Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Economic Perspectives

Národohospodárský obzor; The Journal of Masaryk University

4 Issues per year

CiteScore 2016: 0.50

SCImago Journal Rank (SJR) 2016: 0.262
Source Normalized Impact per Paper (SNIP) 2016: 0.516

Open Access
See all formats and pricing
More options …
Volume 16, Issue 3


Economic Transformation in Slovenia: From a Model Example to the Default Edge

Libor Žídek
  • Masaryk University, Faculty of Economics and Administration, Department of Economics, Lipová 41a, Brno 602 00, Czechia
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
Published Online: 2016-10-13 | DOI: https://doi.org/10.1515/revecp-2016-0011


The Slovenian economy appeared on the brink of bankruptcy at the end of 2013. The situation was caused by high level of classified debts in state-owned banks. This can be seen as surprising because Slovenia used to be (for a long time) considered as a (textbook) example of the gradualist transformation approach. The goal of this article is first to describe the transformation process in the country and consequently to determine causes of the economic problems that resulted in the 2013 crisis. The article concludes that the economic problems were rooted already in the specific functioning of the centrally planned system in Yugoslavia. These specifics had a direct influence on the transformation process in the country and stood behind the application of gradualism. Among the most telling features of gradualism were slow privatization, cold attitude towards foreign investment and the foremost lasting casual economic environment caused by behaviour of the state-owned banks. My conclusion is that the country’s economic problems can be ascribed to gradualism and that they are a clear example of the path dependence development.

Keywords: Slovenia; economic transformation; banking system; gradualism


  • BARLETT, W. (1996). From Reform to Crisis: Economic Impacts of Secession in Problems of Economic and Politoval Transformation in the Balkans ed. Jeffries. I., Pinter, London and New York, ISBN 1-85567-319-3.Google Scholar

  • BANK OF SLOVENIA (1999). Annual Report, Year 1998, Ljublana, ISSN 1318-072X Google Scholar

  • BANK OF SLOVENIA (2007) Financial Stability Review 2007, Ljublana, ISSN 1581-9760Google Scholar

  • BEREND, I. T. (2009). From the Soviet Bloc to the European Union, Cambridge University Press, ISBN: 978-0-521-49365-9.Google Scholar

  • BOLE, V. (2004). Exchange Rate Policy and Management of Capital Flows. V M. Mrak, M. Rojec, & C. Silva-Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (stránky 170-188). Washington: The World Bank.Google Scholar

  • BUCHEN, C. (2007). Estonia and Slovenia as Atipodes in Varieties of Capitalism in Post-Communist Countries (ed. by Lane D, Myant M.), Palgrave, ISBN 1-4039-9641-5.Google Scholar

  • CVIKL, M. M., & GASPARI, M. (2004). Fiscal Policy and Public Finance Reforms. V M. Mrak, M. Rojec, & C. Silva-Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (stránky 189-207). Washington: The World Bank.Google Scholar

  • CVIKL, M., KRAFT, E., VODOPIC M. (1993). Costs and Benefits of Independence: Slovenia in Communist Economies and Economic Transformation, The World Bank, 1993, WPS 1126.Google Scholar

  • DAMIJAN, J. P., KNELL, M. S., MAJCEN, B., ROJEC, M. (2003) Technology Transfer Through FDI in Top-10 Transition Countries: How Important are Direct Effects, Horizontal and Vertical Spillovers?. William Davidson Institute Working Paper No. 549.Google Scholar

  • DYKER, D. A. (2000). Slovenia: The Economy. In Central and South-Eastern Europe (pp. 612-619). London: Europa Publications Limited.Google Scholar

  • Economist Intelligence Unit (EIU). (2003, 2004, 2009). Country Profile 2003, 2004, 2009: Slovenia. London.Google Scholar

  • ESTRIN, S. (1991). Yugoslavia: The Case of Self-Managing Market Socialism. Journal of Economic Perspectives. Volume 5. Number 4 - Fall 1991. Pages 187-194. DOI: 10.1257/jep.5.4.187Google Scholar

  • European Bank for Reconstruction and Development (EBRD). (1998-2012). Transition report 1998-2012, London, ISBN 978-1898802150.Google Scholar

  • European Bank for Reconstruction and Development (EBRD). Forecasts, macro data, transition indicators, http://www.ebrd.com/what-we-do/economic-research-anddata/data/forecasts-macro-data-transition-indicators.html 20.8.2015.Google Scholar

  • European Bank for Reconstruction and Development (EBRD): Selected economic indicators data, URL: Retrieved November 26, 2007 from http://www.ebrd.org/country/sector/econo/stats/index.htm.Google Scholar

  • EUROSTAT - epp.eurostat.ec.europa.eu/ 18. 6. 2014.Google Scholar

  • FERFILA, B., PHILLIPS, P. (2010). Slovenia´s Transition, Lexington Books, Lanham, ISBN: 978-0-7391-3630-0.Google Scholar

  • GLIGOROV, V. (2004). Socialism and the Disintegration of SFR Yugoslavia. V M. Mrak, M. Rojec, & C. Silva-Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (stránky 15-32). Washington: The World Bank.Google Scholar

  • HARE, P. (2001). Institutional change and economic performance in the transition economies. Economic Survey of Europe; Issue 2, p77.Google Scholar

  • HAVEL, J. (2004) Privatizace bank (kritický pohled na tuzemskou privatizační praxi), Politická ekonomie, no. 1Google Scholar

  • International Monetary Fund (IMF). (2011). Republic of Slovenia: 2011 Article IV Consultation-Staff Report, http://www.imf.org/external/pubs/cat/longres.aspx?sk=24885.0, (28. 7. 2014).Google Scholar

  • International Monetary Fund (IMF). (2014). Republic of Slovenia 2013 Article IV consultation, IMF country report no. 14/11.Google Scholar

  • International Monetary Fund (IMF). (2015): Republic Slovenia: 2014 ARTICLE IV CONSULTATION, IMF Country Report No. 15/41, February 2015Google Scholar

  • International Monetary Fund (IMF). Financial Soundness Indicators (FSI). http://fsi.imf.org/. 6. 8. 2014.Google Scholar

  • International Monetary Fund (IMF). World Economy Outlook Database http://www.imf.org/external/pubs/ft/weo/2015/01/weodata/index.aspx (18. 8. 2015).Google Scholar

  • JEFFRIES, I. (1993). Socialist Economies and the Transformation to the Market, Routledge, London and New York, 1993, ISBN: 0-415-07579-3.Google Scholar

  • KENDE, P. (1993). Rovnostářské a etatistické dědictví ve střední a východní Evropě in Politická a ekonomická transformace v zemích střední a východní Evropy, Cahiers du CEFRES, June, number 3.Google Scholar

  • KOŽUŠNÍK, Č. (1997). “Zamyšlení nad ekonomickou transformací.” (in Czech), Politická ekonomie, no. 1, pp. 59. DOI: 10.18267/j.polek.267 Google Scholar

  • KRAFT, E., VODOPIC M. (1992). How Soft is the Budget Constraint for Yugoslav Firms?, The World Bank, 1992, WPS 937.Google Scholar

  • KRKOŠKA, L. (1999). “Transformace ve střední a východní Evropě: 1989-1999.” (in Czech), Finance a úvěr, volume 49, no. 12, pp. 702-714.Google Scholar

  • MADDISON, A. (2010, October 11). Historical Statistics. Retrieved October 11, 2010, from http://www.ggdc.net/MADDISON/oriindex.htm.Google Scholar

  • MAJCEN, B., & KAMINSKI, B. (2004). Trade Policy in the Transition Process. V M. Mrak, M. Rojec, & C. Silva-Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (stránky 132-149). Washington: The World Bank.Google Scholar

  • MENCINGER, J. (1997). From Shortage to Abundance of Fo+reign Exchange; the Cost of Strong Tolar, in Macroeconomic Issues of Recovery in Transition Economies (ed. Pál Gáspár), Akadémiai Kiadó, Budapešť, ISBN: 963-05-7435-7, p. 29 - 40.Google Scholar

  • MENCINGER, J. (2004). Transition to a National and a Market Economy: A Gradualist Approach. In M. Mrak, M. Rojec, & C. Silva-Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (stránky 67-82). Washington: The World Bank.Google Scholar

  • MIKULA, Š., ŽÍDEK, L. (2013). Impact of transition strategies on macroeconomic outcomes. In Zuzana Machovcová; Natalie Uhrová. Proceedings of the 11th Internatinal Conference Economic Policy in the European Union Member Countries: Selected Papers. Ostrava: VŠB - Technical University Ostrava, pp. 249-259, ISBN 978-80-248-3095-7.Google Scholar

  • MILLS K. "GDP in Yugoslavia: 1980-1989," Making the History of 1989, Item #671, http://chnm.gmu.edu/1989/items/show/671 (accessed January 08 2013).Google Scholar

  • OECD (2013), OECD Economic Surveys: Slovenia 2013, OECD Publishing, 2013, ISSN: 978-92-64-18289-9.Google Scholar

  • OECD (2014), OECD Economic Surveys: Poland 2014, OECD Publishing.Google Scholar

  • OECD Statistics http://stats.oecd.org, 10. 5. 2014.Google Scholar

  • Ovin, R., & Kramberger, B. (2004). Building an Institutional Framework for a Full- Fledged Market Economy. V M. Mrak, M. Rojec, & C. Silva-Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (pp. 208-223). Washington: The World Bank.Google Scholar

  • PLESKOVIC, B., SACHS, J. D. (1994). Politoval Independente and Economic Reform in Slovenia, in The Transition in Eastern Europe (ed. by BLACHARD, O.J., FROOT, K.A., SACHS, J.D.), Volume 1, University of Chicago Press, ISBN: 0-226-05660-0, p. 19 - 50.Google Scholar

  • RIBNIKAR, I., KOŠAK, T. (2004). Monetary System and Monetary Policy. V M. Mrak, M. Rojec, & C. Silva-Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (stránky 150-169). Washington: The World Bank.Google Scholar

  • ROUSEK, L., STEINHAUSER, G. (2013). Slovenia to Inject $4.15 Billion Into Three State-Owned Banks, The Wall Street Journal, (12. 12. 2013). Google Scholar

  • SHORTALL, F. (2014). Slovenia: Birth of an Adriatic Tiger, 1996, http://www.economics.tcd.ie/ser/1996/slovenia.htm. (14. 3. 2014).Google Scholar

  • SILVA-JÁUREGUI, C. (2004). Macroeconomic Stabilization and Sustainable Growth. V M. Mrak, M. Rojec, & C. Silva-Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (stránky 115-131). Washington: The World Bank.Google Scholar

  • SIMONETI, M., ROJEC, M., GREGORIČ, A. (2004). Privatization, Restructuring, and Corporate Governance of the Enterprise Sector. V M. Mrak, M. Rojec, & C. Silva- Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (stránky 224-243). Washington: The World Bank.Google Scholar

  • SIMONSON, D. G. (2000) Large bank privatization and economic transformation in the Czech republic in the nineties. Prague Economic Papers, no. 3.Google Scholar

  • SOÓS, K., A. (2011). Politics and Policies in Post-Communist Transition, CEU Press, Budapest-New York, 2011, ISBN: 978-963-9776-85-2.Google Scholar

  • SPRUK, R. (2012). The Failure of Economic Nationalism in Slovenia´s Transition, LAP Lambert Academi Publishing, ISBN: 978-3-8484-8345-7.Google Scholar

  • Statistical Office of the Republic of Slovenia, http://www.stat.si/eng/indikatorji.asp?ID=28, (21. 6. 2014).Google Scholar

  • STIGLITZ, J. E. (2007). Making globalization work. London: Penguin Books, xxv, 358 p. ISBN 978-0-14-102496-7.Google Scholar

  • ŠUŠTERŠIČ, J. (2004). Political economy of Slovenia´s Transition. V M. Mrak, M. Rojec, & C. Silva-Jauregui (Editor), Slovenia: From Yugoslavia to the European Union (stránky 399-412). Washington: The World Bank.Google Scholar

  • UNCTAD (2015). World Investment Report 2015 Database http://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx (17.8.2016) Google Scholar

  • UNCTAD STAT: http://unctadstat.unctad.org/ (28.8.2015).Google Scholar

  • WORLD BANK: World Development Indicators, data.worldbank.org, 20. 8. 2015.Google Scholar

  • ŽÍDEK, L. (2006) Transformace české ekonomiky, 1989-2004. 1st.ed. Prague: C. H. Beck, 2006. 304 p.Google Scholar

  • ŽÍDEK, L. (2011). Transformation in Poland. Review of Economic Perspectives, volume 11, number 4, pp. 236-270. DOI: 10.2478/v10135-011-0015-x CrossrefGoogle Scholar

About the article

Received: 2016-02-09

Accepted: 2016-08-11

Published Online: 2016-10-13

Published in Print: 2016-09-01

Citation Information: Review of Economic Perspectives, Volume 16, Issue 3, Pages 159–186, ISSN (Online) 1804-1663, DOI: https://doi.org/10.1515/revecp-2016-0011.

Export Citation

© by Libor Žídek. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. BY-NC-ND 4.0

Comments (0)

Please log in or register to comment.
Log in