NAŠA EKONOMSKA REALNOST
OUR ECONOMIC REALITY

Summary/Abstract: National economy’s transformation has been occurring from late eighties (‘80-s) of the last century, and consisted in a series of not viable and, consequently, mostly negative phases. Its main feature is a turbulent, continuous decline in industrial production, which, slowly but surely, contributed to the instability of the economy’s system which led to increase of public debt, imports dependence, foreign trade deficit, decrease of employment base, plummeting living standard and resulting in country’s considerable development lag. Privatization expected positive effects have been fairly imperceptible and if it wasn't for rare exceptions, the whole process would have lost its economic and development meaning. Capital base from privatization was in majority spent on final consumption, which led to scarce working capital for further development. Inherited infrastructure which additionally was among worst within the former state union, influenced strong lack of infrastructural investment, which continues to limit development execution especially if tourism is preferred national economy’s strategic development segment. Privatization and further restructuring of the economy were scarce in producing positive effects, mainly due to inner subjective reasons. Undertaking economic and systemic economic policy reforms should contribute to the available resources full and sustainable usage, in order to achieve economic revival.

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