The importance of the rule of law for the improvement of business environment in Serbia

• Main Author: Golubović Nataša L.
• Format: Article
• Language: English
• Published: University of Novi Sad, Faculty of Law 2019-01-01
• Series: Zbornik Radova: Pravni Fakultet u Novom Sadu
• Subjects: rule of law; institutions; business environment; investments; serbia
• Online Access: https://scindeks-clanci.ceon.rs/data/pdf/0550-2179/2019/0550-21791901059G.pdf

In the global economy, where countries compete for foreign investment, it is very important to build an institutional framework that will provide favourable environment for investment. Strengthening the rule of law contributes to a more favorable business environment as it creates a climate of stability and predictability, where business risks can be rationally assessed. Serbia made certain progress in the sphere of the rule of law, but the situation in this area can not be described as satisfactory. Improving the rule of law would contribute to the improvement of the business environment, which would ensure the comparative advantage of the domestic economy in the world market and compensate for other disadvatages in the area of attracting investment. Bearing in mind the importance of the rule of law for improving the business environment, the aim of the work is to analyze the achieved results in the area of improving the rule of law in Serbia and identify key weaknesses in this field. The analysis of the rule of law is based on the data of the World Justice Project on the quality of the rule of law, as well as other indicators that assess the ease of doing business, degree of competitiveness, quality of governance and degree of economic freedom and the degree of development of democracy, whose primary goal is not to measure the rule of law, but nevertheless contain some indicators of the rule of law. The results of the analysis should point to the achieved results in the field of the rule of law in Serbia, as a basis for identifying key weaknesses in this sphere and areas in which the deepening of the reforms would contribute to the improvement of the business environment.