Forum in Novi Sad: Serbia's Economy Based on Peripheral Jobs and Corruption

A critical assessment of Serbia's economic model was presented at a forum in Novi Sad, where experts voiced strong concerns about the nation's reliance on low-value-added activities and pervasive corruption. The prevailing sentiment among economists like Miodrag Zec and Ognjen Radonjić is that Serbia has failed to define a clear economic vision, leading it down a path of "peripheral" or "cable-wrapping" jobs, which offer little in terms of technological advancement or sustainable growth.

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The key problem is that we, as a state, did not know what we wanted, which is why, instead of investing in jobs that bring technological progress, foreign investments were attracted that developed so-called finishing or peripheral jobs.

Radonjić specifically highlighted the insidious nature of corruption embedded within the economic system. He pointed to practices such as money laundering, tax evasion, and the siphoning of public funds for private enrichment, often channeled into cryptocurrencies. The Belgrade-Budapest high-speed railway project was cited as a prime example, where costs allegedly ballooned far beyond initial estimates, with opaque contract amendments removing transparency and public bidding processes. This, he argued, serves as a mechanism for organized crime and those close to the ruling elite to profit at the expense of public resources.

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The key problem is that we did not know what we wanted, so Serbia opted for the model of wrapping cables.

Dejan Šoškić, another economist, cautioned against relying solely on GDP growth figures as indicators of economic health, especially when foreign companies dominate capital ownership. He suggested that the income generated from capital often flows out of the country, masking underlying issues. From a Serbian perspective, this critique resonates deeply, as it addresses long-standing frustrations with economic policies that seem to benefit a select few rather than fostering broad-based prosperity. The discussion underscores a desire for genuine industrial development and a more transparent, equitable economic future, moving beyond superficial indicators of success.

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Numerous corruption mechanisms are present in the domestic economy - from money laundering, through tax evasion, to the withdrawal of money 'which is then invested in crypto-currencies'.