President Jakov Milatović attended the opening of the MICEB conference in Budva, organized by the Faculty of Economics of the University of Montenegro. The central theme of the event was “Shaping Sustainable Economies: A Path Toward EU Membership.” In his address, Milatović emphasized that sustainable economic development is no longer a matter of choice but a necessity, especially in the face of rising global challenges, growing inequality, and fragile institutions.
He pointed out that the world is experiencing increasing unpredictability, with geopolitical tensions, supply chain disruptions, energy crises, and trade fragmentation creating a new global reality. He noted that the European Union, which Montenegro aspires to join, is redefining its development priorities through the Green Deal, digital transformation, and strategic autonomy. According to Milatović, these are not just policy phrases but essential frameworks for building inclusive, resilient, and fair economic systems.
Milatović stated that Montenegro is facing a dual challenge: economic and democratic transformation. He welcomed the participation of renowned economist and 2024 Nobel laureate James Robinson, who, along with professors Daron Acemoglu and Simon Johnson, contributed significantly to understanding how institutions influence a country’s economic development and prosperity.
In his speech, the president focused on three key messages. First, he spoke about the value of strong institutions, stressing that they are not simply administrative systems, but the rules that define fairness and equality in society. He argued that strong institutions create wealth, not the other way around. He pointed out that Montenegro cannot rely on natural resources for long-term growth and instead must focus on building institutional credibility—such as independent courts, a lawful administration, and fair market conditions.
Secondly, Milatović warned that economic development without institutional reform is only a temporary illusion. He reflected on the country’s past three decades, marked by non-transparent privatizations, dependence on tourism and foreign investment, brain drain, and systemic inequality. He said that flawed institutions discourage competition, promote favoritism, and drive young, talented people to leave the country. He emphasized the need for deep reforms in the judiciary, public administration, and regulatory bodies, making them resistant to political influence.
Finally, he said that the critical moment for change is now. He referenced Professor Robinson’s concept of “critical junctures,” moments when societies choose a new direction. Milatović stated that Montenegro stands at such a crossroads, between extractive and inclusive institutions. The future, he said, depends on building an independent judiciary, an efficient and transparent public administration, and an economy that provides opportunities for all. He stressed that institutional reform must be done for the benefit of citizens, not just to fulfill EU requirements.
Milatović concluded by thanking the Faculty of Economics for organizing the event, congratulating them on their 65th anniversary, and acknowledging their contributions in promoting the importance of institutional economics in the context of sustainable development.
