Expert: Only Investors Favored by Government Can Do Business without Risk

Ljubodrag Savic (YouTube screenshot)

Foreign companies whose investments in Serbia are arranged by the Serbian government and which receive subsidies and other forms of assistance do not care whether the rule of law in the country is implemented or not, whereas for those who are not in the government’s favor, every investment risky, Belgrade School of Economics Professor Ljubodrag Savic, said on Oct. 7.

“This, coupled with the sloppy, slow, inefficient and sometimes corruptible and corrupt legal system, makes it completely clear that one category of foreign, but also of domestic investors in Serbia is discouraged and does business at their own risk,” Savic said for the Direktno.rs portal.

Ha added that those investors favored by the government do not have to line up in front of various offices and wait for several months or even years to obtain necessary permits.

“This [obtaining permits] is done for them by the government, or is at least expedite by the authorities. Do those working on the Belgrade Waterfront, for instance, have to wait for some permits? Government agencies do the job for them. If major investors took into account the condition of the Serbian business environment, not many of them would place their money in Serbia,” Savic said.

He also said that foreign investors go to other countries in order to make money and “do not care whether it is Serbia or Hungary; they go where conditions are better and where they can be sure that their business will be successful.”