Role of State in New Growth Model of Serbian Economy

The proposed project is to contribute to creation, monitoring and evaluation of institutional and policy measures considered as a part of the ‘new transition’ in Serbia and to defining of the state role in establishing of a new growth model for the next decade in which the country is foreseen to access the EU. Despite professional consensus concerning the new model it is at times understood in different ways according to various interests. Three lines of arguments will pilot the research: 1) development of policies directed to spur up productive and export oriented projects that will increase employment, together with appropriate incentives to enhance competitiveness and entrepreneurship 2) market economy institution building, its adjustment to the EU requirements and its impact on growth 3) public sector reforms and faster improvement in infrastructure. Additionally, institutions will be analysed (how to speed up their reforms), fiscal policies in the new growth model and the ways for establishing a sustainable model guided by export and employment expansion (contrary to the former growth based mainly on the spontaneous FDI inflows, privatisation and consumption increase). This requires some re-distribution of reforms burden, institutional adjustments and the new role of the state in creating policies, incentives and regulation. The main criteria for choosing and assessing proper policies will rely on estimating macro and micro-economic impact of analysed measures.