The role of the Parliament in decision making process concerning priorities: Public spending decrease or stimulating the economy

The Institute of Еconomic Sciences researchers attended the International Conference entitled The role of the Parliament in decision making concerning priorities: Public spending decrease or stimulating the economy, held on 3 March 2012 in the Serbian National Assembly in Belgrade. The Conference represents a meeting of the "Regional Network of Parliament committees for economy and finance of the Western Balkan Countries" established during the Regional Parliamentary Conference held in Belgrade in 2009 with the aim of improving cooperation among parliaments in the Western Balkan region.

The Republic of Serbia National Assembly organizes the Conference in cooperation with the Friedrich Ebert Foundation and the Institute of economic sciences. The host of the Conference was Mrs. Gordana Čomić, Vice-president of the Serbian National Assembly. The participants were members of the Parliament, including presidents of Parliamentary Committees for economy and finance, experts and Parliament advisors, scientists from Western Balkan countries, and international organizations. The main focus of the Conference was to emphasize the role of the Parliamentary Committees for economy and finance in promoting economic reforms, especially in the context of the current financial crisis. Most of the papers were presented and discussed in the framework of the following conference goals:

• Discussion on possibilities for strengthening the capacities of Parliamentary Committees for economy and finance with the aim of achieving a more significant role in the process of economic policy creation.
• Consideration of dilemma: Should public spending decrease or stimulate the economy?
• Discussing economic and political trading barriers in the region.

Prof. Slavica Đukić Dejanović, President of the Republic of Serbia National Assembly, Michael Erke, Ph.D., Director of the Friedrich Ebert Foundation office in Belgrade, Gordana Čomić, Vice-president of the Republic of Serbia National Assembly and prof. Dejan Erić, Director of the Institute of Economic Sciences, opened the Conference.

The Conference comprised three sessions:

First session
STRENGTHENING THE CAPACITIES OF PARLIAMENTARY COMMITTEES FOR ECONOMY AND FINANCE IN ORDER TO INCREASE THEIR ROLE IN THE PROCESS OF CREATING ECONOMIC POLICIES

• Moderator: Gordana Čomić, Vice-president of the Republic of Serbia National Assembly
• Slavica Penev, Senior scientific advisor, Institute of Economic Sciences, Belgrade: presentation of the follow-up paper
• Beriz Belkić, former President of the House of Representatives of Bosnia and Herzegovina Parliamentary Assembly
• Mira Grgić, Vice-president of the House of Representatives of Bosnia and Herzegovina Parliamentary Assembly
• Marjančo Nikolov, President of the Macedonian Parliamentary Committee for finance and budget

Second session
WHETHER TO PRIORITIZE PUBLIC SPENDING DECREASE OR TO STIMULATE THE ECONOMY

• Moderator: Prof. Dr. Dejan Erić, Director, Institute of Economic Sciences, Belgrade
• Fikret Čaušević, Faculty of Economics, Sarajevo
• Aleksandar Damjanović, President of the Parliamentary Committee for the financial system and public spending, Montenegrin Assembly
• Edmond Spaho, President of the Committee for economy and finance, Assembly of the Republic of Albania
• Danijela Martinović, President of the Committee for economic reforms and development, Parliamentary Assembly of Bosnia and Herzegovina
• Branka Ljiljak, Vice-president, Committee for finance, Assembly of the Republic of Serbia

Third session
ECONOMIC AND POLITICAL TRADE BARRIERS IN THE REGION

• Moderator: Michael Ehrke, Ph.D., Director of the Friedrich Ebert Foundation office in Belgrade
• Ahmet Mancelari, Faculty of Economics, Tirana
• Predrag Bjelić, Faculty of Economics, Belgrade
• Igor Radoičić, President of the National Assembly of the Republika Srpska
• Ljubisav Ivanov Singo, President of the Committee for the economy, Parliament of the Republic of Macedonia

It was jointly concluded that there was a need for simultaneous work on decreasing all unnecessary budget expenditures and stimulating economic growth and development. The entire region faces similar problems, notably in public finance and real economy sectors (low competitiveness and high unemployment rate). The global economic crisis strongly impacted all countries in the region, so it is necessary to reconsider former growth approaches. It is concluded that all participating countries aspire to integrate the Western Balkan into the European Union.