The two most important steps the Serbian government has to do in terms of the economy is to simplify business conditions and reform public finances.
This is what outgoing head of the World Bank office in Serbia Loup Brefort has told Tanjug in an interview.
“The regulation guillotine has been spoken of for years and yet it has not been implemented,” he said, adding there were other measures that had not been applied and many other obstacles to faster establishment of companies and their operation.
New jobs are mostly created in the private sector, so a detailed plan of activity for removing business obstacles is needed, because everyone seems to know what to do and agrees on the course of action, but there should be deadlines in which to do it, he noted.
“If other countries have managed to simplify their procedures and regulations while protecting their public interest, then Serbia can do it as well, and there is no reason for the process to be taking so long,” the WB official remarked.
As for the public finances reform, Some activities have been conducted along with the 2013 budget, but it turns out it is not enough, so some additional steps were taken together with the budget review, which are all steps in the right direction, but they have to continue, he stressed.
“Serbia cannot continue to rely on loans and the international financial market to secure funds for salaries, pensions and government operation,” Brefort underscored.
The World Bank supports the Serbian Ministry of Economy in its attempt to complete the restructuring of companies, because they have been a burden for the economy and public finances for years, Brefort pointed out.
The implementation of the government action plan for those companies could save between 0.7 and 2 to 5 percent of GDP in the next 18-24 months, which is a lot of money, Brefort said.
The World Bank loan of USD 200 million, which could be given out to Serbia this year as budget support, is connected to the support this international institution wants to provide for company restructuring, he stated.
Brefort added that his replacement at the head of the World Bank office in Serbia will be Tony Verheijen, an economist specialized in management and public administration reform. He will take office on July 29.
Source B92
