Research Paper: Sectoral and Economic Growth in Serbia

The financial crisis experienced globally exposed structural weakens in the Serbians economic growth and models. This prompted a need to accelerate the unfinished transition to the market exposure. Serbian experienced a rapid growth between the 2001-08 move that was driven by domestic consumption and let to the significant internal and external imbalances that were proven to be unsustainable these paper discuss spectral and economic growth performance in Serbia.

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Growth in Political Sector

After the 2014 and 2016 election, a stable government was formed that led to the country strength to overcome the past frustrations and build a momentum for various reforms in the country. The new government is fully committed to focusing on giving a stern a transformation in the state administration, the public finance and the economy at large (Storeygard, Henderson & Weil, 2012). The government has developed an economic plan that will cover 2015-18. In the plan, the principal mandate is to focus and ensuring that the financial stability in the country is restored, reducing the debt that the country has, and creating an environment for the economic recovery as well as growth to foster employment to positively affect living standards of the residents. In a bid to achieve this goal, the government noted that fiscal consolidation is very necessary. This consolidation must as well go in line with the structural reforms accelerated by economic growth, including state-owned reforms.

Serbian Economic Growth

Serbians economy constrained by both economic crises in the EU and by factors considered to be critical barriers to words economic growth. The business that improves the environment needs to for the proper development of the country. Serbian private sectors need serious improvements regarding international competition as well as the increase in the number of jobs that are required to avert the unemployment situation in the country. The United States of American aid (USAID) has managed to work with government counterparts, non-governmental agencies, international donors, and other U.S agencies to support business growth. This move has been achieved through strengthening the capacities of the municipalities, stimulate development by meeting the needs of the business in the countries.

Serbian has current programs that contribute to its economic growth. These programs include,

Business Sectors Enabling Projects

The project was initiated seven years ago by USAID. It aimed at increasing the competitive of the economy as well private sectors. The projects achieve this goal by Streamlining the business environment, improving the public and financial management and finally strengthening the financial market. The private sector determines the prioritization of the project in conjunction with the government of Serbia.

Sustainable Local Economic Development Project

The initiative was launched six years ago by the USAID. Since its introduction, it is known to be a sustainable local development project that supports the local government, the business and the civil society in a bid to increase economic growth. The projects core activities are supporting the inter-municipal partners to the rate of employment and reducing unemployment in the 32 municipals that are clustered in eight regions.

Private Sector Development Project

The Private sector development is a four years old project that was developed a bid to strengthen the private sector firms. This was done in 12 regions approved by the government of Serbia. The area where these projects were implemented were in the south and southwest of Serbia. The USAID task the government agency for regional development with the implementation of the project. The agency is meant to work together with the RDA networks. The work of DA in this is to help development companies and business clusters increase that sales and export goods and also create jobs.

Opportunity Bank Serbia

The other factor that contributes to Serbian sectoral and economic growth is the aspect of opportunity bank. The mandate of the bank is to provide micro, rural and small business enterprise lending services to people who have a business idea but cannot access the money from traditional banks. These clients are from the semi-urban and rural area of the countries. The bank specializes in giving a loan to many industries and agricultural sectors to increase the income of the farmers in the area. From its onset, the bank had a mission to help jobs, build a strong foundation of the small business and enable an economic transient of its clients. It has strategic branches that help utilize field based client and reach each and every client despite the remote area.

Women Education Sector

Women education center was launched two years ago, and its primary mandate is to provide vocational training to a woman and equipped them with the quality of skills. These skills reflect and meet the need of industries in Salem district. By achieving the training goal, the center caters for the industries labor force that can solve the market problems. As a result, it provides for growth in export of goods such as shoes, leather, and furniture. The workforce is sponsored and offers this services for free.

The New Beginning Project

To grow its economy and meet accession, Serbia must do the complete restructuring and privately many of its government-owned companies. The government owns more than 500 company. Recently a program was launched by the government aimed to privatize more than 400 companies. Due to this move, it is then expected that more than 30,000 workers will automatically accept the decision and take severance pay. It is important to note that before doing this, the government must explain its decision to people and give the people alternative ways be it in training or mentorship. Due to this, a new project was introduced. This project is called New Beginning Project (Jovanovic, Lipovac & Stanojevic, 2011). The project New Beginning project was started 18 months ago. This project is being implemented by the Serbian association of managers and DNA communications. It focuses on the regions with the largest number of retrenched workers. This will, in turn, motivate the workers in their knowledge and encourage them to start their own business. The reason why the program has to take part is that the workers who were retrenched have no idea of how to start their own business and entrepreneurship skills (Cockalo, Djordjevic & Bogetic, 2011). The project is aimed at giving them a new beginning in the building of the economy.

Conclusion

The microeconomic support in Serbia has had a significant improvement in the economy. Comprehensive data collected from different regions shows that GDP increased significantly at the rate of 2.5 annually. This increase has led to economic growth at 2.8 percent. The vast economic improvement was due to export reviving, and substantial growth in investment. Apart from the two mentioned factors, there was a massive increase in private consumptions though at a very slower pace mostly in the second half of the years. The country political stability has also contributed to its economic and sectoral growth. The issue of political parties, the presidential candidate and the elections as whole affects the growth of the economy (Woehrel, 2011). This is because the issues as mentioned above determine the management of the economy and the donations.

References

Henderson, J. V., Storeygard, A., & Weil, D. N. (2012). Measuring economic growth from outer space. The American Economic Review, 102(2), 994-1028.

Jovanovic, D., Lipovac, K., Stanojevic, P., & Stanojevic, D. (2011). The effects of personality traits on driving-related anger and aggressive behaviour in traffic among Serbian drivers. Transportation Research Part F: Traffic Psychology and Behaviour, 14(1), 43-53.

Djordjevic, D., Cockalo, D., & Bogetic, S. (2011). An analysis of the HACCP system implementation-The factor of improving competitiveness in Serbian companies. African Journal of Agricultural Research, 6(3), 515-520.

Woehrel, S. (2011). Kosovo: Current issues and US policy. Russia, China and Eurasia, 27(2), 231.