СРБИЈА И ЕКОНОМСКЕ ИМПЛИКАЦИЈЕ ВЛАДАВИНЕ ПРАВА
SERBIA AND ECONOMIC IMPLICATIONS OF THE RULE OF LAW

Summary/Abstract: The rule of law is a concept of par excellence political and legal nature. However, in view of considerable economic implications of the rule of law, it is justifiable to single out the economic concept of the rule of law. The rule of law is subject matter of economic analysis of law and institutional economics which apply different methodological paradigms in analyzing its complex and multidimensional nature. The paper presents a survey of the issues and problems pertinent to the theoretical framework that correlates the rule of law and economic growth. The paper discusses how different economic paradigms understand rule of law, how it is developed, and the possible implications on economic efficiency, transaction costs, entrepreneurship, specialization, investments and economic growth. The paper points out to economic consequences of the weak rule of law in Serbia and deals with correlations between the rule of law and indicators of economic performance in Serbia. The findings of local and international reports continuously emphasize the problem of the weak rule of law in Serbia. Although the European Commission Progress Report on Serbia 2019 commanded Serbia’s progress in some areas, it has underlined again the weak rule of law. This statement refers to Chapters 23 and 24 of the Accession Negations, as well as to the problem of establishing the functional market economy, business environment and structural reforms. Economic implications of the weak rule of law are reflected in insufficient investment which cannot cover the underinvestment trend observable for years. The Fiscal Council of the Republic of Serbia points out to the weak rule of law as a fundamental factor for insufficient economic growth rate.

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