Income inequality in Serbia is significant, experts say

Income inequality in Serbia is significant, experts say

Income inequality in Serbia is significant, experts say Izvor: N1

Inequality between the poor and the rich in Serbia is more visible than in any other country of the region, and is also significantly higher than in the European Union countries, showed a research on the income equality in Serbia, conducted by the Belgrade Faculty of Economics professors.

Commenting on the topic, Public Policy Research Centre Executive Manager Tanja Jakobi explained for N1 that, after going through the 1990s war, sanctions and hyperinflation, Serbia's economic growth after 2000 was not followed by the employment rate increase. Above all, the country was also hit by the global economic crisis.

Jelena Zarkovic-Rakic, one of the authors of the study, said that inequality in Macedonia or Bosnia and Herzegovina is not significantly lower than in Serbia but that the difference in comparison with Slovenia and Croatia is huge. According to her, the reason for that lies in the policies that those countries chose after gaining their independence status.

“Both Slovenia and Croatia chose a modern, progressive tax system, within which the more you earn the more you give to the country. We chose a single tax rate for everyone. We said back then this could help us to be more competitive but it was not crucial for investors,” said Zarkovic-Rakic.

She pointed out that the employment rate started to grow in 2012 but only in the low-paid jobs' sector.

Jakobi deemed that the problem was also in the heritage of bad educational structure.

“We have many workers who lost their jobs during the privatization and they had no possibility to re-qualify or find a new job- We have an education system which educates the citizens to be registered with the employment bureau,” Jakobi concluded.

According to her, the opening of the low-paid jobs only increases the inequality, as the children from these families are unable to achieve better results in school and advance in that sense.

Speaking of the minimum wage, Zarkovic-Rakic noted that a salary of 20,000 Serbian Dinars (RSD) (some EUR 169) is not sufficient for the living but is huge for the employer who pays taxes and contributions.

“The problem lies in taxes and contributions. The new finance minister announced that contributions may reduce. That is a delicate matter because they (contributions) are important for the budget. (…) Our minimum wage is high, compared to the average wage, although you cannot live with RSD 20,000 per month,” Zarkovic-Rakic concluded.

Both Jakobi and Zarkovic-Rakic noted that social insignificant amounts are earmarked for social welfare – only 0.3 percent of the GDP – which is double less than in Slovenia. They find it positive that the social welfare was not reduced during the crisis period but they think it is not good it is still very low.

(EUR 1 = RSD 118.21)

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Mbm

There is no social security income in Serbia, and such model is not to be found among serious and.organised societies. Such situation is serious breach and abuse of human rights, constitutional rights in Serbia, serious breach of rule of law, and represents a thretie for human which is contrary to legal requirements, maintained. Second problem is absence of decent jobs, caused with ban on employment imposed contrary to legal corpus in force in this country which significantly provokes the long term unemployment and income loss for qualified and educated people. The differences between earnings which are ubnormally created in this country can not be justified and represent a product of missconduct and abuse.of.law. International monitoring commities, like from EU, on behalf of EC, NGO sector, USAID and UN rep offices lack with local personal capable to inforce the.seizure in poverty spread and development and implementarion of rule of law and social sexurity income, and further.development of healthy proces of employment and hard reducing of the rate of unemployed,income.deprived and.endangered to survive people. The.extreme high sallaries of ministers, parlamentary representatives, local governing and parties, are not justified and rule towards further financial.debt increase (public debt). The.last, but.not least is that sc. Rich class in minority, has developed.from forbiden and.punishable acts, and.white collar crime. Honest and educated have no place to work in and earn decent sallary. That is the poor ongoing in this country, that seams to be seriously and in lack of basic knowledge on how.to govern in democracy and reasonavle manner with diligent care for.people, devostated. The aim of.eu an ec is not this state.of condition. An urgent and serious correction of said is.to be done, in fare manner and by.implementing concrete healing.aid.measures that do make changes much rather than maintenance of this poor, twisted up state of condition with local.acters on the scene who further dammage. You.are kindly asked to publish this comment, and let us all be in reasonable condition of employment and security, which Europe does need.

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