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The analyses of the process of transition in Serbia, made by some international institutions & organizations, have shown that the fundamental problems in our economy are ineffective institutions & necessity of overall infrastructure changes. The author considers that any significant economic growth in Serbia in the future is unrealistic in the unfavorable macro- & micro economic business environment. She emphasizes the necessity to implement institutional & infrastructure reforms, which should be the first postulate for growth of productivity & competitiveness of enterprises & national economy. Tables, References. Adapted from the source document.

The analyses of the process of transition in Serbia, made by some international institutions and organisations, have shown that the fundamental problems in our economy are ineffective institutions and necessity of overall infrastructure changes. The author considers that any significant economic growth in Serbia in the future is unrealistic in the unfavourable macro- and microeconomic business environment. She emphasises the necessity to implement institutional and infrastructure reforms, which should be the first postulate for growth of productivity and competitiveness of enterprises and national economy.

True competitiveness is measured by productivity. Productivity supports high wages, a strong currency, and attractive returns to capital and with them a high standard of living. The world economy is not a zero-sum game. Many nations can improve their prosperity if they can improve productivity. The central challenge in economic development is how to create the conditions for rapid and sustained productivity growth.

Clusters are basic postulate for achieve competitiveness in livestock production in Serbia, for increase export of meat and for subsisted farmers in small agricultural holding, especially in environment of: 1) lack of competitiveness considerations; 2) insufficient public support for livestock production; 3) more liberal agricultural trade with EU; 4) significant demand for baby beef in world market. In the same time, with financial and institutional support of government and public sector, clusters in livestock production has a huge strength for employ people, utilised natural resources and realization of projection aim of agrarian policy in this production. .