Montenegro is in the process of reforms in all areas.  It has been economically weakened during the last ten years.  In the conditions of decreased industrial production, high unemployment, outdated technologies and long insufficiently maintained infrastructure, Montenegro needs, in addition to loan rescheduling and write-off, donations and favorable loans, to put the natural and human resources into the function of the development.

The program of overall external assistance is coordinated by the Ministry of Finance of the Republic of Montenegro. We shall point out here the two major donors and current projects for which funds have been approved in 2002. 

USAID – United States Agency for International Development 

1. Economic Restructuring – 17.6 mil. $

·        economic policy reform

·        private sector development

·       support to reforms in the areas of law, budget and taxes, bank supervision, payment system and privatization) 

2. Local Government and Democracy –19.4 mil. $

·        Development of NGO sector

·        Training leaders in private and public sector

·        Judicial reform

·        Strengthening of political parties

·        Media reform

·        Development of local community 

3. Special initiatives – 15 mil. $

·        Budgetary assistance – pensions payment, electricity import

European Union – European Agency for Reconstruction 

1. Public administration reform – 2 mil. EUR

·        Harmonizing public administration legal framework with EU regulations

·        Revision, drafting and amending the main legal framework

·        Preparation of strategy for implementation of harmonized regulations

·        Staff training

2. Energy – 2.6 mil. EUR

·       preparation for investments of international financial organizations in the electric power system

·        Emergency repairs and consumer services improvement 

3. Transport and infrastructure – 2.2 mil. EUR

·        Preparation of detailed feasibility study for road network improvement projects

·        Technical assistance to the Railways Company for strengthening capacities and preparation for investments by international financial institutions 

4. Water and environment – 1.7 mil. EUR

·       Preparation of the feasibility study for resolving communal problems in the coastal zone

·        Environment improvement in the Skadar Lake zone

·       Construction of the communal system and water treatment facilities in Virpazar 

5. Economic development – companies and rural economy – 3 mil. EUR

·       Advisory services for restructuring and preparation for privatization of six companies and “turnaround” management for ten companies.