Environmental Performance Reviews: Republic of Serbia

Second review

image of Environmental Performance Reviews: Republic of Serbia

This second Review takes stock of the progress made by Serbia in the management of its environment since the country was first reviewed in 2002, when it was part of Yugoslavia. While looking closely at the implementation of the recommendations of the first Review, the report also covers seven issues of importance to Serbia concerning policymaking, planning and implementation, the financing of environmental policies and projects, the integration of environmental concerns into economic sectors, and the promotion of sustainable development.



Economic instruments for environmental protection

Due to sustained robust growth, the overall economic context for the conduct of environmental policy has improved over the past years (see the Introduction). As regards structural reforms, a major challenge remains the privatization of large State-owned enterprises, an area where progress has been slower than expected. Although there has been progress in price liberalization, the share of administered and regulated prices in the consumer price index (CPI) is still quite high. These include notably prices for heating and electricity, coal and gas, and oil derivatives. In 2005, the central government also decided to take control of tariff-setting in the water and wastewater sector (see section 4.4). Despite improving living standards, there are still a large proportion of people with very low incomes, which is reflected in the widespread use of firewood and the high and rising levels of illegal logging.


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