Serbia's political system continued to be characterised by the dominance of one political party – the Serbian Progressive Party (SNS) – on the national and provincial levels, and in most local government units, the latest report by BTI Transformation Index published on Thursday. Pročitaj više

„In 2020, parliamentary, provincial and local elections were held, despite the high risk posed by the COVID-19 pandemic and with previous election irregularities continuing to echo. Due to the main opposition parties’ boycott of the election, for the first time in its democratic history, Serbia has a parliament with no real opposition, which seriously undermines democracy and political dialogue,“ the report said.

It added that the „Parliamentary oversight over the executive remains limited, weakening the democratic accountability of the executive.

„This was particularly obvious during the outbreak of the COVID-19 pandemic when the balance of power shifted further toward the government. The parliament’s jurisdiction and practical ability to scrutinise the actions of the government during the state of emergency was seriously undermined, in particular with regard to overseeing the emergency measures introduced during the pandemic. The status of several independent bodies such as the ombudsman and the commissioner for information of public importance and personal data continued to deteriorate, limiting their public impact.“

The BTI report also looked at the minority rights in Serbia, saying that in general, they „are respected in accordance with the constitution, which defines Serbia as a multi-cultural country, but warned that „media independence and pluralism continue to face serious and increasing challenges. The judiciary is not free of political influence and is further plagued by inefficiency, nepotism and corruption. Corrupt practices provide space for wide clientelistic networks, which are used to obtain or remain in power through elections. The judiciary and the Prosecutor’s Office are under the influence of the executive, and many corruption scandals escape investigation and litigation.“

On the economic side, the report said that „unemployment remains high, with a significant number of people active in the shadow economy and vulnerable jobs. Income inequality is high, and almost a quarter of people are at risk of poverty and social exclusion; 7 percent of the population live in absolute poverty.“

„Although the government has introduced several important economic and fiscal reforms since 2014, slow economic growth is a serious problem for society, with incomes failing to converge to the EU average.
The public sector remains bloated, lacks accountability and is inefficient, while the quality of public services is low. While the overall business environment is good, SOEs remain under tight political control, and the government retains a significant presence in the economy. Privatisation continued modestly, with the selling of the third-largest bank in the country (the Komercijalna bank) and several other smaller companies. Public finances were in good shape prior to the COVID-19 pandemic, allowing the government to implement economy-wide measures to tackle the resulting recession. The level of public debt significantly increased in 2020 but is expected to remain below 60 percent over the coming years. The economy contracted 1.5 percent during 2020, a much better result than previously expected due to the measures introduced by the government and the structure of the economy. Rapid recovery is expected.“

The BTI report also looked at the Kosovo and Western Balkans issues, recalling that „the precise boundaries of the territory over which the Serbian state exercises jurisdiction continue to be disputed, since the status of Kosovo is yet to be resolved. Relations with neighbouring Western Balkan countries did not improve significantly in 2019 and 2020, primarily due to the political statements and actions of certain state officials. EU accession remains the country’s main strategic goal, but the process has significantly decelerated, with only two negotiation chapters opened in 2019, and none opened in 2020.“