PM presents Serbia 2020 Strategy

Serbian PM Mirko Cvetkovic and his deputy Bozidar Djelic presented the draft Serbia 2020 Strategy today. The concept envisages an increase in employment, GDP, export and investments, and is intended to be the basis of a long-term strategy of the country's development. PM presents Serbia 2020 Strategy The PM said that that the document should be adopted after consultations and a public debate in the first quarter of 2011. “Two most important parameters of development are GDP growth per capita which should reach EUR 8,000 by 2020, and an increase in the employment rate by over 400,000,” Cvetkovic said at a round table Vision of a Better Future - Serbia 2020. The economic strategy is aimed at a higher standard and better living conditions for all citizens, which will be realized through larger production which has to be sustainable in the long run. He said that the model, which had been used so far, was based on large domestic demand, export and the reliance on foreign funds and that all its potentials had been exhausted. “It is crucial for the economic growth to be based on the production of exchangeable goods and boost in export and investments,” Cvetkovic stressed. He underscored that it was necessary to carry out reforms in all segments of the society, reduce public expenditures and invest in infrastructure. The PM underlined that the strategic sectors in Serbia had to be defined, including agriculture, civil engineering, energy and transport. Djelic said that the draft Serbia 2020 Strategy was harmonized with the Europe 2020 plan, adopted by the European Commission in March 2010. He pointed out that the goal was to have two thirds of citizens between 20 and 64 years of age employed by 2020, adding that today, this rate was lower than 49 percent. The deputy PM said that the main goals of the draft Serbia 2020 Strategy were increase in the employment rate, promotion of human capital, investing in knowledge and technology, export-based growth, rational use of energy and poverty reduction. Mirko Cvetkovic and Bozidar Djelic (Beta) Praise and criticism Some of the participants of the round table have praised the document, but there were also those who had some objections and suggestions. Serbian Chamber of Commerce (PKS) President Milos Bugarin has praised the document, adding that Serbia needed it more in the beginning of the last decade. He said that more subsidies should be allocated for the agricultural production due to technological underdevelopment and pointed out that the agricultural export could significantly improve foreign trade deficit. Bugarin expressed hope that the draft strategy would not remain “a dead letter”. Economist Miladin Kovacevic thinks that the draft is generally good, but that it would be more complete if it contained extensive reforms of the public sector, which includes corporatization and privatization of the public sector, pension and disability insurance system, fiscal and other necessary reforms. ComTrade Group Head Veselin Jevrosimovic has warned that the information technology market in Serbia is in decline, while children in the EU would have online classes in five years. He called upon the government to reconsider its decision to increase VAT on computers from eight to 18 percent since January 1, 2011.

PM presents Serbia 2020 Strategy

The PM said that that the document should be adopted after consultations and a public debate in the first quarter of 2011.

“Two most important parameters of development are GDP growth per capita which should reach EUR 8,000 by 2020, and an increase in the employment rate by over 400,000,” Cvetković said at a round table Vision of a Better Future - Serbia 2020.

The economic strategy is aimed at a higher standard and better living conditions for all citizens, which will be realized through larger production which has to be sustainable in the long run.

He said that the model, which had been used so far, was based on large domestic demand, export and the reliance on foreign funds and that all its potentials had been exhausted.

“It is crucial for the economic growth to be based on the production of exchangeable goods and boost in export and investments,” Cvetković stressed.

He underscored that it was necessary to carry out reforms in all segments of the society, reduce public expenditures and invest in infrastructure.

The PM underlined that the strategic sectors in Serbia had to be defined, including agriculture, civil engineering, energy and transport.

Đelić said that the draft Serbia 2020 Strategy was harmonized with the Europe 2020 plan, adopted by the European Commission in March 2010.

He pointed out that the goal was to have two thirds of citizens between 20 and 64 years of age employed by 2020, adding that today, this rate was lower than 49 percent.

The deputy PM said that the main goals of the draft Serbia 2020 Strategy were increase in the employment rate, promotion of human capital, investing in knowledge and technology, export-based growth, rational use of energy and poverty reduction.

Praise and criticism

Some of the participants of the round table have praised the document, but there were also those who had some objections and suggestions.

Serbian Chamber of Commerce (PKS) President Miloš Bugarin has praised the document, adding that Serbia needed it more in the beginning of the last decade.

He said that more subsidies should be allocated for the agricultural production due to technological underdevelopment and pointed out that the agricultural export could significantly improve foreign trade deficit.

Bugarin expressed hope that the draft strategy would not remain “a dead letter”.

Economist Miladin Kovačević thinks that the draft is generally good, but that it would be more complete if it contained extensive reforms of the public sector, which includes corporatization and privatization of the public sector, pension and disability insurance system, fiscal and other necessary reforms.

ComTrade Group Head Veselin Jevrosimović has warned that the information technology market in Serbia is in decline, while children in the EU would have online classes in five years.

He called upon the government to reconsider its decision to increase VAT on computers from eight to 18 percent since January 1, 2011.