INDUSTRIAL POLICY OF SERBIA -new approach and goals- MINISTRY OF ECONOMY

Transcription

1 INDUSTRIAL POLICY OF SERBIA -new approach and goals- MINISTRY OF ECONOMY

2 Conceptual difference Industrial policy of the EU Industrial policy = Manufacturing industry Industrial policy of Republic of Serbia Industrial policy Manufacturing industry 2

3 Strategic documents Strategy and policy of industrial development of the Republic or Serbia 2011 to June 2011 Action plan for implementation of Strategy and policy of industrial development of the Republic or Serbia 2011 to 2020 end of 2011 Changes and amendments to the Action plan for implementation of the Strategy July 2013

4 Strategy and policy of industrial development of the Republic of Serbia 2011 to 2020 Strategic development goal of the Republic of Serbia is sustainable and dynamic growth of industry which can fit in the unified market of the EU and resist the competitive pressure of its members The Strategy defines basic goals and strategic directions of industrial growth in Serbia in attempt to build new competitive industrial structures Investments and export of the processing industry are central to the Strategy, as the key generators of GDP growth for the next decade New model of industrial growth for the period is export oriented and implies: Dinamic investment growth, High rates of goods export, Growth of industrial employment. 4

5 Priority sectors in creation of new industrial structure Food industry Industry of means of transport Information communication technologies Metal industry 5

6 Industrial policy of Serbia goals Dinamic and sustainable industrial growth and development Proactive role of the state institutional building Improvement of the investment environment Competitiveness strengthening Faster development of entrepreneurship Increasing and restructuring export Reform of education system according to the needs of economy Active and dinamic cooperation between science and industry Innovation encouraging Reform of labour market and employment policy Balance between stabilising, developmental and social role of the state Development of regional industrial centres and reginal business infrastructure Energetic efficiency improvement Environment protection 6

7 Industrial policy of Serbia Environment protection Corporate management Investment encuraging Business environment improvement Education system reform Energetic efficiency Industrial policy Technological development Regional development Innovations Employment Information communication technologies Small/medium enterprise development Privatisation and restructuring 7

8 Industrial policy implementation Strategy and policy of industrial growth represents the general direction of development of the industry in Serbia Importance of determining the optimum implementation structure Key precondition is establishment of flexible model of strategic cooperation between the ministries, as well as between the private and public sector in order to enable exchange of information on measures of industrial policy Proces of continuous gathering of data and information for measuring the Strategy s success Timely notification of responsible institutions on effects of the success or failure of undertaken activities All existing policies, measures and activities will be continuously and systematically corrected and improved in order to achieve competitiveness of Serbian industry, as well as because of syhcronisation with requests and obligations implied by the EU candidate status 8

9 Serbian industry analysis STRENGTHS Achieved macroeconomic stability, in conditions of relative price stability Developed banking system Geographical closeness of main markets of EU member countries Existance of the Agreement on Stabilisation and Accession with the EU, as well as other bilateral and regional trade agreements Affordable traffic position Natural resources and conditions for production in agriculture and food industry Competitive labour force price WEAKNESSES Obsolete equipment and technology Low level of fixed investments in equipment and technology modernisation Low level of capacity use Insuficient investment in scientific-research activities Incomplete process of restructuring and privatisation High unemployment with unfavorable structure Low level of energetic efficiency Low level of competitiveness, large share of primary and low-technology products in export Insuficiently efficient process of liquidation and bankruptcy Disbalance between the labour force proffesional profiles and enterprise sector demands * Strategy and policy of industrial development of the Republic or Serbia 2011 to

10 Serbian industry analysis OPPORTUNITIES Development of medium and high-technology areas Improvement of investment and business environment Higher inflow of permanent direct investments greenfield investments Investing in cadres (educated labour force) More efficient legal system aimed at protection of proprietory rights and contracts Development of business incubators, cluster, technological parks, free production and export zones Synchronisation of industry with EU standards Stadardisation and branding of products aimed at stregthening the country s export potential Potential for payment inflow from diaspora Involvement of Serbia in international transport and energy corridors THREATS Slowing down of further structural reforms Slow recovery of global and European economy Lack of funds for investments Regional differences when it comes to economic development Insufficient incentives for development of entrepreneurship High use of limited energy resources Low administrative capacities of absorption of money from EU funds Slow process of EU accession * Strategy and policy of industrial development of the Republic or Serbia 2011 to

11 Industrial policy in transition period Industrial policy of Republic of Serbia in the transition period, , was focused on: Privatization and restructuring of the corporate sector; Attracting FDI; Creating a competitive business environment; Strengthening of the entrepreneurship sector; Directing development incentives. The transition model was based on increasing FDI, and the main goal was to reduce unemployment and foreign trade deficit. The main criteria of greenfield subsidies: - Export-oriented production - New workplaces 11

12 Industrial production before and after the global crisis (index 2007=100) Source: Statistical Office 12

13 Share of the industrial production in GVA Non-industrial activities Power, gas, and steam supply Manufacturing industry Mining Source: Statistical Office 13

14 Industrial production - sectors (index 2010=100) Total Mining Manufacturing industry Electricity and gas Source: Statistical Office 14

15 Manufacturing industry production (index 2007=100) Source: Statistical Office 15

16 Manufacturing industry, no. of employees (in 000) Source: Statistical Office 16

17 Labour productivity Year Real productivity growth rate in% 3,4-6,0 5,3-3,5 7,4 Productivity (in 000 RSD) 879,2 895,6 1004,0 1075,8 1245,5 Source: Statistical Office 17

18 The quality of workforce (2012) 0.5% Total economy (total 2,2 mil) 23% 5% 15% 57% * *n/a data for manufacturing sector 18

19 Exports share and the openness of the economy (2012) *GDP = 3,348,689.2 mil RSD (29,601.0 EUR mil) Source: Statistical Office 19

20 Innovation Union Scoreboard The average innovation sector growth in Serbia is 6,8% Summary innovation index for is 0,365 Moderate innovator Indicator Score 2012 Public R&D expenditures (% of GDP) 0.75 Business R&D expenditures (% of GDP) 0.22 SMEs innovating in-house (% of SMEs) Innovative SMEs collaborating with others (% of SMEs) 6.09 Knowledge-intensive services exports as % of total services exports License and patent revenues from abroad as % of GDP

21 Business environment Criteria Position in Position in Position difference Starting a business Dealing with consruction permits No changes Registering property Obtaining credit Protecting investors Enforcing contracts No changes Resolving insolvency Getting eletricity Paying taxes Trading accross border Source: World Bank Doing Business 21

22 Electricity prices for medium sized enterprises All taxes excluded Semestar 1 Semestar 2 Source: Statistical Office 22

23 Business satisfaction with infrastructure Indicator Evaluation Ranking Quality of overall infrastructure 3, Quality of roads 2, Quality of railroad infrastructure 1, Quality of port infrastructure 2, Quality of air transport 3, infrastructure Available airline seat kms/week, 57,9 92. millions Quality of electricity supply 4,8 73. Mobile telephone subscriptions/100 pop. Fixed telephone subscriptions/100 pop. 125, ,3 31. Source: Global Competitiveness Report

24 Financing SMEs and entrepreneurs: Scoreboard for Serbia, (1) 24

25 Financing SMEs and entrepreneurs: Scoreboard for Serbia, (2) Financing SMEs and Entrepreneurs 2013: An OECD Scoreboard 25

26 Business investment in equipment (2012) 21.4% Shares in GDP* 11.0% Gross Fixed Capital Formation Investment in equipment *GDP = 3,348,689.2 mil RSD (29,601.0 EUR mil) Source: Statistical Office 26

27 Industrial production 2014 /2013 Industrial production in the period from January to December 2013 is 5.5% higher compared to the same period in Observed in sectors, in the period from January to December 2013, compared to the same period in 2012, the following fluctuations were registered: Processing industry sector 4.8% growth, Mining sector 5.3% growth and Supply with electric energy, gas, steam and air conditioning sector 8.1% growth. Source: Statistical Office 27

28 Industrial production quarter / quarter Industrial production in Republic of Serbia in March 2014 is 3.8% higher than in March 2013, and compared to 2013 s average it s 1.0% higher. Industrial production in the January-March 2014 period is 2.1% higher compared to the same period in Observed in sectors, in March 2014, compared to the same month in 2013, the following fluctuations were registered: Processing industry sector 6.1% growth, Mining sector 2.6% growth and Supply with electric energy, gas, steam and air conditioning sector 2.4% fall. Source: Statistical Office 28

29 THANK YOU! 29