Corruption is an elaborate system in Serbia, from top to bottom, effective at undercutting institutions and the rule of law and costly to the tune of at least 1.6 percent of the gross domestic product according to the Fiscal Council, the Biznis i finansije business monthly reports in its April 25 issue.
"The malignancy leads to stagnation, declining competitiveness, increased poverty and national debt," Dejan Soskic, a professor at the University of Belgrade's Faculty of Economics, stressed in an analysis on the impact of corruption in Serbia.
As a group of individuals and companies are elevated above others that follow the law, free and fair competition is destroyed -- on the labor market, the goods and services market and the money and capital market, the article noted.
Corruption in the form of issuing fake degrees and hiring individuals who lack required skills hinders merit-based business success, driving the best to leave the country. It spurs the proliferation of low-quality goods and services at steep prices, like unsound roads, exorbitant railway reconstruction and construction, or the overhaul of power plants which immediately proceed to break down, the article noted.