The market does not function independently of the political system. When two different models of institutional development of states that had an armed conflict over territory in the recent past collide, one of which does not recognize the right of the other to exist, their unresolved conflict inevitably reflects on economic cooperation.<\/p>\n\n\n\n
A democratic system creates the institutional framework in which the market functions, and the rule of law, which regulates the rules of the democratic system and the free market, is the bridge between those two orders.<\/p>\n\n\n\n
Economic relations between Serbia and Kosovo precisely confirm this rule. When there is no political will for institutions to provide a stable and predictable framework for cooperation, the market ceases to function according to its own logic and becomes an instrument of political conflict. In such circumstances, the economy, which could have been a factor of connection, becomes yet another arena of competition.<\/p>\n\n\n\n
The imposition of tariffs of 100% in 2018 showed how quickly a political conflict can disrupt market flows. Instead of the economy mitigating political tensions, it became a means of deepening them. <\/p>\n\n\n\n
The consequences of that situation were:<\/p>\n\n\n\n
\u2013 drop in trade exchange,<\/p>\n\n\n\n
- loss of predictability for the economy,<\/p>\n\n\n\n
\u2013 increase in costs<\/p>\n\n\n\n
- drop in investor confidence and turning to other countries in the region<\/p>\n\n\n\n
The only benefit from the situation is reaped by the shadow economy and its main protagonists - criminals from northern Kosovo, under the control of the regime in Belgrade. The example of Serbia and Kosovo shows that sustainable economic cooperation does not depend solely on market interests, but above all on the political will needed to create institutions capable of keeping political conflicts out of economic flows.<\/p>\n\n\n\n
Author: Dejan Novakovi\u0107<\/p>","protected":false},"excerpt":{"rendered":"
Tr\u017ei\u0161te ne funkcioni\u0161e nezavisno od politi\u010dkog sistema. Kada se suo\u010de dva razli\u010dita modela institucionalnog razvoja dr\u017eava koje su u bliskoj pro\u0161losti imale i oru\u017eani sukob oko teritiorije, od kojih jedna ne priznaje pravo postojanja drugoj, njihov nere\u0161eni konflikt se neminovno reflektuje na ekonomsku saradnju. Demokratsko ure\u0111enje stvara institucionalni okvir u kojem tr\u017ei\u0161te funkcioni\u0161e, a vladavina […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1145","post","type-post","status-publish","format-standard","hentry","category-blog-vesti"],"yoast_head":"\n