I believe that any socially meaningful writing requires both emotion and style. Style can take many forms, populist or egocentric, engaging or tedious, but emotions must be genuine. Genuine emotions mean writing about something that excites, disturbs, irritates, or amuses you, something through which you find relief and convey a message. Without emotion, writing becomes commissioned work, serving the client rather than society.
Lately, I have been feeling more and more irritated, which meets the need for emotion. What irritates me is the way industrial policy in Serbia is interpreted in public discourse, and by whom. As a result, I am writing this reflection. As for style, the second requirement of socially useful writing, I leave that for you to judge.
To amplify the emotion and add a touch of humor to the general gloom, I keep hearing the words of a frequent guest on a well-known talk show: “We look each other in the eye and lie.” That is exactly what is happening in the parade of industrial policy we see and hear in the public space – a parade in which I myself play a small role as an economist-useful idiot. We look each other in the eye and lie when discussing and analyzing the failure and de facto non-existence of industrial policy in Serbia, which de jure exists in the form of the Industrial Policy Strategy of the Republic of Serbia 2021–2030. This parade includes economists, journalists, professors, dominant interest groups, the Ministry of Economy, and policymakers. And it all unfolds within a broader context.
The Serbian Economy of the Yura Era
It is now clear and cannot be denied that Serbia’s growth model, based on foreign direct investment and later supported by high public investment, is not sustainable in the long term. Its weaknesses became visible in 2025, when foreign direct investment decreased due to weak economic performance in leading European economies and greater uncertainty, which had a negative effect on GDP growth.
IThis lack of sustainability can also be seen in the natural loss of jobs in subsidized companies, as workers in Serbia are no longer relatively cheap. This is happening in sectors that require a lot of labor and create low value, such as the production of car components. A clear example of this process is the arrival and departure of cable production in Yura’s factory in Leskovac.
The Industrial Policy Strategy of the Republic of Serbia was adopted in 2020, covering the period until 2030.
The fact that this problem exists and that current economic and industrial policies do not offer a solution is also indirectly confirmed by the Ministry of Economy in its annual report on the implementation of the industrial strategy. The report clearly states that the share of industry in Serbia’s total gross value added is decreasing from 26.4% in 2015 to 21.5% in 2024.
In simple terms, industry is contributing less and less to overall economic growth each year. This is not surprising, since the official industrial policy strategy sees foreign direct investment as a key strength.
Just think of the example of Yura in Leskovac and decide for yourself whether it really represents a strength.
Economists as Useful Idiots in the Media
TThis issue has been discussed in professional media over the last year or two, because it has become more visible. Therefore, questions about censorship or self-censorship on this topic are not correct. Of course, it is discussed only as much as today’s media in Serbia and in the world, can cover complex topics without becoming too boring for the audience.
An example of regular coverage of the weak development of the domestic economy and small and medium businesses and the lack of solutions from industrial policy is the morning program of the public broadcaster.
“Regular” here means that the topic is discussed often, with economists, professors, and relevant organizations invited as guests. It was my irritation with one of these appearances that gave me the emotional reason to write this text. From a journalistic point of view, almost everything was done well. The guest was chosen from academia and economics. But the problem appears when the journalist does not get good answers.
The journalist asks many follow-up questions, uses good body language, and gives the guest space to explain, but instead of answers, we only hear general phrases. The time ends, the program finishes, and the viewers get nothing except confirmation that the problem exists and some general statements.
Escape from Yura Park
What decision-makers, academics, economists, and media all have in common when talking about this topic is that we all look each other in the eye and lie. Journalists act like they are satisfied with the answers even when they are not. Professors and economists act like they are important because they are on the media, even though they have no real policy proposals. And the Ministry of Economy acts like the Industrial Policy Strategy is a valid and effective document, while ignoring the declining industrial share in the economy.
The first step to escape the “Yura Park” we are trapped in is to look each other in the eye and stop lying. We need to leave big strategies aside and admit that there is not enough knowledge about industrial policy in Serbia. This topic has been ignored for more than twenty years. We need to start training young professionals who will work on industrial policy at a technical and practical level, and who, after some years, will have the experience and strategic vision needed for real change.
Author: Author: Nenad Jevtović, BSc in Economics, Institute for Development and Innovation
