Financial Systems Reforms in Western Balkans Countries

Financial Systems Reforms in Western Balkans Countries

Sofija Adžić (University of Novi Sad, Serbia)
Copyright: © 2019 |Pages: 20
DOI: 10.4018/978-1-5225-7760-7.ch013

Abstract

Tax system and tax policy today are becoming the most important instruments of national economic policy. Globalization process is objective in nature and is also inherent in market economy, whereas the neoliberal model of globalization is constantly getting more popular in both developed and developing countries. While developing countries in this regard are concentrating mostly on a multitude of potential reforms and resolving their numerous economic and social problems which are getting only more complicated, the interest of developed countries concerns mostly newest innovative technological trends and their application in a specific economic context. That is, in order to provide better conditions for full convergence of socioeconomic systems with higher rates of economic growth reforms, tax systems and tax policies are needed to reduce the barriers to free and global movement of goods, services, capital, and manpower.
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Development Performance Of The Western Balkans’ Economies

In the course of economic reforms and establishing newer development policies in the Balkans, these countries must bear in mind their many developmental comparative advantages in terms of attracting foreign capital, while not allowing their economy to be placed in a strongly dependent, subordinate position in relation to close developed economies. The most recent economic crisis has emphasized the need to outline/reformulate newer competitive economic advantages, some of them posing quite a serious challenge for the institutions within the European Union. Belief in the long-term benefits of free movement of goods and services, people and money is countered by the short-term challenges of protectionism without any obvious positive effect. The sense of solidarity within Europe, between the East and the West, the rich and the poor, the old and the new Europe must be constantly re-examined and adequately aligned with the growing socioeconomic needs and challenges.

Key Terms in this Chapter

Innovation: Is a new idea, or a more effective device or process. Innovation can be viewed as the application of better solutions that meet new requirements, unarticulated needs, or in some cases, the already existing market needs. This is accomplished through more effective products, processes, services, technologies, or business models that are readily available to markets, governments and the society overall.

Tax System: Is a set of tax regulations, institutes and norms, bound in a unique mechanism for the purposes of achieving a certain tax policy. The tax system includes a large number of tax forms that differ in each system. This system is a set of institutes and instruments available to tax authorities for achieving certain fiscal, economic, social and political goals within the economic system.

Developmental Performance: Within the political system, decisions made are often crucial for further development of the economy, practically all economic and systemic solutions with the control over their implementation. Numerous analyses have shown that of all non-economic factors affecting the developmental performance of any economic system, the most important ones are those originally coming from the political system.

Fiscal System: Is all forms of public revenues imposed by the state (i.e., by its public-law collectives). Fiscal policy, being part of general economic policy, is a set of fiscal instruments, public expenditure instruments and revenues used to achieve the goals of economic policy.

Economic Development: Is a complex economic flow by which one country gradually liberates it from own economic underdevelopment and poverty, thus reaching higher developmental levels. This development consists of economic growth and changes in the composition of the economy.

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