The world will remain global, but also increasingly wary of all kinds of risks that can hamper cross-border flows. It has long been essential for Serbia to more quickly improve its competitiveness, in order to better evaluate all resources and link itself to those production and trade chains that are in its interest.
The pandemic is spreading and persisting. In some countries, its first wave is only nearing its end, but it continues to flood the entire planet by jumping to other countries. Reliable knowledge about Covid-19 is spreading too slowly and insufficiently, so there is an insufficient basis to see when and how the pandemic could end, or whether it will remain with us in some form. Without knowledge about the duration of the pandemic, it is difficult to see what will remain behind it as a consequence for the world economy.
We have previous experience with global crises caused by mistaken economic measures or government behaviour. The only thing we have experienced is that the scope of economic decisions of the states is decreasing compared to the decisions of multinational companies, which are ever less obstructed by state borders. However, for now, Covid-19, as well as the previous migrant crisis, has restored the possibility for states to strengthen their borders in every respect, and thus slow downflows.
Modern life has, for its part, brought great change, with services growing faster than production in the overall economy. Until the expansion of tourism and information services, other services were largely local. But production has also changed, which is monopolised by-products and has relocated the production of their parts to many countries, with which production chains have been branched.
For a long time already, Serbia has received almost only the production of parts or finishings for products with foreign investments. And the required materials are mostly imported. As such many factories are under foreign ownership, as foreign bodies in our small national economy.
For a long time already, Serbia has received almost only the production of parts or finishings for products with foreign investments. And the required materials are mostly imported. As such many factories are under foreign ownership, as foreign bodies in our small national developing economy.
The pandemic has already served as a warning to multinational companies that state borders have increased the risk for them, and some have already suffered as a result of closing borders. But their enduring principle will certainly remain – that in a profitable economy one should constantly choose and use the cheapest resources (land, buildings, labour, energy, financing and benefits).
And Serbia has long since needed to more quickly improve its system and competitiveness, which would lead to the better valuing of all resources. In order to develop faster, Serbia should link itself to production and trade chains that are in its interest to a greater extent. The world will remain global, but also increasingly wary of all kinds of risks that can hamper cross-border flows and even strengthen economic chauvinism. But all the way to the limits of each subject’s own interests. When we overcome the pandemic, we will also complete a difficult recovery from it.