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The Government of the Republic of Serbia

In the service of citizens

Fighting poverty a concern for the entire society

Belgrade, 17 October 2005

Serbian Deputy Prime Minister Miroljub Labus said today that direct investment, strong economic growth as well as the development of rural areas and agricultural production are necessary for poverty reduction in Serbia.

Author: Tanjug

Speaking to the Serbian parliament on the occasion of marking the World Day to Overcome Extreme Poverty, Labus said that the basic reason for poverty in Serbia is unemployment, which currently stands at 15 percent. He said this figure shows that more than half a million people are directly affected by not having employment, adding that unemployment figures are half this in Europe.

He said that the government of Serbia, in cooperation with foreign donators and domestic non-governmental organisations, is carrying out an active policy of employment and thus halting the growing trend of unemployment.

Labus recalled that tax measures have been adopted in order to stimulate employment with special attention paid to those that are newly employed, aged or invalids. He welcomed the determination of the Serbian parliament’s Board for Poverty Reduction, which will carefully watch over the new laws being adopted and make sure they are in accordance with the needs and possibilities of the poorest citizens.

The Deputy Prime Minister said that initial results have already been achieved and in the forthcoming years, through cooperation between all partners, the final aim of the Poverty Reduction Strategy can be achieved and the number of poor citizens will be cut in half by 2010.

Labus said that foreign investment and strong, continual economic growth are necessary for achieving that aim. He recalled that the Serbian parliament has adopted nearly 50 laws concerning the economic system and their implementation has created a hospitable business environment.

He said that the level of investments grew to18 percent in 2004, compared with just 12 percent in 2001, adding that a growth of 25 percent until 2010 has been planned in the Poverty Reduction Strategy.

Labus said that the new law on mortgage should help reduce poverty, as well as the Fund for the Development of Serbia, which is expected to grow into a fully developed bank working towards achieving the aim of strengthening the private sector and bringing uniformity to economic development of the region.

The Deputy Prime Minister said that developing rural areas is especially important, as the population is twice as poor as in cities, adding that the best way to eradicate poverty in rural areas is to enhance agricultural production. According to Labus, €27 million was allocated for that purpose in the previous year and approximately the same sum will be used this year.

Labus said that the fight against poverty should concern the entire society and that there is no shame in being poor, but a society that does not take care of its poor should feel shame.