Uticaj doznaka na ekonomski i socijalni razvoj u Srbiji
Influence of Remittances on Economic and Social Development in Serbia

Summary/Abstract: According to the data of the World Bank for 2004, Serbia falls among 11 largest receivers of remittances in the world. Although the inflow of remittances to Serbia is important and permanent, a very low amount of remittances has been invested into development. Remittances have mostly been used for personal consumption, non-productive investments and cash savings (so-called ‘straw mattress savings’). Investments have mostly been directed to building of houses and development of agricultural production. It is hard to estimate the influence of remittances to improvement of the poorest segment of population. It is beyond any doubt that remittances contributed the reduction of poverty by increase of available income of population that received them, and hence in Serbia as a whole. In difference from foreign aid and income from privatization, which are of limited duration, and foreign direct investments, which volume changes depending on the risk of the country, remittances are a stabile source of foreign currency income. For many years they were the main means for covering the deficit of payment balance. Remittances undoubtedly contributed the alleviation of symptoms of crisis in the economy of Serbia. This anti-cyclic effect is confirmed by permanent and stabile income of remittances regardless the growth or decrease of economic activity in Serbia.

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