World Bank2013-03-212013-03-212012-01https://hdl.handle.net/10986/12821Recognizing the important progress with structural reforms so far, on October 12, 2011, the European Commission recommended the opening of formal membership negotiations for Montenegro. Further, in December 2011, Montenegro was granted the membership in the World Trade Organization (WTO), and in June 2012, the country is expected to open the first chapters in membership negotiations with the European Union (EU). These are major milestones on Montenegro's road to the European Union provides a broad external and institutional context, and the destination, for its ongoing reform efforts in a complex international economic environment. In this context, Montenegro needs to continue to strive to improve its policy environment and manage its public expenditures efficiently and improve the quality of public services for all its citizens. Building on the past analytical reports and ongoing economic policy dialogue, this report aims to provide new analysis, ideas, and policy advice to Montenegro's authorities on how to accelerate its public expenditure reforms with the view to reducing cost, improving quality, and increasing public service delivery.en-USCC BY 3.0 IGOACCESS TO BANKACCESS TO CAPITALACCOUNTINGAMORTIZATIONARREARSARREARS ACCUMULATIONASSET PRICESASSET VALUESAVAILABILITY OF BANK FINANCINGBALANCE SHEETSBALANCE-OF-PAYMENT CRISISBANK ASSETSBANK DEPOSITSBANKING SECTORBANKRUPTCYBANKRUPTCY PROCEDURESBASIS POINTSBENEFICIARIESBOND RATINGSBOOM-BUST CYCLEBUDGET DEFICITBUDGETARY DEFICITSBUDGETARY ITEMSBUSINESS CYCLECAPITAL ACCOUNTCAPITAL INFLOWSCAPITALIZATIONCASH TRANSFERSCATEGORIES OF EXPENDITURECENTRAL BANKCIVIL SERVANTSCOMMERCIAL BANKSCONTRACT ENFORCEMENTCREDIT EXPANSIONCREDIT GROWTHCREDIT MARKETSCREDIT RATINGCREDIT RATING AGENCIESCREDIT RATING AGENCYCREDIT-RATING AGENCIESCREDIT-RATING AGENCYCREDITORSCREDITWORTHINESSCURRENCYCURRENCY DEPRECIATIONDEBT CRISISDEBT POLICIESDEBT REPAYMENTDEFAULT RISKDEPOSITDIRECT INVESTMENTSDOMESTIC BANKDOMESTIC CAPITALDOMESTIC CAPITAL MARKETSDOMESTIC CREDITDOMESTIC CURRENCYDOMESTIC MARKETECONOMIC CLASSIFICATIONECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC POLICIESECONOMIC RISKSEDUCATION PERFORMANCEEDUCATION SPENDINGEDUCATION SYSTEMEFFICIENCY GAINSENFORCEMENT OF CONTRACTSENFORCEMENT PROCEDURESEUROBONDEXCESS LIQUIDITYEXPENDITUREEXPENDITURE GROWTHEXPENDITURE ITEMEXPENDITURE POLICIESEXPENDITURESEXPORTEREXTERNAL DEFICITSFEDERAL RESERVEFINANCIAL CRISISFINANCIAL MANAGEMENTFINANCIAL SUSTAINABILITYFISCAL CONSOLIDATIONFISCAL CONTROLFISCAL DEFICITFISCAL DEFICITSFISCAL DISCIPLINEFISCAL IMBALANCESFISCAL PERFORMANCEFISCAL POLICIESFISCAL POLICYFISCAL RISKSFISCAL STABILITYFISCAL SUSTAINABILITYFIXED COUPONFOREIGN DIRECT INVESTMENTFOREIGN INVESTORSFOREIGN MARKETSGLOBAL ECONOMYGLOBAL MARKETSGOVERNMENT EXPENDITURESGOVERNMENT POLICIESGOVERNMENT SUBSIDIESGROSS DOMESTIC PRODUCTGROWTH POTENTIALHEALTH EXPENDITURESHEALTH INSURANCEHEALTH INSURANCE FUNDHEALTH SPENDINGHEALTH WORKERSHUMAN RESOURCEILLIQUIDITYINCOME TAXINFLATIONINFLATION RATEINFORMATION SYSTEMINFRASTRUCTURE INVESTMENTSINSTRUMENTINSURANCEINTEREST RATEINTEREST RATESINTERNATIONAL BANKSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETINTERNATIONAL CAPITAL MARKETSINTERNATIONAL CREDITINTERNATIONAL CREDIT RATINGINTERNATIONAL FINANCEINVESTMENT CLIMATEINVESTOR CONFIDENCEISSUANCEJUDICIAL REFORMLABOR MARKETLIABILITYLIABILITY SIDELIQUIDITYLIVING STANDARDSLOAN PORTFOLIOSLOCAL CURRENCYLOCAL GOVERNMENTLONG-TERM DEBTMACROECONOMIC POLICYMACROECONOMIC STABILITYMARKET CONFIDENCEMARKET PARTICIPANTSMARKET SHAREMONETARY FUNDMONETARY POLICYNON-PERFORMING LOANNON-PERFORMING LOANSNPLOLD-AGEOPEN ECONOMIESOPEN ECONOMYPAYMENT OBLIGATIONSPAYMENT SYSTEMPENSIONPENSION REFORMPENSION SYSTEMPENSIONSPERCPERSONAL INCOMEPORTFOLIOPORTFOLIO QUALITYPOST-CRISIS PERIODPOVERTY REDUCTIONPRIVATE SECTORPRIVATE SECTOR CREDITPROGRAMSPUBLIC ADMINISTRATIONPUBLIC DEBTPUBLIC EXPENDITUREPUBLIC EXPENDITURESPUBLIC FINANCESPUBLIC INSTITUTIONSPUBLIC INVESTMENTSPUBLIC SERVICEPUBLIC SERVICE DELIVERYPUBLIC SERVICESPUBLIC SPENDINGPURCHASING POWERRECURRENT EXPENDITURERECURRENT EXPENDITURESREFERENDUMREFORM EFFORTSREFORM PROGRAMRESOURCE MANAGEMENTRETURNRISK FACTORSRULE OF LAWSCHOOL PERFORMANCESECURITIESSOCIAL ASSISTANCESOCIAL OUTCOMESSOCIAL PROGRAMSSOCIAL PROTECTIONSOCIAL WELFARESOVEREIGN BONDSOVEREIGN DEBTSOVEREIGN GUARANTEESOVEREIGN GUARANTEESSOVEREIGN RISKSTRUCTURAL REFORMSSUSTAINABLE FISCAL POLICYTAXTAX BASETAX POLICIESTAX POLICYTAX RATESTOTAL EXPENDITURETOTAL PUBLIC EXPENDITURETRADE CREDITSTRADE UNIONSTRADINGTRANSPARENCYTREASURYTREASURY BILLSTREATYVALUATIONWorld Bank10.1596/12821