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Economist Nebojsa Katic said that during the coronavirus pandemic, there is an “unprecedented” global redistribution of wealth in the world, the greatest victims of which will be the poorest population of developed countries, as well as poor countries “that are not yet aware of what awaits them “.
Speaking to the union portal Nezavisnost, Katic said that he had maintained his position for seven months that the pandemic was “a godsend to the ruling Western political and economic structures” and that, as time passed, it was “increasingly more certain that he was not wrong. ” .
“There is an unprecedented global redistribution of wealth taking place before our eyes. The biggest victims will be the poorest sectors of the population of developed countries, as well as poor countries that are not yet aware of what awaits them. this crisis in debt to their creditors. ” “They will have to further reduce the already miserable public spending, and they will sell everything they have left to get rid of the debt. It seems to me that there is still no awareness of that in Serbia,” he said.
Speaking of various transitional economic policies, Katic noted that “the active role of the state was key in all successful development models, both in the West and in the East”, but that in Serbia it is “hidden from the public” because this “empirical In fact, it denies the prevailing neoliberal doctrine in whose promotion arose the careers of the most influential economists, who were, even economically, encouraged from outside ”.
“Development champions protect their industry”
“All successful countries had capable governments that were not afraid to experiment. The champions of development did not care too much about the free market, they protected their industry, they followed an undervalued currency policy, they used capital control mechanisms. In the first phase The development sector began the policy of import substitution, and then they focused on stimulating exports and breaking into foreign markets, integrating themselves into world economic chains ”, he added.
He said those countries relied on domestic savings rather than foreign investment, and in rapid development phases they sacrificed personal consumption by investing in infrastructure, education and the health system.
“In a word, the champions of development did the opposite of what the European transition countries and Serbia are doing,” he stressed.
Katic considers wrong the thesis that high taxes are detrimental to the economy, discourage work and create new value. He added that it is the “job” of employers to constantly complain about high taxes, which is a routine groan and a form of pressure on the government.
“If the thesis about high taxes that demotivate work were correct, then all of Scandinavia, or Germany or France, for example, would be failed countries where nobody would do anything. Again, empiricism says the opposite of what neoliberal theory tries to promote. “, He said. is he.
Read more about kovid-19 and the consequences of the pandemic in the country and the world on the page. Coronavirus.
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