Consolidation of democratic institutions: The case of Serbia

Abstract

In recent years, the violation of the principles that guarantee the respect of democratic norms and institutions has placed Serbia into the category of deficient democracies, and more recently in hybrid regimes. Since the beginning of the transition, the implementation of political and economic reforms in Serbia has been characterized by frequent shifts of periods with modest progress in the field of political and economic transformation with periods of stagnation and even backsliding in regards to the important reform segments. The indicators of political and economic reforms point to the strengthening of extractive institutions. Extractive institutions protect the economic and political interests of privileged groups to the detriment of the rest of society. This leaves fewer resources available to stimulate economic growth and job creation, with negative countereffects on the regime legitimacy and trust, which are crucial for the implementation of economic reforms. Serbia's failure to provide stronger economic growth is largely caused by extractive institutions that determine the business environment. The development of extractive institutions is indicated by the absence of a more even distribution of political power, weaknesses in the mechanisms of checks and balances, deficiencies in the sphere of the rule of law, widespread corruption, problems in the sphere of protection of property rights. The transitional developments in Serbia can be regarded as a historical heritage that adapts to the current social environment and has a great impact on institutional performance and democratic consolidation. Prolonged exposure to extractive institutions creates a cumulative effect of institutional learning, where individuals become vulnerable to political abuse, dependent on the state and unwilling to use political mechanisms of government accountability, contributing to a vicious circle of extractive political and economic institutions. Identifying the mechanisms of such accumulation, which include prolonged exposure to extractive institutions, as well as the transmission of cultural patterns from older generations who have long experience with extractive institutions, is a complex research task.

Keywords

• extractive institutions
• democratic consolidation
• institutional efficiency
• rule of law
• corruption