Serbia'S Transition To Market Economy: Why Has The Model Not Delivered?
The paper discusses the transition to a market economy in Serbia, a country that until the early 2000s was one of the principal laggards in the transition region. The paper tries to explain why Serbia, which had a relatively good starting position in 1989, has encountered substantial delays in carrying forward the main objectives of the transition to a market economy. Despite political stabilization and many positive economic achievements, the post-2001 transition strategy has not delivered the expected results. The strategy was based on the hyper-liberal model which placed emphasis on liberalization, stabilization and privatization, in line with the recommendations of the "Washington consensus", neglecting many other important areas of reform. With the new post-2000 turn towards the market mechanism, the essential role of the state and of state institutions was underestimated, which contributed to various long-run failures.