Serbia

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Serbia
Serbia has some major challenges ahead. According to Serbia’s current economic stature, there are many key responsibilities to prevail. A local city in Serbia created an LED (Local Economic Development) which includes a strategy in order to employ 25,000 people who previously lost their jobs in the economic crisis. Although, the LED plan lacked feedback and input from its fellow citizens, the approach is now receiving more attention from citizens who are in debt and also those who receive minimal or no income. Serbian government officials are trying to implement this and “a task force was formed for each area in order to develop a detailed plan to be incorporated into the overall LED strategy.” The country’s inflation rate in terms of consumer prices has increased from 6.3% in 2010 to 7% in 2011. This means that there is a general increase in prices causing a decrease in the purchasing value of money. Therefore, people are spending too much money and going into debt, ending up not being able to support their families. During recent times, there have been some high government expenditures for salaries, pensions, and unemployment. There is a growing need for new government borrowing and an increasing amount of public and private foreign debt. Another drawback in the country’s economy is the stagnant levels of foreign direct investment. There has been little activeness and much more unnecessary stationary movement in the economy. The inert movement is mainly due to a high percentage of economic activity remaining in the hands of the state. Privatization incomes and revenues have fallen steeply in recent years. Other serious challenges that will slowly need to be resolved in order to have a more constructive economy include an inefficient judicial system, and an aging population. The country is also encountering high levels of corruption. One major factor, which…...

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