERNATIVE INSTITUTIONS AS THE MAIN CAUSE OF THE CRISIS IN THE COUNTRIES OF SOUTH-EAST EUROPE
Veselin Draskovic, Radislav Jovovic, Milica Delibasic, Anna Sherstobitova

ABSTRACT. The crisis is a general expression of many negative manifestations and consequences, which have been burdening the social and economic reality of the countries of Southeast Europe (SEE) for three decades. The inherited problems from socialism were followed by new ones, conditioned by neoliberal reforms. The subject of this paper is to analyse the key relationships between institutions, the rule of law and alternative institutions, the character of which determines social and economic development in all countries. The aim of this paper is to point out the basic causes of the development lag of the SEE countries. The starting point is the hypothesis that the basic causes of the crisis are generated in a triangle that consists of the following elements: programmatically weak formal institutions, and interest-oriented rule of law deficit, and strong alternative institutions. It is concluded that urgent overcoming of the mentioned anti-development links is a condition for further development of the SEE countries.

KEYWORDS:  crisis, alternative institutions, rule of law, exaptation of institution, Southeast Europe.

JEL classification:  D02, O17, P37.