INFLUENCE OF TRANSITION AND FOREIGN DIRECT INVESTMENT ON THE ECONOMIC DEVELOPMENT OF MONTENEGRO IN THE PERIOD FROM THE YEAR 2010 TO 2016 Cover Image

UTICAJ PROCESA TRANZICIJE I STRANIH DIREKTNIH INVESTICIJA NA PRIVREDNI RAZVOJ CRNE GORE U PERIODU OD 2010. DO 2016. GODINE
INFLUENCE OF TRANSITION AND FOREIGN DIRECT INVESTMENT ON THE ECONOMIC DEVELOPMENT OF MONTENEGRO IN THE PERIOD FROM THE YEAR 2010 TO 2016

Author(s): Miro Blečić, Anđela Kostić
Subject(s): Economy, National Economy
Published by: Интернационални Универзитет у Новом Пазару
Keywords: transition; economic development; privatization; foreign direct investment;

Summary/Abstract: Today, the most frequently mentioned, analyzed, used for discussion, both in political propaganda, but also in socio-economic planning is a term transition. Each country depending on the level of economic development, in a unique way accept the transition and all the accompanying factors that cause each transition process. Some countries are taking advantage of the rapid pace of transitional able to enhance economic development and prosperity of their own, while there are also those of others, which in addition to a large number of reforms and measures did not use the benefits of transition. They remained trapped in the so-called group of developing countries, who have difficulty following the world economic development . The main reason why the transition is unpopular is that it takes time until the old system breaks down and build a new system, that is, until they start to work differently structured company, while workers are not profiled in such a different operation. Montenegrin characteristic and present live legacy is that workers have a claim against the company manages. However, this period may bring confusion in the sense that no one was to blame for business failures. The fact that a company has not made a profit, and it was not so important. Make sure you have secured the funds from those who are. No one has been held responsible for the result. Restoring a distorted picture of evaluation work in the actual framework is also one on the most important features of the transition, also the hardest tolerated and at least favorite.A lot of previous years of experience in different stages of Montenegro's economy, strong growth until the year 2008, but after that coping with the economic crisis, it can be concluded that the change in ownership structure and ways of thinking from planned to market production is a necessary change. If it is not in dispute, we will try to implement the mechanisms by which they are clearer, fairer and more transparent. But we must not forget that each privatization transaction, basically, a business operation in which each side tries to pass better. However, justice will, as with any flow of capital will always be problematic. Is it - in terms of fairness, the best one that privatization is not implemented? So, what's the alternative? The concept of social property? Or maybe directive state economy without private subjectivity in the economy?The role of government is not taking from his pocket a good company that does business in order to patch the holes of a product which does not pass. This is a rule that was true in the previous period. The new rules do not permit the business, it is totally contrary to market principles. The role of government in the present circumstances is to provide good social program, to the shock of adjusting to new circumstances was milder, and in particular stress, a good development program, which will allow existing companies from supernumerary find employment, but also the orientation of economic activity towards those areas have a future, that provide sustainable products market. This view is indeed an aggravating circumstance in the implementation of the privatization process.At the global level perspective, one of the basic characteristics of modern business is the mobility of capital. He moved to where there is a greater chance of fertilization. Does the sale of the company means that we lost the greatest treasures that someone allows you to "buy the cream" from them by buying cheap labor and resources? What are we in Montenegro important, what is our interest? Do we go in favor to create conditions for existing companies, troubled, catch up with the world? Are we in favor of that company, under new ownership, provides pay local people who work in this company? Whether it suits us and that will indirectly contribute and earn all those who do business with this company? Do we use and the possibility of employment of new workers? Do we mean something and filling the budget of Montenegro, thus greater well-being for all its citizens, which is achieved by charging taxes? These are just some of the questions posed by the transition and facing each country joining in the process. On which way is Montenegro and whether it can with its resources, both natural and technological development to keep pace with the world economy, will be the main issues of a given work.

  • Issue Year: 2016
  • Issue No: 10
  • Page Range: 20-33
  • Page Count: 14
  • Language: Serbian