THE EFFECTS OF INTERNATIONAL FINANCIAL POTENTIAL ON THE ECONOMIC ACTIVITY OF SERBIA
THE EFFECTS OF INTERNATIONAL FINANCIAL POTENTIAL ON THE ECONOMIC ACTIVITY OF SERBIA

Summary/Abstract: International financial potential through funds from international creditors and foreign direct investments in Serbia have played an important role since the economic opening to the world after the democratic changes in 2000. A lot of hope was placed in the funds of international financial organizations and FDI as an instrument of economic policy, as a mechanism that can accelerate economic growth and development in an environment with low domestic savings, lead to the replacement of outdated technology and absorb a large number of unemployed people who were losing jobs during the transition, i.e. privatization of inefficient state enterprises. Since 2006, various political structures and Governments have started with a special subsidy program for investments, although it is a program whose effects the majority of the domestic professional public has a negative opinion of. This program is still being carried out with undiminished energy, and politicians are regular guests at ceremonies for the opening of new industrial plants. Serbia and foreign capital have undoubtedly had positive effects on the entire economy of Serbia, including not only the revitalization of already existing former state-owned enterprises through brownfield (such as Fiat Automobili Srbija in Kragujevac) but also the construction of completely new greenfield investments (such as Continental Automotive in Novi Sad). , it seems that they did not fulfill all the hopes and expectations that were placed in them. despite a fairly high inflow of international capital, where Serbia is the regional champion measured by foreign direct investment in relation to GDP, the economic growth rate of Serbia is still quite insufficient.

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