Economic reality and prospects of Serbian economic recovery as a prerequisite for successful defense

Abstract

The economic reforms of the Republic of Serbia have, after 2001, initiated the transformation of institutions. However, they still remain insufficiently functional. The new Constitution has been adopted, as well as dozens of reform legislation; value added tax has been introduced; and the social policy reform has been launched. However, the market economy in the Republic of Serbia does not yet function in a sustainable manner, not even at the level of advanced transition countries, because the interference of politics is largely decisive for the economic position, especially that of enterprises and institutions in the public sector. The economic power of the state is a decisive factor in the ability to use the Serbian Armed Forces in accordance with their assigned missions and tasks, as the Armed Forces, being an important state institution, are allocated a part of the state budget.

Keywords

• economic development
• institutional changes
• reforms
• public sector