Corruption and Bad Governance vs. Reliable Energy in the Economies in Transition

Abstract

The late eighties and the early nineties of the past century marked the breaking apart of certain states established during the post war years of the 20th century. The disintegration of these entities set-off severe ramifications in the affected states and their overall economy. Additionally, countries resulting from the disintegration of the former Yugoslavia were drawn into war conflicts, primarily affecting the basis of these emerging economies in transition, i.e. their energy sector, causing serious break-down in its stability and reliability. This paper focuses not only on the challenges and implications of decades-lasting corruption and bad governance in the economies in transition originating from the breaking apart of the former Yugoslavia – in particular the effects caused on the energy sector –, but as well on the opportunities offered to these countries should they decide to tackle this challenging status-quo and fulfil the EU accession requirements. Analysed are political and legal constellations, relevant stakeholders and measures affecting stability and reliability in operating the existing energy facilities and plants, but as well similar challenges affecting, even preventing new investments in the energy infrastructure. The proposed reliability indicators are applied to measure these constellations relevant for the Macedonian case.