Утицај Закона о улагањима на прилив страних директних инвестиција у Cрбију
Impact of Law on Investments on Inflow of Foreign Direct Investment in Serbia

Summary/Abstract: On 4th November 2015, the Law on Investments came into force in Serbia. We believe that this law, with some shortcomings, yields a satisfactory framework to investment promotion and the development of local companies in certain areas. Although this law is principally engaged in investment, its impact on FDI inflows as a normative act is limited and as such will not lead to a significant increase in FDI inflow to Serbia. The only way to attract FDI and to develop economy is to have transparent and stable economic and law environment, the rule of law and to be fighting corruption and bureaucratic obstacles. These are tasks that were the most difficult to reach, that require a very painful cuts to the corruption inherited consciousness, and the results cannot be quickly visible - and therefore among the ruling parties such procedures have never been popular. We need to present a critique concerning the expediency of passing the Law on Investment. The new Law on investment represents progress in relation to the Law on Foreign Investment. However, we believe that at least two-thirds of the new law is identical or substantially similar to its predecessor. All significant changes could be accomplished by amendments to the previous law on foreign investment. Therefore the reasons for the adoption of the new law, we must seek outside of legal and technical reasons, and even beyond the needs of the practice. Also, a weakness that previous lаw had – repetition of the provisions of other normative acts, including among them the Constitution, was not removed. Based on these features, we believe that Law on Investments was made in order to somehow further stressed the new government’s determination to improve the investment environment, namely for purpose of showing a changes and progress in the field of FDI in Serbia. Therefore, Law on Investments would not be having a substantial impact on FDI inflow.

• Details
• Contents