Foreign investors seemingly unfazed by Serbia’s numerous economic and political problems

Many western banks and companies are likely to continue investing in Serbia, despite ongoing political instability, the persistence of organised crime and the slow pace of reform. The narrow victory of the Democratic Party candidate Boris Tadic over his Serbian Radical Party rival Tomislav Nikolic in the June 27 presidential ballot will have come as a great relief to many liberal Serbs concerned that an SRS triumph, on top of all the other problems blighting the republic, would scare off foreign investment. Far-right gains are thought to stem from the public’s dissatisfaction with the economic reforms of the last few years and the hardships that have accompanied them. Nonetheless, a number of western investors interviewed by IWPR said that they would continue to regard Serbia as a good bet, even if Nikolic had won - and would only get cold feet in the event of the European Union or the Americans imposing sanctions on Belgrade. Western investors said they were confident that Serbia would in time develop into an advanced, democratic country. They said they were particularly attracted by the republic’s geographical position – in the heart of south-east Europe - and transport network; educated and skilled workforce; and the willingness of a significant proportion of the population to embrace reform.