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Fakultet za trgovinu i Bankarstvo, Alfa Univerzitet , Beograd , Serbia
In the last eighty years, the world changed, but some of the things remained the same. In the basis of all economic crises, from the global one from 1929 or 2008, until the regional one (Latin America, south-east Asia, Eastern Europe), the economical politics based on the ideas and misinterpretations from the end of the 18th century could be recognised. These bases make the belief into an absolute efficiency of self-regulated laissez-fairemarket. It is difficult to find an idea that facing with the reality always losses, being constantly reflected and reappeared into a new incarnation. If the facts do not suit the theory, then it is worse for the facts-this is a statement by Hegel, and it is amodus operandiof neoliberalism in the best way, and the latter laissez-faireincarnation. The aim of the paper is to emphasise onto a disastrous influence of the system of neoliberalism, based on a comparative analyse of economic indicators and recommendation of the Washington Consensus onto the economies of the Republic of Serbia and South-Eastern Europe. The issues being faced with in the region countries are defined as elements of “Eastern Crises”. The essence of the “Eastern Crises” is similar elsewhere. The entire region has made a complete liberalisation of financial flows, and left its financial destiny to foreign banks (pursuant to the recommendations of the Washington Consensus). Plenty of foreign currencies caused an overestimation of the local currencies exchange rates, and an artificial increase of purchase power. The highest number of transition countries has wasted their credits, and stayed with vulnerable economies, and a huge burden of debts distributed to economy, citizens and budgets. The economic reality of Serbia, unfortunately, can be served as a model supporting the theses on devastating influence of neoliberalism onto the economies of small and undeveloped countries. Serbia is a country of ruined infrastructure, tragically low employment, overrate spending, increasing debts and terrible emigrations. It is clear that the economic policy being led in Serbia, for a decade, has been based on neoliberalism, and it has experienced a complete fiasco. However, there is a worrying fact that a torch of neoliberalism in Serbia still burns proudly, as the world has not come to the edge on financial disaster, according to metaphysical constructions (quoted by Kens).
Neoliberalism, Washington Consensus, Eastern crises, Republic of Serbia. JEL classification:F02, F34, F36.
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