Corruption costs 1.6% of Serbia’s economy, says Fiscal Council

“The malignancy leads to stagnation, declining competitiveness, increased poverty and national debt,” Dejan Šoškić, a professor at the University of Belgrade’s Faculty of Economics and former central bank governor, stressed in an analysis on the impact of corruption. [Shutterstock/BalkansCat]

Corruption is an elaborate system in Serbia, undercutting institutions and the rule of law and costing at least 1.6% of national GDP, according to the Fiscal Council, Business and finance (Biznis i finansije), reported in its 25 April issue.

“The malignancy leads to stagnation, declining competitiveness, increased poverty and national debt,” Dejan Šoškić, a professor at the University of Belgrade’s Faculty of Economics and former central bank governor, stressed in an analysis on the impact of corruption.

The cost is paid by taxpayers, and all this stifles innovation and devours entrepreneurial energy because it encourages those who are corrupt and not those who possess knowledge, quality and efficiency, Šoškić explained.

“As long as these others go unpunished, corruption will create new corruption and abuses to the detriment of development and encourage honest citizens with quality knowledge to leave the country,” Šoškić added.

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