The Case of Corruption and Speculation in Tourism Induced Development in Montenegro

The paper deals with high-end corruption and rent-seeking in tourism induced activities in Montenegro. On one hand, I argue that tourism dependency and need for investments push political elites to ensure preferential treatment to investors. On the other hand business elites are attracted by the high rents in use of natural resources in tourism sector. Preliminary argument is that orientation towards grabbing practices depends on the control mechanisms imposed by legislative framework, engagement of civil society, as well as unofficial institutional framework among national level elites. Methodologically the paper relies on qualitative analysis of a number of primary sources such as governmental statements, policy programmes and strategies, spatial plans and legislation acts, but also secondary sources such as academic articles, studies on corruption and reports on business and transition in Montenegro.