Western Balkan Berlin Process 2023

Deputy Secretary-General (DSG) of the OECD, Fabrizia Lapecorella, participated in the Western Balkan Berlin Process 2023 Leaders' Summit held in Tirana on October 16th. The Summit assessed the progress of regional cooperation in the Western Balkans, with a focus on the Common Regional Market and advancing economic convergence between the Western Balkans and the European Union (EU). The need to support the green and digital transition within the region was also a key point of discussion.

During the Summit, DSG Lapecorella reaffirmed the OECD's commitment to supporting the economic convergence of the Western Balkans. To underscore this commitment, DSG Lapecorella introduced the Economic Convergence Scoreboard for the Western Balkans 2023, prepared as a background document to facilitate discussions at the Summit.

The Scoreboard provides a comprehensive overview of the Western Balkans' economic convergence in five key clusters: business environment, skills, connectivity & infrastructure, greening, and digitalization. This tool is designed to assist policymakers in identifying specific areas where they can channel their efforts to boost sustainable economic growth.

The Scoreboard ought to be used together with the OECD's policy assessments, including the Western Balkans Competitiveness Outlook and SME Policy Index for the Western Balkans and Türkiye. These assessments offer valuable guidance for addressing the challenges highlighted in the Scoreboard. Over more than a decade, they have played a pivotal role in shaping the region’s policies aimed at strengthening growth and economic convergence.

The participants stressed the continued importance of the Berlin Process to harness the full potential of improved and inclusive regional cooperation and agreed that the Berlin Process Summit 2024 would be held in Germany.

In the run-up to the Leaders' Meeting, Deputy Secretary-General (DSG) of the OECD, Ulrik Vestergaard Knudsen participated at the Economy Ministerial meeting, held in Tirana on September 26th. The meeting took stock of the progress made on the Common Regional Market, and discussed strategies to advance the regional integration, thereby accelerating the economic convergence of the Western Balkans with the EU.

DSG Knudsen reiterated the OECD’s dedication to supporting the Western Balkans in their pursuit of convergence with the EU and their integration into the EU. He highlighted that the OECD has continuously been monitoring the Western Balkans’ alignment with EU and OECD policies and standards, and providing evidence-based policy recommendations through its unique tools, such as the Western Balkans Competitiveness Outlook.

The Western Balkans Competitiveness Outlook represents the most comprehensive assessment of the region’s economic convergence with EU and OECD policy standards. Since 2016, it has drawn upon the OECD’s multi-disciplinary expertise to monitor and assess the six Western Balkans’ economic reforms horizontally across 15 policy areas. The fourth edition of the assessment is scheduled to be released in early summer 2024.

The OECD’s support to the Western Balkans’ convergence through policy analysis and advice has also been acknowledged in the Chair’s Conclusions.

On the same day of the Economy Ministerial, DSG Knudsen also participated in the Western Balkan Berlin Process Business Forum. Bringing together the business community from across the region, the Forum discussed the main achievements and challenges along the path towards the EU Single market.

DSG Knudsen expressed the OECD's commitment to collaborating with the Western Balkans in shaping supportive policies for the private sector, and thereby unlocking its full growth potential. He underlined the crucial role of the business sector in building resilience and called for enhanced regional cooperation and market integration to reduce costs, improve skills, attract investments, and create new trade opportunities.

Referencing OECD’s SME Policy Index for the Western Balkans and Türkiye, he underscored the ongoing challenges affecting the regional business environment and advocated for tailored policies to promote innovation and technology adoption among Western Balkan businesses.