Will geopolitical tensions increase Serbia's reliance on imported medicines? A domino effect

Serbia faces a potential crisis in medicine supply as geopolitical tensions escalate, a concern largely overlooked amid wider worries about energy security. The country's pharmaceutical imports represent the second-largest item in its import structure, trailing only oil, with a foreign trade deficit in this sector surpassing 1.16 billion euros.

Economists warn that prolonged geopolitical instability will impact all sectors of the Serbian economy, with citizens most affected by disruptions in strategic areas like energy, finance, and the food and pharmaceutical industries. While the recent conflict in the Middle East has heightened public awareness of potential fuel shortages and price hikes due to Serbia's heavy reliance on imported oil, the vulnerability of its medicine supply chain receives less attention.

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Now, when everything has been sold off, control over key resources has been lost and we have been brought into a colonial position with severe consequences.

Compounding this vulnerability is the fact that Serbia no longer has any domestic pharmaceutical companies. Economist Božo Drašković attributes this to a post-2000 policy of privatization, which led to the sale of major companies like Galenika, Jugoremedija, and Hemofarm. He argues that relinquishing control over this strategic sector has placed Serbia in a "colonial position" with severe consequences.

Drašković further explains that the pharmaceutical industry, while highly profitable and innovative, is also prone to market manipulation. He believes that retaining domestic control over key aspects of this sector was crucial. Now, with foreign companies dominating, Serbia faces a high risk of medication shortages, jeopardizing public health.

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That strategic branch we have left to foreign companies, and that is why we are exposed to a high risk of possible shortages of some medications, which calls into question the health of the population in Serbia.