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Rethinking Privatization in Serbia

Serbia has a rather unique environment for the privatization of its state-owned firms. On the one hand, unlike many transition economies, it had experience with mixed forms of ownership prior to the 1990s. On the other hand, its isolation and policy stagnation in the 1990s left it somewhat behind the other transition economies in terms of privatization. Thus, Serbia now has the opportunity to learn from the experiences of other transition economies. This article examines what those lessons should be and how they should be applied to Serbian circumstances. In the light of this analysis, Serbian privatization policies are critically evaluated, and a prognosis for future developments is proffered.