In 2003, the Belgrade-based Center for Liberal-Democratic Studies (CLDS) partnered with CIPE to survey the state of corporate governance in Serbia. At that time, the predominant form of ownership was socialist, with all its associated inefficiencies and governance challenges. Management usually reported to the state/ruling party, employees, or self-reported, and the private sector had only begun to take root with onset of privatization. Whether public or private, large or small, firms lacked formal structures for ensuring accountability on a daily basis.
In 2008, CLDS conducted another survey to assess progress and to investigate what else could be done in this important area of the country’s transition. This Feature Service article takes a closer look at the survey results and gathers lessons learned. In the last five years, Serbia has seen the privatization of state-owned enterprises, introduction of regulatory innovations, and passage of new laws on corporate governance and business operations. Yet, firm-level implementation and understanding of these new laws remains incomplete and larger institutional and governance problems persist.
Like the 2003 survey, the 2008 survey also helped identify concrete reform recommendations to move corporate governance reform in Serbia to the next level – beyond simply introducing relevant corporate governance laws and structures and instead focuses on enforcement and compliance.
Article at a Glance
- Five years of corporate governance reforms in Serbia reveal a mixed picture of progress and persistent shortcomings.
- The Center for Liberal-Democratic Studies (CLDS) has been working with the Serbian private sector to gauge the current state of corporate governance and produce concrete reform recommendations.
- Corporate governance reforms at the company level can only succeed if they are a part of a larger systemic transformation that builds the institutions of good governance and market economy.
Published Date: July 17, 2009