ECONOMIC AND SUSTAINABLE DEVELOPMENT IN THE WESTERN BALKANS: CASE STUDY OF NORTH MACEDONIA AND ALBANIA

Abstract

This study explores the dynamics of economic growth and sustainable development in North Macedonia and Albania between 2017 and 2025, focusing on the interplay between policy frameworks, environmental protection, and regional integration. It examines initiatives aimed at advancing renewable energy, modernizing urban infrastructure, promoting social inclusion, and aligning institutional and regulatory systems with European Union (EU) standards. Key case studies include large-scale renewable energy investments, efforts to mitigate threats to shared ecosystems such as Lake Ohrid, and the electrification of public transport systems in urban centers. The paper also analyzes challenges that hinder sustainable development, including institutional capacity limitations, fragmented governance structures, climate risks, and ongoing environmental degradation. Drawing on government reports, peer-reviewed literature, and media sources, the study provides evidence-based policy recommendations to enhance cross-border cooperation, improve regulatory enforcement, and incentivize sustainable investment. The findings indicate that while both countries have made substantial progress in transitioning toward greener economies, achieving long-term sustainability requires sustained governance reforms, stronger regional collaboration, and targeted support for vulnerable populations. The study contributes to the understanding of sustainable development in the Western Balkans and provides actionable insights for policymakers, projects, and international organizations engaged in regional development initiatives.