The Stability Pact’s Investment Compact for South East Europe has published a report on planned policy reform in the Federal Republic of Yugoslavia: Serbia. The report reveals the achievements that have been made by the new government since the end of 2000 and its ambitious programme of policy and institutional reform in the short and medium terms. This framework of reform will drive Serbia’s push towards a vibrant market economy and increased private investment.

The Monitoring Instrument of Federal Republic of Yugoslavia: Serbia supplements the cross-regional report issued in August, covering seven South Eastern European countries (Albania, Bosnia-Herzegovina, Bulgaria, Croatia, the FYR of Macedonia, FRY/Montenegro, and Romania), entitled Progress in Policy Reform in South East Europe - Monitoring Instruments. It follows the same format, including a statement of policy priorities and objectives and a comprehensive set of planned actions, responsible ministries/agencies, benchmarks and target dates.

This overview of the reform process was prepared by the Ministry of International Economic Relations in co-ordination with the Country Economic Team, which includes representatives of relevant ministries and agencies, non-governmental organisations, international organisations and financial institutions, and the private sector.

The Government of Serbia has set approximately 60 broad policy objectives designed to improve the conditions for investment and private sector activity. To attain these goals, Serbia proposes over 130 individual policy measures, half of which involve legislative reform, such as the drafting of a new law regulating foreign investments and revision of the current law governing concessions.

Over one third of the policy measures have a target date of end 2001, with more expected to be completed in early 2002. This short time frame reflects the urgency of the Serbian approach to the reform agenda. The next edition of the cross-regional Monitoring Instruments (early 2002) should determine whether the government has managed to reach these ambitious targets aimed at building a more favourable investment climate in Serbia.

The report can be accessed on the Stability Pact Website (www.stabilitypact.org , under Working Table II, Investment Compact) or on the Investment Compact Website (www.investmentcompact.org). It is also available on request from the OECD (contact kimberly.pagels@oecd.org).