In an interview with “Dnevni Avaz”, the Minister of Finance of the Republic of Serbia, Sinisa Mali, spoke about the “Mini Schengen” project and the benefits it brings to the Western Balkans, economic cooperation in the region, his work in the Serbian Government, measures to repair the damage caused by the corona pandemic, as well as their political plans for the future.
*An agreement on “economic normalization” between Belgrade and Pristina was recently signed in Washington. What are the key benefits of the signed agreement?
– The key benefits of the agreement are even faster integration and economic development of the entire region. We got the maximum we could, especially on issues that are important for the living standards of citizens living in the Western Balkans region. The region’s exports have increased significantly in recent years, but the region’s economies remain poorly integrated into world trade. The greater presence of American capital in this area will provide an opportunity to change that.
Where it comes, others come. And not only that, Americans bring with them standards that are sometimes as important as the investment itself. For example, International Development Finance Corporation (DFC) projects must undergo rigorous financial, environmental, and social impact analysis to ensure that they meet internationally recognized standards.
During their projects, they also take into account respect for human and workers’ rights. The economic normalization of our relations with Pristina will also contribute to the countries in the region – it will have a stable environment, which is important for any economy. For “Mini Schengen”, perhaps the most important point from this agreement, it is important that Pristina agreed to be part of the initiative. And that is the concrete benefit of this agreement.
*You mentioned “Mini Schengen”. Given that you are an economist and the Minister of Finance, can you briefly tell us what would be the key advantages of creating such a union?
– Can you imagine what a market of almost 20 million inhabitants would mean for the world and world trade, where business conditions are uniform, bureaucratic obstacles have been removed for easier crossing of the border, where citizens cross the border based on their ID card and where fluctuation is easier workforce?
Such a market is also desirable for future investors who look at their investments strategically, today they want to cover entire regions and regions where they come from, and not to come and be stationed in one city in the Balkans. The American International Development Finance Corporation, which opened an office in Belgrade, is proof of that.
But more importantly, I am personally convinced that “Mini Schengen” will help keep young people. The labor market will be wider and more comprehensive, joint work permits will be easier to issue. Recognition of qualifications and diplomas, without additional procedures, will provide a greater opportunity for labor movement, which will improve the availability of labor.
*Nevertheless, despite all the benefits it would bring, the idea of a “Mini Schengen” met with great resistance from certain politicians in the countries of the region. As the most common argument against it could be heard that with it, Serbia, as the largest state, would establish economic and political domination in the region to the detriment of others. How do you comment on that?
– Some analyzes say that greater economic integration of the region would contribute to an increase in regional GDP at the annual level of 1 percent, and maybe even more. So, although Serbia is the largest exporter, all countries will benefit from the “Mini Schengen”. I believe that it is clear to everyone that only further, stronger, more concrete economic and trade integration of the Western Balkans region can enable and facilitate the transition to the model of accelerated and sustainable growth of our economies, Novosti reports.
