Although at different stages of development, the countries of the Western Balkans Albania, Bosnia and Herzegovina, the former Yugoslav Republic of Macedonia, Montenegro, and Serbia face similar challenges in transforming and modernizing their agri-food sectors. Their rural sectors have lagged behind the rest of the economy in growth and poverty reduction, their agri-food sector is undercapitalized and highly fragmented, and their agro-processing capacities are limited. Agricultural trade deficits are widening, climate change is posing increasing risks to farm incomes, and low-cost imports and changing consumer preferences are further eroding competitiveness. Added to this scenario are the challenges and opportunities of adopting the EU acquis communautaire: preparing the agri-food sector, including public institutions, to meet EU standards such as those in food safety, and exploiting comparative advantages in agriculture, particularly in the light of high food prices. The new EU member states in Central and Eastern Europe faced similar issues, but there are important differences in the Western Balkans. Although governments in the region are unified in pursuing a modern agri-food sector aligned with the EU, they disagree on the most effective strategy and policy priorities to achieve this goal. Based on recent World Bank reports prepared in collaboration with the Food and Agriculture Organization and the European Commission Directorate General for Agriculture and Rural Development, this book identifies the constraints to agricultural competitiveness in the countries of the Western Balkans, examines public expenditures in agriculture, diagnoses key policy challenges, and suggests strategic goals, priorities, and policies for moving forward. It expands on previous findings to provide an overarching analysis of the challenges facing the region s agricultural policymakers and the strategies for transforming and modernizing the agri-food sector that will result in economic growth and a healthy rural sector....