Serbia and Montenegro : An Agenda for Economic Growth and Employment

World Bank

Serbia and Montenegro : An Agenda for Economic Growth and Employment

Autores

World Bank

Editor

Washington, DC

Descripción

Upon resumption of its transition to a market economy in late-2000, Serbia made good initial progress across a range of areas. This progress began from a very difficult starting point which reflected the legacy of a decade of isolation, conflict, and poor economic management. However, deep structural weaknesses remain. Growth rates of around 4 percent per year will not suffice to produce a rapid convergence of living standards towards historical levels. Moreover, the positive elements of Serbia's recent performance are not sustainable without further adjustment and sustained reform. This report analyzes Serbia's recent performance and near-term reform priorities, in five areas which are particularly important for growth and employment creation. Eight themes emerge as the key reform priorities for enhancing growth and employment generation in Serbia: enhanced political stability and improved governance are key prerequisites for sustained growth; reduction of the public sector, thus reducing spending and fiscal burdens; promotion of export development, addressing the anti-export bias, through adequate institutional framework, tariff reform, and a strong trade policy; completion of enterprises and banks privatization; enhanced financial discipline and competitiveness; enabling an improved business environment; foster an enhanced, flexible formal labor market; enhance quality of, and access to education and training. The report demonstrates in great detail the outlined package of substantial and permanent fiscal adjustment, and sustained progress in structural reform, in order to generate the higher investment rates and a more competitive economy which can prod sustainable growth, and improved living standards over the medium-term. Such policies need to be implemented with urgency and unwavering commitment.

Palabras clave

ADULT EDUCATION, ASSETS, AUDITING, BALANCE SHEETS, BANKING SYSTEM, BANKRUPTCY, BENCHMARKING, BUDGET CONSTRAINTS, BUDGET DEFICITS, COLLECTIVE BARGAINING, COMPETITION POLICY, COMPETITIVE ECONOMY, COMPETITIVENESS, CONTRACT ENFORCEMENT, DEBT, DEBT RESTRUCTURING, DEPOSITS, ECONOMIC ACTIVITY, ECONOMIC EFFICIENCY, ECONOMIC GROWTH, ECONOMIC IMPLICATIONS, ECONOMIC REFORM, ECONOMIES IN TRANSITION, EMPLOYMENT, ENTITLEMENTS, EXCHANGE RATE, EXCHANGE RATES, EXPENDITURES, EXPORT GROWTH, EXPORT LED GROWTH, EXPORTS, FINANCIAL SECTOR, FISCAL DEFICITS, FISCAL POLICY, FOREIGN EXCHANGE, FREE TRADE, GDP, GOVERNMENT EXPENDITURES, GROWTH POLICY, GROWTH POTENTIAL, GROWTH RATE, GROWTH THEORY, HARD BUDGET CONSTRAINTS, HUMAN CAPITAL, IMPORTS, INCOME, INFLATION, INNOVATIONS, INTERNATIONAL TRADE, LABOR FORCE, LABOR LEGISLATION, LABOR MARKET, LABOR MARKETS, LAWS, LEGISLATION, LIVING STANDARDS, MACROECONOMIC POLICIES, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MACROECONOMIC STABILIZATION, MARKET ECONOMIES, MARKET ECONOMY, MINIMUM WAGES, MONETARY POLICY, PENSIONS, PRIVATE BANKS, PRIVATIZATION, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROPERTY RIGHTS, PUBLIC DEBT, PUBLIC DISCUSSION, PUBLIC GOODS, PUBLIC UTILITIES, REAL GDP, REAL SECTOR, REAL WAGES, REGULATORY FRAMEWORK, SAVINGS, STREAMS, SUSTAINABLE GROWTH, TARIFF BARRIERS, TAX ADMINISTRATION, TAX COLLECTION, TAX RATES, TAXATION, TRADE LIBERALIZATION, TRADE POLICIES, TRANSITION ECONOMIES, UNEMPLOYMENT, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, WAGE INCREASES, WAGES, WTO