economy
February 16, 2026
INTERVIEW Ivan Ostojić, co-author of the book "The Myth of the Balkan Tiger": The political elite from the 90s and early 2000s merged into a new economic elite
Ivan Ostojić became known to the Serbian public as the co-author of the book "The Myth of the Balkan Tiger" with Professor Ognjen Radonjić, in which, contrary to state propaganda, they presented numbers that the authorities skip, as well as interpretations of economic indicators that actually expose that propaganda.
TL;DR
- Serbia has suffered significant financial losses, estimated at $600,000 to $1 million per citizen since 1990, due to poor economic choices.
- The political elite from the 1990s and early 2000s has largely transformed into the current ruling economic elite.
- Serbia's real GDP growth has lagged behind comparable Eastern European countries, indicating divergence rather than convergence with developed economies.
- The country's economic growth is driven by debt and state investments in projects with questionable long-term economic value, while underinvesting in education, science, and healthcare.
- Foreign direct investments primarily leverage cheap labor and state subsidies, with limited transfer of knowledge and technology, and profits are largely repatriated.
- Weak institutions, a lack of independent judiciary, and state overreach in the economy stifle private initiative and entrepreneurship.
- A promising generation of young entrepreneurs is hindered by a system that fails to provide institutional security and access to capital, leading many to establish businesses abroad.
- Serbia should re-evaluate its regional focus, prioritizing stronger economic ties with wealthier neighbors like Romania and Hungary over those with less economic potential or strained relations.
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