economy
April 6, 2026
The Serbian Path to the Bottom of European Development
That's how it is. The more domestic money you spend on investments, the less remains for personal and state consumption. In the long run, this policy has its advantages. But it's a slower path to higher employment, higher wages and pensions, or a higher standard of living. And patience is limited, so people can get tired of a government pursuing such a policy.
TL;DR
- Serbia's economic policy has prioritized rapid growth through foreign investment, which has come at the cost of domestic investment and consumption.
- The sale of state-owned companies like PKB, RTB Bor, and NIS is criticized as detrimental to national sovereignty and technological progress.
- Foreign investments have largely replaced domestic ones, often by employing cheap labor and exploiting natural resources rather than boosting productivity.
- Despite claims of extensive infrastructure development, the article points to significant delays and cost overruns.
- Serbia has a negative balance of payments due to dividends, reinvested profits abroad, and loan interest, exacerbated by reduced new investments.
- Future borrowing for public investments is limited due to significant debt repayment obligations.
- While political instability deters investors, the primary cause of the investment slump is the exhaustion of cheap labor and subsidies, alongside global geopolitical issues.
- The author advocates for a return to a more challenging, self-reliant economic strategy.