Textile Effects of Privatization Serbian Industry

The privatization of SOEs has not brought the expected development incentive in the textile industry in Serbia. Sales of capital, as the dominant model of this process was most unfavorable form of ownership restructuring of companies in this industry, and labor intensive sectors around our economy. With the weight of accumulated financial problems and significant redundancies, most large and medium-sized enterprises, which were the backbone of our textile industry, passed by the wider interest of private investors. FDI inflow was only symbolic, without significant support of state institutions, seriously hampered the implementation of inelastic legal solutions. Instead of applying more convenient model of privatization, this process is, in these okolnostime, necessarily directed towards the liquidation of a large number of companies, with highly negative consequences for the structure and development potential of this branch of industry as a whole. Turning off the key enterprises in the raw materials sector, there was a vertical disintegration of her, with long-term negative effects on the further balanced development. Import dependence has become a key structural feature of the industry despite the dynamic growth of exports in the last ten years. Created the elastic structure of production capacities, with much slower process of their concentration on market principles.