Public administration and institutions in Serbia – key factors of investments and development

Abstract

Among the big problems that Serbia faces, like other countries around it, are unemployment and poor economic results. The Serbian authorities encourage direct investments (especially foreign ones), in order to promote economic and social development and, also, because they consider that they contribute both to job creation and to the increase in purchasing power and economic progress in general. The above is testified to by numerous facilities and subsidies that the Serbian Government grants to potential investors. Furthermore, the Republic of Serbia has well-developed potentials, as well as social and natural resources. However, the overall results of development policy are minimal, so Serbia has been facing high unemployment, insufficient investment and lagging economic growth for years. All this leads to raising the question about the causes of these weak economic results and the scarce investments, in contrast to the stimulating policy. The problem lies mainly, despite all the facilities offered by the State, in an inefficient administration and a disproportionate public sector, to which is added legal uncertainty. The objective of this article is to indicate the possible and desirable paths of reforms in the Republic of Serbia, which should be implemented to promote, among other things, more intense economic development.