28 mar

Ivan Radenković, FOREIGN DIRECT INVESTMENTS IN SERBIA

Finally, we have the first research on foreign direct investments (FDIs) in Serbia from the left-wing perspective – Rosa Luxemburg Stiftung's publication

Ivan Radenković analyzes the macroeconomic position of Serbia in Southeast Europe and the socio-economic consequences of Serbia’s integration into transnational production circuits. FDIs have a very preponderant role in the economy, especially in developing and undeveloped countries (in favor of developed countries) where they are still recommended as a magic wand for economic development and growth. But if we pay attention to the actual impact of FDIs on Serbia’s balance of payments, employment level, overall monetary stability and – indirectly – on rising external debt, we can see that the FDIs are means of maintaining international inequality and a greater impoverishment of Serbia. The author also demystifies the mechanism of GDP and shows that the reality is quite different from statistical acrobatics. Contrary to the hegemonic (and irksome) narrative, which states that FDIs will lead to growth and socio-economic development in developing countries, a big chunk of capital invested by transnational companies is constantly returning to the developed world in the form of increased profits. Working classes in the developed world are experiencing wage stagnation due to the extensive exporting of capital, while working classes from undeveloped and developing countries are experiencing super-exploitation, receiving extremely low wages. Serbia is by no means excluded from this global trend in exploitation. Following this, the research questions the narrative presented by the Serbian government and international financial and trade institutions, in contrast arguing that FDIs prove to be a mechanism for the long-term entrenchment of economic dependency reserved for poor countries.

Ivan Radenković is a theoretician and activist. He received his MA degree in philosophy (subdiscipline: epistemology) at the University of Novi Sad. His current interests are centred on Marxism, critique of political economy, the history of economic ideas, class theory, industrial politics, trade union history and pension systems. He is a member of the collective Gerusija and on the editorial board of the journal for theoretical practices named Stvar. He has published the research Pension Systems in the Context of Social Formation’s Transformation – from the Kingdom of Yugoslavia until now for the publication Transition’s Balance Sheet: a Contribution to the Analysis of the Restoration of Capitalism in Serbia (publisher: Centre for the Politics of Emancipation, Belgrade, 2015). He also translates from English and Slovenian into Serbian, and composes and produces music.

 

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