Serbia and Montenegro : An Agenda for Economic Growth and Employment
Upon resumption of its transition to a market economy in late-2000, Serbia made good initial progress across a range of areas. This progress began from a very difficult starting point which reflected the legacy of a decade of isolation, conflict, a...
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| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/12/5521902/serbia-montenegro-serbia-agenda-economic-growth-employment http://hdl.handle.net/10986/14487 |
| Summary: | Upon resumption of its transition to a
market economy in late-2000, Serbia made good initial
progress across a range of areas. This progress began from a
very difficult starting point which reflected the legacy of
a decade of isolation, conflict, and poor economic
management. However, deep structural weaknesses remain.
Growth rates of around 4 percent per year will not suffice
to produce a rapid convergence of living standards towards
historical levels. Moreover, the positive elements of
Serbia's recent performance are not sustainable without
further adjustment and sustained reform. This report
analyzes Serbia's recent performance and near-term
reform priorities, in five areas which are particularly
important for growth and employment creation. Eight themes
emerge as the key reform priorities for enhancing growth and
employment generation in Serbia: enhanced political
stability and improved governance are key prerequisites for
sustained growth; reduction of the public sector, thus
reducing spending and fiscal burdens; promotion of export
development, addressing the anti-export bias, through
adequate institutional framework, tariff reform, and a
strong trade policy; completion of enterprises and banks
privatization; enhanced financial discipline and
competitiveness; enabling an improved business environment;
foster an enhanced, flexible formal labor market; enhance
quality of, and access to education and training. The report
demonstrates in great detail the outlined package of
substantial and permanent fiscal adjustment, and sustained
progress in structural reform, in order to generate the
higher investment rates and a more competitive economy which
can prod sustainable growth, and improved living standards
over the medium-term. Such policies need to be implemented
with urgency and unwavering commitment. |
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