Limitation for sustainable development of the Republic of Serbia

Abstract

In the first part of the paper we analyze core limiting factor for sustainable development in Serbia - delay of transition process, and unused experience of countries that had been in transition. Even one decade later, Serbia is not acknowledged post-Washington consensus recommendations based on the experiences of some countries in Central and Eastern Europe. If sustainable development is understood as a country's ability to function in the given capacity, it is clear why in that second part of the paper we analyze the external imbalance of the Serbian economy. In the third part of the paper we analyze the recommendations for a new strategy of sustainable development. The economic development today is based on three sectors: financial intermediation, retail and wholesale trade, transportation, and telecommunications - that belong to non-exchangeable sector of the economy. Serbia needs to strengthen exchangeable sector in order to have export-stimulated growth instead of demand-stimulated growth.

Keywords

• corporate managing
• privatization
• export structure
• sector of exchangable and non-exchangable goods
• foreign debt