Public sector reform, employment crucial to recovery

BELGRADE – Serbia’s politicians agreed Monday that the forthcoming early parliamentary elections need be followed by a public sector reform and work to reduce unemployment, simplify administrative procedures and adopt systemic laws so that Serbia could finally emerge out of transition.

In a debate on economic policies for Serbia, organized by Belgrade-based weekly NIN, the officials of Serbia’s political parties agreed that they the key industries to invest in are agriculture, food processing, IT sector, energy and education.

Dusan Bajatovic of the Socialist Party of Serbia (SPS) said that the party is advocating for a public sector reform as most of the unnecessary spending happens there.

He said that enterprises in restructuring are another major problem in Serbia, adding that law amendments should limit bankruptcy proceedings to 60 days.

Bajatovic said that economic recovery cannot come through some other country’s businessmen but rather through development of local resources and technology.

“If our greatest advantage is cheap labor, then we will generate poverty,” Bajatovic said.

Mladjan Dinkic, leader of the United Regions of Serbia (URS), said that the country’s crucial problems are unemployment and low economic growth, excessive bureaucracy, and high budget deficit and public debt.

He pointed out that these problems cannot be resolved through savings, but rather through incentives for investment and employment, adding that the URS is not in favor of closing the doors of the Development Fund, but rather calls for its recapitalization and setting up a state-run development bank.

Democratic Party (DS) official Dusan Nikezic said that the biggest problems are...