From the Present Despair Towards a Utopian Dream: To and From
Between Hopeless Reality and an Imagined Arcadia
Keywords:
institutions, economic policies, macroeconomic stability, foreign trade balance, foreign indebtedness, public consumption, liberalization of the economy, the influence of international institutions.Abstract
The paper is an extended polemic with economists advocating a broader and more intensive state intervention as a way of overcoming the present dramatic economic position of Serbia. While there is a broad and easily reached agreement concerning the diagnostic picture of the economy, far-reaching and indeed fundamental controversies arise when it comes down to identifying instruments, institutional arrangements and strategies of consolidating the economy and launching it on a path of sustainable long run development. A major issue is the extent to which the institutional constraints prevent the government from pursuing an efficient set of policies as opposed to subjective weaknesses embodied through the incompetent and insufficiently devoted personnel occupying the key positions in the governing directorate. Particular emphasis is placed on combating the view that all difficulties stem from the wrong people holding high posts in the political set-up and implementing perilous policies leading to economic collapse. The behavior of the political agents and organizations is seen as institutionally conditioned and the room for their discretionary decision making correspondingly reduced. It is also pointed out that the choice itself of the people who are to be placed on the top of the governing hierarchy is institutionally conditioned and...
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