INSTITUTE FOR STRATEGIC STUDIES AND PROGNOSES (ISSP)

Montenegro Economic Trends 25
Regular circulation of MONET
25 is published by the support
of EAR within the project Montenegro Economic Trends. Additional number of copies of the same issue was published within the project supported by the Governments of Poland and Canada, through the Polish-Canadian Development Cooperation Program, administered by the Education for Democracy Foundation.

About us

ISSP

The Institute for Strategic Studies and Prognoses (ISSP) established by Professor Veselin Vukotic, with some his young colleagues, in 1999, is the first independent economic institute in Montenegro.
The ISSP is the leading independent economic think tank in Montenegro, serving as:

An institution to set the agenda for advocating reform;
A vehicle to communicate economic change through data, analysis and publications; and
A training ground for a cadre of young economists, analysts, lawyers and other experts to understand the elements and analytical requirements for economic transformation.
The Institute focuses on key policy issues including currency, banking, fiscal and pension reform. ISSP’s research, policy papers and other analytical information provide a forum for debate and allow the government and the business community to make projections based on unbiased, well-researched data. ISSP surveys and national and regional seminars have spurred decision makers to address and define priorities. The organization is recognized as a valuable contributor to economic policy reform activities, both as a source of information and analysis and as a catalyst for advocacy.

Institute produced first document on strategic vision of development and economic reforms in Montenegro. Strategic vision is based on economic freedom, private property, openness of economy, institutions of market economy, DM and EURO as only legal tender, as well as development of Montenegro as micro state.

Also, Institute, with cooperation from international consultants in Montenegro, initiated idea of Economic Reform Agenda for period from 2002-2006. Idea was accepted by Prime Minister and Government of Montenegro.

It has a team of 23 full-time researchers and also collaborates with a wide network of experts, business people, economists and statisticians in the country and abroad. In tandem with government representatives and other decision-makers, the Institute works to advocate for a public policy environment where entrepreneurship can thrive.

Contact:

INSTITUTE FOR STRATEGIC STUDIES AND PROGNOSES
Crnogorskih Serdara, Lamela II-III,
81000 Podgorica, Montenegro
Tel +381 (0)81 621 641

Fax +381 (0)81 622 226
e-mail: issp@cg.yu

Partners / Donors

DONOR

PARTNERS

MEMBERSHIP

Projecta

Monet

MONET represents an international publication that is, in cooperation with European Agency for Reconstruction (EAR), issued by Institute for Strategic Studies and Projections, started from 2000. MONET is quarterly monitor of Montenegrin economy which offers different types of economic research and analysis. MONET will introduce you with new statistical data in different parts Montenegrin economy and offer to you regional comparisons. MONET, by that, offers real insight on Montenegrin economy and the region, as well. MONET offers continual analysis of:

Household

HOUSEHOLD SURVEY OF ROMA, ASHKAELIA AND EGYPTIANS, REFUGEES AND INTERNALLY DISPLACED PERSONS 

Important

“Survey on PC and Internet usage in Montenegro”, 2005
ISSP

Institute for Strategic Studies and Prognoses in cooperation with Secretariat for Development and ICT enterprises- Cikom, Jugodata and Digit Montenegro started with project named “Survey on PC and Internet usage in Montenegro”. This report presents an analysis of ICT market in Montenegro, targeting households, enterprises and ICT enterprises in Montenegro. It offers information about level of information society development, PC and Internet usage, business barriers, information literacy and PC education level among households and enterprises. The document also presents overview of ICT market in Montenegro. It is one of the first projects/surveys in area of ICT in Montenegro and is data basis for the future projects, as well.
“Economic costs of tobacco use in Montenegro”, 2004, 2005 (ongoing)
ISSP

This research, having as a subject the issue of health economics, would be completely innovative research for Montenegro and will have significant value for development of the Montenegrin economic analysis and research area. Smoking is one of the major factors that influence population’s health in Montenegro. On the other side there is no statistical data on number of smokers in Montenegro or costs of tobacco use and there is no antismoking strategic policy defined. Having this on mind it would be very valuable and useful to estimate the costs of tobacco use in Montenegro in order to increase awareness of population and provide a good base for policy recommendations.
“Performance Indicator Analyses”, 2004, 2005 (ongoing)
ISSP

This report presents an analysis of the current status of economic, social and democratic reform processes in Montenegro. It offers recommendations for future steps and actions that will contribute to further improvement of the overall Montenegrin society. In addition, the document also provides a basis for the round table discussions that will provide additional input for the USAID mid-term strategy. Examination of the current transitional process is done through analysis of Ron Sprout performance indicators, or in some cases by defining new indicators and their analysis. The report covers three areas: economic transition, democratic transition and social transition.
“Improvement of the Macroeconomic model for Montenegro”, 2004 (ongoing)
ISSP

Project “Improvement of the Macroeconomic model for Montenegro” is a ten month project realized in cooperation with the Economic Institute of the Law Faculty in Ljubljana, (Slovenia) for the needs of the Montenegrin Central Bank. The aim of the project is to build a macroeconomic model for Montenegro that can be used for economic projections and maintenance of economic policies.
“National strategy for resolving the problems of refugees and internally displaced persons”
ISSP

The Government of Montenegro established a Commission headed by the Minister of Labor and Social Welfare To achieve the development and implementation of the national strategy for resolving the problems of refugees and internally displaced persons. The Commission prepared the project task, i.e. expected structure and content of the future national strategy. Based on their references, the Commission appointed ISSP to work on the national strategy development.
“Trade regime changes and their impact on poverty in Montenegro”, 2004
ISSP

This research will expand the knowledge about the impact of different measures of the trade policy on poverty. It will fill the exiting gap in Montenegro between research about households from one side and research on general economic policies that are maintained. The fact that this kind of research has never been done in Montenegro is one of the reasons why it would be of the great interest. In addition the research will open a whole range of questions that will present a challenge for further research in this area.
“Human development report”, 2004
ISSP

The goal of this project is to highlight that everything that was happening over the last decade in Montenegro shows the need for affirmation of the new development concept. For countries in transition, such as Montenegro, human development, understood as a process of increasing the alternatives of choices that one has in front of him, as well as an increase of man’s capabilities for selection, is very important in its further development.
“Agriculture sector in Montenegro”, 2004
ISSP

The basis for the analysis of the agriculture sector is its current state that is illustrated with the existing level and structure of agriculture production and natural, human and technical resources. The special segment of the analysis is legal and institutional framework. Measures of protection are analyzed from the standpoint of the impact on performance of the agricultural sector taking into consideration existing measures of protection of agriculture production on competitive markets.
“EU accession effects analysis for Serbia and Montenegro”, 2004
ISSP

This project represents on field research (through interviews and data analysis) the possible effects of the EU accession on businesses. The ISSP representatives have participated in part related to effects on Montenegrin businesses.
“Transaction costs in Montenegro”, 2003
ISSP

The main goal of this project is identification of transaction costs that make business more expensive and presentation of recommendations for its elimination. These costs often are not interesting for academicals discussion and public policies, but in practice they significant obstruct market transactions and make them not to happen.
“Companies’ takeover and needs for its regulation in Montenegro”, 2003
ISSP

The main goal of the project is identification of needs for companies’ takeover and recommendation of regulatory solutions that will regulate this issue. The project analyzes institutional framework in Montenegro, in order to affirm clauses of the different regulations that are not coordinate with the concept for the capital market and securities in Montenegro development, and to indicate possible solutions that will resolve incompatibility.
“Montenegro Investment Environment Diagnostic”, 2003
ISSP

FIAS (Foreign Investment Advisory Service of the World Bank) was invited, by the Montenegrin prime Minister, in June 2003 to prepare the diagnostic of the investment climate in Montenegro. Working with its nominated counterpart, ISSP, the FIAS team spent two weeks in Montenegro in July, interviewing a broad swath of representatives from the public and private sectors. The FIAS team then prepared their draft report, which was presented at the round table prepared by ISSP team.
“Economic Reforms Agenda for Montenegro”, 2003
ISSP

Economic reform Agenda is a strategic document for a Government in which the commitments for reforms in the four years period are stated.
“Economic Policy for Montenegro for 2003 and 2004”
ISSP

The project was done twice, once in 2002 and the second time in 2003 year, for the needs of Central Bank of Montenegro. It includes analytical basis for the recommendations that Government of Montenegro obtains from Central Bank. As the main goals of this economic policies were proclaimed macroeconomic stability and net increase of number of employees that should be achieved through fiscal and monetary policies, improvement in business regulatory system and protection of private property as well as improvement in legislative system.
“Transition Report”, 2003
ISSP

The aim of Transition Report is to deal with the main events, which have taken place in the process of transition in which Montenegro has faced a lot of changes in its socio-economic environment. The publication includes all the reforms that were introduced in our society in the mentioned period and points at the need for the improvement of the business environment, openness and internationalism, deregulation of macroeconomic activities and economic policy etc.
“Household Survey of Roma, Ashkaelia and Egyptians, refugees and internally displaced persons”
ISSP

This publication is intended to complement the existing sources of household data for the regular Montenegrin population, for the above mentioned society’s groups (RAE) have not been included in the poverty assessments, which were produced so far. The aim of the study is to contribute to our better understanding of the poverty level and vulnerability of certain groups in our society and is a best practice for including marginalized groups in the process of the overall reforms and for overcoming sensitive cultural issues.
“Macroeconomic Indicators for 2002-2003”
ISSP

The project is the comprehensive presentation of macroeconomic statistics in Montenegro for 2002.
“Living Standards and poverty in Montenegro”, 2002
ISSP

This study provides an overview of the profile of the poverty and living standards in Montenegro using the most recent and best data available. By presenting an array of important results, this document serves as a platform for important discussions in Montenegro on poverty reduction strategies and efforts to monitor progress in their implementation and in the same time highlights that it is important to evaluate the potential impact of economic reforms on the poorest in Montenegro who remain vulnerable to changes in the economic environment.
“GDP calculation for Montenegro”, 2002
ISSP

The result of this project was a calculation of GDP for Montenegro for 2001. The importance of this figure is that it was not available in Montenegro and the ISSP was the first institution that calculated it based on internationally accepted methodology. The Montenegrin Government adopted the ISSP calculation as the official figure for Montenegrin GDP.
“Human Development Report”, 2002
ISSP and UNDP

This is the first UNDP report on human development that was undertaken in Montenegro. Analyses of the Montenegrin reality from the point of view of quality of human development are completely new. There are some individual partial analyses of the specific segments of human development in Montenegro. Nevertheless, this Report is the first complete picture of the situation in Montenegro.
“Handbook on the New Business Environment in Montenegro”, 2002
ISSP

The purpose of this book is to give an overview of the new legislation and some of the other changes of interest to the business community. Business owners and managers need to be aware of their right in the new business environment, so they can take advantage of the new rules and tools, and their obligations is to ensure that they are in the compliance with the new regulations.
“National Integrity system”, 2001
ISSP and Transparency International

The National Integrity System is an all-encompassing method of fighting corruption in a country. The system is based on eleven ”pillars” the legislative and executive power, the Auditor General, the judiciary, the ombudsman, public services, anti-corruption agencies, the media, civil society, the private sector and international subjects. This study represents practically oriented research into the main causes of corruption in the key sectors of society, providing specific suggestions for anti-corruption activities in Montenegro.
“Privatization in the West Balkans with special emphasis on Montenegro”, 2001
ISSP

The study was done for the needs of the World Bank. The objective of this study is to present the privatization process in Montenegro in terms of basic results, problems and experience gathered from past privatization drives in the country.
“Projections of Montenegrin demographic structure”, 2001
Petar Ivanovic and associates

The purpose of this project was to offer demographic data, since the last census in Montenegro was done in 1991. The projects offer projections of demographic data until 2021. The projects were done by analytical method while the hypotheses were defined based on migration data until 1996. The aim of this project was to present trends describing how the Montenegrin economy is aging and explain their impact on the Montenegrin economy.
“Reform of the Montenegrin statistical system”, 2001
Ph.D. Maja Bacovic

Bearing in mind the importance of the statistical system and work of statistical departments on economic development, the reform of the statistical system is needed. This project suggests the principles on which the statistical system should be based, organization of the statistical system, and steps that have to be taken in order to reform the statistical system in Montenegro.
“Reform of the Montenegrin pension system”, 2001
ISSP and PWC

The project consists of analysis of the current ”pay as you go” pension system in general and this system in Montenegro with the explanation of the difficulties that Montenegrin system is facing, and analysis of the system of private pension funds. In addition this project presents the modern trend in the pension systems with a special focus on the Chilean system and a comparison between systems in Britain and Japan.
“Montenegro Utility Regulation Strategy Reform”, 2001
ISSP

The purpose of this paper is to discuss objectives and set out the range of possible options for utility regulation in Montenegro. It is intended to form a common basis for discussing the development of a regulatory framework.
“Montenegro as micro state”, 2000, 2001
Ph.D. Veselin Vukotic

The project presents the concept of Montenegro as a micro-state from an economic point of view, and answers the question: How should the state in Montenegro be organized so it can contribute to the highest economic efficiency and prosperity? This question analyzes the practice and process of globalization and information dissemination within a context whereby the state is socially aware.
“Introduction of SNA into the statistic system of Montenegro”
Ph.D. Dusan Miljkovic, Ph.D. Danica Popovic

The importance of the introduction of the SNA system in Montenegro is analyzed in this project. The project offers, in its first part, a description of the SNA system. The second part presents and analyzes preconditions to be fulfilled before the SNA system can be implemented, as well as steps in the process of implementation. Special focuses of the project are obstacles and problems that will be faced in the process of SNA implementation, and solutions for overcoming them.
“Future of Montenegro”, 2001
ISSP

The main goal of this project is to point out that creation of new economic system, new concept of state organization and pre – qualification and investments into human capital are ”foundation stones” of Europezation of Montenegro and her long - term stability. Institutional and mental reconstruction is precondition for economic and social reconstruction of Montenegro. Montenegrin economic system longs for very liberal market economy and organization of Montenegro at principle of microstate. Concept of microstate is in accordance to key resource of Montenegro and that are services, before all tourism. Within the scope of this project was also organized conference in Brussels.
“Obstacles to Trade, Growth, Investment and Competitiveness”, 2001
ISSP

The five institutes, members of the Balkan Network, each interviewed twenty-five companies (eight domestic, eight regional and eight international companies) and summarized the results of the surveys. The results were further investigated by doing in depth case studies, two per each institute, of companies that had experienced at least one of three obstacles most frequently citied in the questionnaire. Ten first-person stories, case studies, about how entrepreneurs in the Balkans cope with obstacles to the success of their businesses were published in this publication.
"On the Criteria for economic reforms in Montenegro (international issues) ", 2001
Ph.D. Enrico Colombato

The project was conductedin cooperation with ICER (International Center for Economic research), Torino. The document is analyzing arguments for and against liberalization and free trade as the desirable trade regime in Montenegro. In addition it offers some policy recommendation in respect to liberalization and the opening of the Montenegrin economy. The paper showed that opening up the Montenegrin economy is a necessary condition for success; but it is not sufficient.
“Capital Market Development in Montenegro”, 2001 ISSP

This project explains the organization of institutional framework and infrastructure that will provide stability of financial system and risk reduction that will serve capital market development.
“Banking Sector Survey”, 2001

This was the first survey done among Montenegrin banks. The survey offered reliable data on number of banks and their employees, the banking services, the banking business results, interest rates on credits and deposits etc.
“Program of Fiscal Reform in Montenegro”, 1999
Ph.D. Dusan Vujovic

This project is targeted primarily at offering, on the basis of the existing situation, a proposal of a fiscal reform strategy. It also defines the fundamental dimension of the reform in key fields (areas) in conformity with principles and standards recognized in the world.
“War damages estimation”, 1998
ISSP

Goal of the project “War damage estimation” was to quantify economic consequences of NATO bombing on the Montenegrin economy. The results of this project were beneficial for creating some strategic development and reform processes in Montenegro and focusing of the international aid flows. However, this is a note about the hard time that we had at the end of the twentieth-century and the consequences and impact this had on Montenegro and Montenegrin population.
“Monetary reform in Montenegro and introduction of DM”, 1998
Ph.D. Miroljub Labus, Ph.D. Veselin Vukotic,

Ph.D. Mladjen Dinkic, Ph.D.Srboljub Antic

This project analyzes alternative solutions to the organization of monetary power in Montenegro. Relative costs and benefits from the perspective of the development of Montenegrin economy have been calculated for all of them. The analysis puts a special focus on the economic policy factors that will influence the introduction of DEM as the official currency, as well as practical issues (such as the issue of duties in dinars) of joining the DEM zone.
“New concept of privatization in Montenegro”, 1998
Ph.D. Veselin Vukotic

Privatization has been one of the most important issues in the transition process in Montenegro, this project considers the concept of privatization based on the analysis of the economic situation in Montenegro and experience that other countries had in the privatization process. It offers practical models and methods of privatization and its importance lays in the proposed solutions for the privatization process in Montenegro.
“Conceptual basis of economic reforms in Montenegro”, 1998
Ph.D. Veselin Vukotic

This material was created as an answer to the question “What economic system should Montenegro have”? The document discusses new system concepts and development, as opposed to more classical theory and deterministic constructions based on dubious foundations. The picture of a new economic system that should be compatible to the EU economic system, and makes possible internationalization of the economy, is also detailed in this document.

Events

Round Tables

The ISSP plays a critical role in key policy issues by providing a forum for debate based on its research, policy papers and other analytical information. These events are designed to focus the public debate on the strategic issues related to the development of a market economy. Participants include ISSP representatives and any players relevant to the issue at hand, including politicians and business owners. All round tables discussions are audit recorded and published in written form on local language.

PRIVATIZATION OF ELECTRIC POWER INDUSTRY IN MONTENEGRO

The round table was held on September 2000 in Podgorica. The goal of this event was exchange of views regarding privatization of electric power industry as well as increase of the public awareness about this kind of privatization. It was agreed that basic preconditions for the capital investments, in the first place foreign from private sources, should be created in Montenegro in order to increase the quality of electric power supply.
REGULATION OF INFRASTRUCTURE ACTIVITIES IN MONTENEGRO

The round table was held on September 2000 in Podgorica. For Montenegro decided on privatization of infrastructure activities, such as Telecom, Electric Company, Water works, Public Utility Service, ISSP in collaboration with Know-How Fund, UK organized this round table to indicate real danger of replacement of current state monopoly with private monopoly if the second is not regulated in the adequate manner. The aim of the economic regulation is to protect consumers from the obstinacy of any private owner. The main idea presented on the discussion was establishment of independent regulatory institutions which are free from the political influence.
PENSION REFORM IN MONTENEGRO

The round table was held on April 19th 2001. The aim of the round table was to point out that the pension reform is one of the greatest challenges Montenegro is faced with at the moment. It was agreed that a long-term solution of the pension system reform is implementation of the private component. Participants highlighted all the benefits Montenegro would achieve from the introduction of a private pension fund system. From the very constructive discussion emerged the conclusion that as soon as possible self-sustainable pension system should be created if Montenegro is to become a part of the developed world.
DISCUSSION ON DRAFT LAW ON ACCOUNTING AND AUDITING

The round table was held on October 2001 in Podgorica. Introduction of the international accounting standards is crucial for further development of financial system in Montenegro and their adoption and implementation could facilitate all the efforts in the process of privatization. The participants of the Round table agreed on the fact that adoption of these standards means the adoption of the standards of developed world.
THREE NEW LAWS IN THE BUSINESS REGULATION

The round table was held on November 2001. The discussion included: Enterprise Insolvency Law, Cross-Border Insolvency Law and Secured Transactions Law. The conclusion of round table was that these laws play important role in creation of new business environment in Montenegro and that their intention is increase of safe investments.
DISCUSSION ON DRAFT LAW ON ELECTRONIC TRADE AND LAW ON ELECTRONIC SIGNATURE

The round table was held on December 2001 in Podgorica in collaboration with the Ministry of trade. The aim of this round table was to initiate expert discussion on Draft Laws, especially bearing in mind dynamic of changes in the informative field, both in the world and Montenegro and for the fact that the number of the direct participants in electronic trade or users of electronic signature is increasing day by day.
WOMEN IN GRAY ECONOMY

The round table was held on February 21st 2002 in Podgorica. The goal of this event was to explore the situation for women working as employees or employers in the gray economy in order to bring the issue into the public eye. The event can be considered as a first step in understanding the situation and determining how to improve it. The round table was organized in collaboration with CEED, International Trade Union Center, and Trade Union of Montenegro.
PRIVATIZATION FUNDS ROLE IN CAPITAL MARKET DEVELOPMENT

The round table held on February 28th 2002 at Hotel Crna Gora in Podgorica. It was useful to participants not only because of the opportunity to discuss what is happening in Montenegro and to raise important questions, but also because of the presence of individuals working in the same area from ex-Yugoslav republics. They shared their experience, both positive and negative, which can give very valuable insight as Montenegrin capital market continues to develop, and especially because of the important changes which will be brought with the start of the MVP shares trading.
DISCUSSION ON DRAFT LAW ON TOURISM

The round table was held on March 11th 2002 at Hotel Crna Gora in Podgorica. For the tourism is the critical to Montenegrin development, ISSP initiated this event in order to generate fruitful dialogue between participants. From discussion emerged many constructive suggestions, proposals and remarks that will be useful in the further work on the Law on tourism.
DISCUSSION ON DRAFT LAW ON ENTERPRISES TAKEOVER

The round table was held on November 18th 2002 in Podgorica. The event caused constructive and fruitful expert discussion on the draft Law and the main conclusion emerged from this round table was the necessity of having such a Law, in order to have protected property rights and to eventually attracts foreign investors. The participants agreed on the fact that adoption of this Law represents step forward an appropriate reconstruction of Montenegrin enterprises.
DISCUSSION ON DRAFT LAW ON INVESTMENTS FUNDS

The round table was held on December 6th 2002 at the Hotel Crna Gora in Podgorica. On the round table were discussed crucial questions of the establishment and activities of investments funds. ISSP organized this event in order to discus before the Law adoption all questions this Draft Law opened up, with the special attention placed on the institutions involved in the overall process and the way of the transformation of he privatization funds regarding forms and terms etc.
HARMONIZATION OF REGULATION ON SECURITIES TRANSACTIONS IN MONTENEGRO

The Round table was held on February 14th 2003 at the Atlas-Mont Bank. The purpose of this round table was presentation of the legal and institutional framework of securities market in Montenegro. Discussion was oriented towards identification of non-harmonized regulation in Montenegro with the adopted concept of securities market development and included recommendations and proposals of possible solutions by which contradictories could be removed.
MONTENEGRO INVESTMENT ENVIRONMENT DIAGNOSTIC

The round table was organized on December 2003 at ISSP. This event was result of the report prepared jointly by FIAS (Foreign Investment Advisory Service of the World Bank) and ISSP on diagnostic of the investment climate in Montenegro. One of the participants of the round table was Prime minister of Montenegro. On the round table were presented review of investment promotion strategy, including the adequacy of the existing law, institutions and activities, assessment of the effectiveness of policy implementation through administrative processes, an examination of legislation and regulations to assess how accurately they reflect announced policy etc.
USAID PERFORMANCE INDICATORS ANALYSES

As a part of the work done under the Performance Analyses Indicators (this report presents an analysis of the current status of economic, social and democratic reform processes in Montenegro and the examination of the current transitional process and it is done through analysis of Ron Sprout performance indicators, or in some cases by defining new indicators and their analysis), ISSP organized during the February 2004 six roundtable discussions covering each area of the Performance Indicator Analysis. Three roundtables were organized in Podgorica, while the other three were held in Kolasin (north) and Ulcinj and Kotor (south). The roundtables were organized in the form of working sections, with an introductory presentation of the calculated indicators (provided by ISSP/CEDEM) and active participation of attendants.

Conferences

These session define priorities for reform, shape the economic policy debate and serve as a powerful advocacy tool for specific policy prescriptions for reform. They allow ISSP to play a key role in helping to structure the economic reform debate.
MICRO STATE CONFERENCE - JUN 2003
Conference organized: Institute for Strategic studies and prognoses from Podgorica, Chesapeake Associates and Institute for Global Economic Growth. More then 160 participants attended the conference from 50 different countries. The known speaker was, Mark Laar, Estonian prime minister.

On the conference, concept of Montenegro as macro state was presented. Montenegro microstate concept, is a political, economic and cultural reduction concept overall. It is the meter of changing concept of a system and institutions that could enable faster integration of Montenegro into the region, Europe, world organizations. The result should be the increase of a life quality of Montenegrin citizen.

The conference was organized in three sessions:

Session I: Does Free Trade and Economic Freedoms Contribute Economic Development (Competition vs. Harmonization)
Session II: What is Optimum Size & Structure of Government for Economic Development? - Tax Structure, Tax Competition, and Best Fiscal Policy Mix -
Session III: Can Micro State be Economically Sustainable? - Pro and Cons -

Light motive “And as a most important question of the conference, as we heard from some participants, is not whether the small state (in terms of geographic and population criteria and size of the government) can be economically viable, but can the small state (in territorial and population terms) be viable if it does not have a small government.”

Main conclusions of the conference:

General ideas that have been shared is that the role of government in the economy should be decreased, taxes should be reduced and flat rates introduced, trade policy should be liberalized, and that the only chance that a small economy has is to be open.

REGIONAL ENERGY CONFERENCE – DECEMBER 2002

The Institute for Strategic Studies and Prognoses (ISSP) organized one-day regional conference entitled Electricity in Montenegro and Southeastern Europe – Best Practices and Lessons Learned. The objectives of the Conference were: (i) to present the challenges and opportunities for Montenegro and countries in the region in the energy sector, (ii) to open a dialogue on the question of how to provide stabile and reliable electricity in Montenegro and in the region, and (iii) to present success stories throughout the region which can be used as a model in other countries, including Montenegro.

More than 110 experts, governmental representatives, policy advisors, advisors to the regulatory agencies from Slovenia, Croatia, Bosnia, Romania, Serbia, Kosovo, Albania, Bulgaria and Montenegro, and media representatives participated at the Conference.

Conference focused on three topics:

(i) laws and regulation;
(ii) tariffs and
(iii) corporate restructuring.

ISSP is working on improvement of the energy legislation in Montenegro, as well as on better understanding of the key problems in the energy sector during the transition process. Through this conference we aimed to actuate an on-going policy dialogue with policy makers and to create a framework for private-public partnership.

The aim of the conference was to help adoption of Energy law, stress energy problems in Montenegro, show necessity of energy sector strategy creation as necessity of privatization and restructuring in this area and creation of conditions for building of new energy sources.

Light motive: There is big need for regional cooperation. It is urgent and important for the development of the strategy of the energy sector in the region. Regarding this issue we do not have choice, if we do not want cooperation the market will compel us.

FUTURE OF MONTENEGRO - CONFERENCE IN BRUSSELS, 2001

The ISSP and CEPS organized the conference on the future of Montenegro in Brussels in February 2001 attracting considerable interest from the media and from the policy-making community. At that time the official position of the EU and US was that Montenegro should not contribute further to what they saw as a ten year long process of Balkan disintegration. Montenegrin representatives put forward the serious case for Montenegrin independence. The discussions and working papers presented on the conference are published in the book “Future of Montenegro”.

Seminars

Seminar and educational programs

ISSP has conducted several seminars and educational programs in the area of its expertise. Organized national and regional seminars on a number of crucial topics such as: Corporate Governance, Pension System (set of seminars), International Finance, New Tax System in Montenegro, Voucher Privatization, Word Trade Organization, etc.

HOUSEHOLD SURVEY PROCESS

Educational program was organized in cooperation with CESID-Roma and MONSTAT. The purpose of the program was delivering the local training for the MONSTAT (Montenegrin Statistical Office) statisticians in conducting the Household Survey. The program was structured in two parts: theoretical lessons and practical work (learn by doing). Some of the topics covered were: questionnaire design, sample elaboration and extraction, field organization, training of interviewers, data collection, data entry, data control, data corrections, design and production of output tables and calculation of indicators, data analysis, and dissemination of the results.

HOUSEHOLD SURVEY DATA INTERPRETATION: MEANING AND USAGE

This workshop was organized in order to further empower Roma organizations so they can actively participate in community development and adequately represent the interests and needs of their population. This workshop was attended by 20 representatives from six different Roma organizations from all three regions in Montenegro.