CGD in the News

Is Montenegro's highway a debt trap or road to success? (Xinhua)

October 23, 2018

By Lu Hui 

From the article: 

When news broke that construction of Montenegro's first highway would begin near his house, Vukasin Petrovic, a villager in Jelin Dub, about 14 km north of the capital Podgorica, was so excited that he joked he would jump off a planned bridge.

The dream of safe and fast travels was too distant to realize in this small and under-developed corner of the Balkans, until impressive piers, some as high as 160 meters, emerged on the horizon.

The highway is part of the project that cut through the country's undulating mountains. 

... 

A widely-cited policy paper, by the Washington-based Center for Global Development, said "Montenegro's debt problem is enormous," quoting a study -- released in February 2017 -- by the World Bank that estimates the country's public debt "as a share of GDP (gross domestic product) will climb to 83 percent in 2018 in the absence of fiscal adjustment." 

Read the full article here.