For a better world, we need better leaders. This is our credo at SEED. It is extremely fitting for the emerging economies of the Western Balkans. These six countries, which are in Europe but still outside the European Union, offer a vast array of amusing impressions and deep learnings.

This is why I have written a book about the six: Serbia, Montenegro, Albania, Kosovo, North Macedonia and Bosnia-Herzegovina.

For starters, consider the bridge in the picture above.

It looks practically impossible to cross. This may be exactly how you feel when you first try to understand this region. It is often said that the Balkans have produced more history than they can consume. While this may be a bit of a simplification, there is reason to be cautious when you discuss sensitive matters with your hosts.

The economy, however, more or less abides the same rules everywhere in our world – with some strong local flavours, of course.

I’ve noticed at least three reasons why leadership – as a higher quality of business management – is very much needed in this fascinating region.

First, the path to the EU.

It is indeed a long and winding road, and some say the result is a bit uncertain. Personal preferences for or against EU enlargement aside, it is clear that in this case, the road itself is part of the challenge. In simpler terms: these countries do all they can to adapt to the expectations. Managing companies in contemporary ways is one big chunk of the task ahead. So, new business leaders are needed.

Second, the issue of generation change.

In the Western Balkans, similar to other CEE countries, great leaders and company builders have emerged in the ’90s when the systems changed. These people may now be in their seventies or eighties and many think about how to pass on the baton. Some are larger-than-life figures who will prove to be tough acts to follow. But someone, somehow will have to step up. Again: new business leaders are needed.

Third: FDI.

The Western Balkans is very dependent on foreign direct investment and quite successful at attracting it. Serbia, the best performer, has a higher FDI/GDP ratio than the Czech Republic, for example. As a next step, though, the inflow of capital needs to be productive. Ex-pats may do part of the job, but in the longer term and in greater numbers, local talent will be necessary.  So once again… yes: new business leaders are needed.

Serious challenges, indeed. Especially when seen from afar, from the outside. But let’s take a step closer, something I have actually done throughout my decades in the region and by writing this book.

Take a second look at the bridge – which is actually in Sarajevo (Bosnia-Herzegovina). It’s not impossible: it’s just very unique. You can cross it with a smile.

Our Faculty Member, Tamás Bernáth has been active for a long time as a banker and a businessperson in the countries of the Western Balkans.

In 2024, he summarized his experiences in the region and the actual characteristics of the local economies in his book titled „The economies of the Western Balkans in the 21. century”.