The Effects of Economic Policy on Financial Activities of Enterprises Cover Image
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Ефекти економске политике на финансијске перформансе предузећа
The Effects of Economic Policy on Financial Activities of Enterprises

Author(s): Ivica Stojanović, Radica Pavlović, Nataša Bogavac-Cvetković
Subject(s): Politics / Political Sciences
Published by: Nova srpska politička misao
Keywords: economic policy; financial performances; enterprise.

Summary/Abstract: The economy of the Republic of Serbia is undergoing a process of recession. At the same time, public debt, foreign debt, the unemployment rate, the purchasing power of the population and many other indicators are increasingly pointing to negative trends. What is happening? Analyses have shown that enterprises as basic economic entities do not function well. The financial performances of enterprises are very bad. The question this gives rise to is: why? Due to the economic policy conducted in the Republic of Serbia in the first and at the beginning of the second decade of this century. The economic tendencies followed the trend of economic-system changes of “shock treatment” and the Washington Consensus, encouraged final private and public expenditure instead of investing in a new structure of the economy, new technologies, educational system and scientific research, new products and increasing employment. Enterprises are left to their own devices, exposed to the influence of pseudo-market institutions and inadequate economic policy measures.

  • Issue Year: 20/2012
  • Issue No: 01+02
  • Page Range: 111-134
  • Page Count: 24
  • Language: Serbian