Strategic and tactical measures to overcome real sector competitiveness crisis in Serbia

In the second part of 2010 after two subsequent quarters of positive economic growth Serbia formally left from recession. This encouraging fact poses two questions. First, is the end of recession irreversible? Second, do policy responses to the crisis secure sustainable growth? Pondering over these questions one finds more hidden issues than answers. The explanatory element is real sector competitiveness. The 2010 GDP growth rate projected at 1.5 percent is not nearly sufficient to compensate the 4 percent reduction in GDP recorded in 2009. Furthermore, the question is when will Serbia increase competitiveness that would help compensate the loss of 1/3 of GDP and 3/5 of industrial production owed to transition recession in last two decades? Our suggestions in the research will contain proactive strategic measures and passive tactical one’s to overcome real sector competitiveness crises. The strategic measures are geared towards adopting a new investment-driven economic model based on massive investments and development of a new institutional framework fully compatible with EU. Investments triggering competitiveness growth will follow three parallel trajectories: strategic sectors, food-processing and agriculture, and infrastructure. Furthermore, we will recommend Balanced Scorecard based strategy for competitiveness improvement.