Think through strategy: New vision for industrialization of economy and modernization of society

Abstract

the other which assumes that the state is the only master. In our previous articles [2], [3], and [4] we opt for heterodox approach which realigns development model and economic policy platform based on conceptually more complex approach of new structural economics. Industrial policy is a crucial element of the new wisdom. In this article, we concentrate on the strategy for economic growth in Serbia supporting previous choices. SažetakU strategijskom razmišljanju o privredi Srbije postoje dva povezana pitanja. Šta ona trenutno predstavlja? Šta bi mogla da bude u budućnosti? Povodom prvog pitanja, odgovor je da je Srbija mikroskopska ekonomija u dugoj regresiji, kasni sledbenik u razvoju koji beleži zaostajanje u tranziciji prema putanji višeg nivoa razvoja. Ocena strateške pozicije Srbije govori o prisustvu duge liste indikatora ranjivosti. Postoji opasna kombinacija strukturnih neravnoteža i geopolitičkog zaglavljivanja. U državi koja je zavisna od uvoza i kredita, visoka finansijalizacija višestruko narušava stanje u ekonomiji.U poslednjih dvadeset pet godina Srbija je izgubila skoro 1/10 svog stanovništva i skoro 1/6 svoje teritorije bogate značajnim prirodnim nasleđem. Autput u stalnim cenama u 2014. je za skoro 1/3 manji u odnosu na 1989. godinu.Prethodne činjenice otvaraju suštinsko pitanje: zašto se ljudi u dugom periodu ponašaju u suprotnosti sa svojim interesima? Odgovor je jednostavan, pogrešan sistem. Njega ne treba popravljati. Njega treba promeniti. To nije jednostavan zadatak zbog toga što u vreme diskontinuiteta dobra strategija i efikasan model rasta predstavljaju pokretne mete. U AbstractIn strategizing about Serbia's economy, there are two related questions. Where is it now? What it could be in the future? As far as the answer to the first question is concerned, Serbia is microscopic economy in long regression, late developer with delay in transition toward the road to higher development. Strategic audit of Serbia's position reveals long list of vulnerability indicators. Dangerous mix of structural imbalances and geopolitical stuck in the middle exists. In import and debt dependent country, high financialization undermines its economy in many ways.In the last 25 years, Serbia lost roughly 1/10 of population and approximately 1/6 of its territory rich with significant natural resource endowment. Output in constant prices in 2014 is almost 1/3 lower in comparison with 1989 level.The previous facts raise fundamental question: Why do people in the long period act against their own interest? The answer is simple: wrong system. We do not want to fix it up. We must change it. It is not easy because in the age of discontinuity great strategy and efficient model of economic growth are moving targets. In the new context the core competence for each national economy, small or large, early developer or late developer, stagnating or fast-growing, is going to be strategic flexibility. In thinking through strategy, the key question is not what is right? But, what would have to be right? In the new context, t...