ABSTRACT
This chapter explores the recent trends surrounding foreign direct investment (FDI) in the Balkans, within the wider context of increasing globalization and expansion of FDI and trade to developing and accession countries. It argues that FDI-led growth cannot be taken for granted and that its pursuit is often an illusion. The chapter includes a presentation of the global trends in FDI and trade. It shows that our world is steadily becoming more complex and economic power increasingly divided between more countries. The chapter elaborates a critical discussion of the dominant view on economic development. More specifically, it argues that openness is but an ingredient, and perhaps not the most important one, of the necessary policy mix. The chapter looks at the Central and Eastern European Countries and their transformation from plan to market.
