Download e-book for kindle: Serbia's Transition: Towards a Better Future (Studies in by M. Uvalic

By M. Uvalic

ISBN-10: 0230211607

ISBN-13: 9780230211605

The publication analyzes the two decades of financial transition from socialism to capitalism in Serbia. It deals a finished assessment of the achievements and screw ups of the transition, and explains why its path has been extra advanced and targeted than in other places within the former socialist global.

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Extra info for Serbia's Transition: Towards a Better Future (Studies in Economic Transition)

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The chapter also illustrates why the new Yugoslav government’s tasks at that time were extremely complex. Parallel to the launch of the most important political and economic reforms, it was important to undertake measures for the return to good-standing in international organizations, raise donors’ assistance, set up new institutions in support of transition, reorganize the public administration, and reach agreement that would accommodate both Serbian and Montenegrin interests. A detailed account of the implementation of the transition to a market economy in Serbia from late 2000 onwards is given in Chapter 6.

Most importantly, the ‘Law on the circulation and disposal of social capital’, adopted in December 1989, called for the sale of social capital of enterprises to domestic and foreign buyers through auctions, therefore announcing privatization of the bulk of the economy. Given the insufficiently stimulating conditions of the law,14 no sales took place and the law had to be amended in August 1990 in order to offer greater incentives. According to the new regulations, the privatization of social sector enterprises was to take place through sales of enterprise shares at a 30 per cent discount to present and former employees, other citizens and pension funds, on the basis of the book value of assets, but employees (both present and former) were given a further one per cent discount for each year of employment, up to a maximum of 70 per cent of the nominal value of the shares, to be paid within a 10-year period.

Over the next decades, the desire of Yugoslav policy-makers to depart from the traditional Soviet model, but without abandoning some of the most essential features of communism – primarily a one-party political system and non-private ownership of the bulk of the economy – led to various experiments with ‘market socialism’. Yugoslavia’s unique economic system stimulated considerable academic interest from the 1950s to the 1980s, as an example of a potential ‘third way’ between capitalism and socialism (Estrin and Uvalic, 2008).

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Serbia's Transition: Towards a Better Future (Studies in Economic Transition) by M. Uvalic

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