Q:
A:
Prevention of monopoly to boost competitiveness
Belgrade,
20 December 2005
Serbian Minister of International Economic Relations Milan Parivodic stated today that the basic principle for boosting competitiveness of the Serbian economy is the prevention of monopolistic behaviour on the market.
Author:
Fonet
Speaking at a panel discussion organised by weekly Vreme and the Friedrich Ebert Stiftung Foundation, Parivodic said that without economic competitiveness there can be no political democracy and stressed that monopolies, first and foremost in the fields of energy and transport, must be reconsidered immediately.
He said that the claims that the worst thing is when a state monopoly becomes private are true, which should be taken into account in the course of privatisation. Parivodic said that the deregulation of prices is very important, because foreign investors will not come as long as the state determines prices based on their social, rather than economic, function in mind.
Parivodic pointed out the importance of attracting foreign partners through foreign investment and not through speculative capital, and added that state monopoly over immovable property should be removed and land owned by the city meant for construction sites be privatised.
According to Parivodic, that land should be sold at a price that is half of what it is presently leased at.
He also said that the framework of laws concerning the business of multinational companies should be liberalised so that they do not put their investments elsewhere.
He said that the claims that the worst thing is when a state monopoly becomes private are true, which should be taken into account in the course of privatisation. Parivodic said that the deregulation of prices is very important, because foreign investors will not come as long as the state determines prices based on their social, rather than economic, function in mind.
Parivodic pointed out the importance of attracting foreign partners through foreign investment and not through speculative capital, and added that state monopoly over immovable property should be removed and land owned by the city meant for construction sites be privatised.
According to Parivodic, that land should be sold at a price that is half of what it is presently leased at.
He also said that the framework of laws concerning the business of multinational companies should be liberalised so that they do not put their investments elsewhere.
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