NEZAKONITI TOKOVI NOVCA – SLUČAJ SRBIJE
ILLICIT FINANCIAL FLOWS – THE CASE OF SERBIA

Summary/Abstract: The subject of this paper is the analysis of illicit financial flows in developing countries and their impact on sustainable economic development, the budget and the shadow economy, with particular reference to the case of Serbia. The paper analyzes the techniques of illicit inflows and outflows of money, their magnitude and their negative impact on economic and social environment. We conclude that instead of focusing on curbing the informal economy, reducing administrative employment and restructuring public enterprises, fiscal consolidation in Serbia, which began in 2015, focused primarily on unconstitutional pension cuts and discriminatory public sector wage cuts. The introduction of estimated illicit financial flows in the observed period into legal flows, on the other hand, would make fiscal consolidation unnecessary, while it would certainly contribute to the strengthening of local economic development, domestic institutions and citizens’ confidence in the government and all political actors.

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