Corruption in Serbia in 2020

Serbia has faced persistent challenges with corruption, impacting its political, economic, and social landscape. This report aims to provide a comprehensive overview of corruption in Serbia in 2020 by examining various sources, including reports from international organizations, Serbian media outlets, academic research papers, and official government reports.

Corruption Perception Index

The Corruption Perceptions Index (CPI) serves as a primary global indicator of public sector corruption, evaluating 180 countries based on perceived corruption levels. In 2020, Serbia received a score of 38 out of 100, positioning it at 101st place out of the 180 countries assessed1. This score suggests a moderate level of perceived corruption within Serbia’s public sector2. It is important to note that the CPI relies on expert assessments and business surveys to gauge perceptions of corruption3. Another valuable resource for understanding public opinion on corruption is the Global Corruption Barometer4. A 2020 research article indicated a correlation between CPI scores and GDP in Balkan countries, suggesting that higher perceived corruption levels can hinder economic growth3.

Reports from International Organizations

Transparency International, a renowned global anti-corruption organization, released several reports in 2020 that provided insights into corruption in Serbia. One report emphasized the influence of the COVID-19 pandemic on corruption risks, underscoring the need for adaptable and innovative anti-corruption strategies5. Another report examined the broader issue of corruption in Eastern Europe and Central Asia, identifying autocracy and weak justice systems as significant contributors to widespread corruption in the region, including Serbia4.

Furthermore, the European Commission’s 2020 report on Serbia highlighted both progress and challenges in the country’s fight against corruption. While acknowledging some steps taken to strengthen the mandate and independence of the Anti-Corruption Agency, the report expressed concerns about the lack of an effective coordination mechanism to address corruption systematically. The report also noted a decrease in the number of finalized high-level corruption cases compared to previous years6. The European Commission recommended that Serbia improve its track record on investigating, indicting, and convicting high-level corruption cases, including the seizure and confiscation of criminal assets. They also urged Serbia to effectively implement the Law on the Prevention of Corruption in line with EU standards and international agreements6.

In addition to these reports, the US Department of State’s 2020 Country Reports on Human Rights Practices for Serbia acknowledged the Serbian government’s efforts to address human rights abuses, including corruption. However, the report also noted concerns about potentially unreported and unpunished corruption cases7. It is worth noting that Serbia’s two nuclear research reactors and an abandoned uranium mine lack proper licensing, indicating potential regulatory failures and lack of oversight, which can be linked to broader concerns about corruption and transparency6.

Reports from Serbian Media Outlets

Media reports in Serbia during 2020 brought to light several corruption cases, often involving allegations of abuse of office, questionable privatization deals, and potential links to organized crime8. These reports highlighted the vulnerability of sectors like government procurement, natural resource extraction, and the judiciary to corruption9.

Academic Research Papers

Academic research conducted in 2020 provided further insights into the complexities of corruption in Serbia. One study investigated the relationship between corruption and economic growth in Serbia, concluding that corruption negatively affects tax revenues and overall economic development10. Another research paper explored the role of the institutional environment in conducting business in Serbia, emphasizing the challenges posed by corruption11. A USAID report from 2020 revealed that Serbian citizens perceive corruption as one of the top three problems facing their country. More than half of the respondents recognized the detrimental impact of corruption on Serbian society, politics, and the business environment12.

Official Government Reports and Statistics

The Anti-Corruption Council of Serbia, an advisory body to the government, issued reports in 2020 addressing various aspects of corruption. These reports covered topics such as public procurement, non-transparent contracting, enforcement agents, the science fund, and the rule of law6. However, concerns remain about the lack of effective coordination and implementation of anti-corruption strategies6.

In addition to the Anti-Corruption Council’s reports, Serbia adopted the ISO 37001 Anti-Bribery Management System14. This system provides a framework for organizations to prevent, detect, and address bribery. However, data on its application in Serbia was not available at the time of this report14. It is important to note that the prevalence of bribery in Serbia exceeds the regional average, indicating the severity of the corruption problem9.

Serbia has also taken steps to combat money laundering and terrorist financing. The Strategy for Prevention of Money Laundering and Terrorist Financing 2020-2024 outlines the country’s commitment to addressing these financial crimes15. As of December 2023, Serbia’s system is reportedly aligned with all 40 recommendations of the Financial Action Task Force (FATF), placing it among a select group of countries that have achieved this level of compliance15.

Case Studies

Nenad Popović

In 2020, Nenad Popović, a Serbian Minister without Portfolio, faced accusations of corruption related to the 2019 privatization of an electrical transformer manufacturer16. Investigative reports revealed that this privatization deal led to the bankruptcy of the manufacturer and left hundreds of employees jobless16. Further investigations uncovered Popović’s network of offshore companies in Cyprus and the British Virgin Islands, his residency in Switzerland for tax purposes, and his estimated wealth exceeding US$100 million17. Despite these allegations and findings, no charges have been filed against Popović16.

Siniša Mali

Siniša Mali, the finance minister, was accused of plagiarizing his doctoral thesis8. The University of Belgrade’s Ethics Commission concluded that Mali’s thesis lacked original scientific contribution18. In 2019, the Belgrade University Senate annulled Mali’s doctorate19. However, the Administrative Court overturned this decision on procedural grounds20.

Zlatibor Lončar

Zlatibor Lončar, the Health Minister, was accused of having links to an organized crime group8. However, no further information is available regarding this case8.

Railways Serbia

Transparency International’s project on high-level corruption cases in the Western Balkans and Turkey identified a specific case related to Railways Serbia21. This case involved allegations of corruption within the railway sector, highlighting the susceptibility of infrastructure projects to such practices.

Conclusion

Corruption remains a significant challenge in Serbia, affecting various sectors and undermining public trust4. While the government has taken some steps to address corruption, such as adopting anti-bribery management systems and strengthening the mandate of the Anti-Corruption Agency, enforcement and prosecution of corruption cases remain largely ineffective9. This ineffectiveness is partly due to the lack of transparency, political influence, and weaknesses within the justice system9.

Despite some progress in anti-corruption reforms, their implementation remains a major challenge22. The ruling party’s failure to effectively address corruption, despite its initial promises, further contributes to public disillusionment and distrust23. Addressing these underlying issues, including strengthening the rule of law, promoting transparency, and ensuring accountability, is crucial for effectively combating corruption and fostering good governance in Serbia.

A comparative analysis of the findings from various sources reveals a consistent concern about the pervasiveness of corruption in Serbia. International organizations, Serbian media outlets, academic research, and even government reports acknowledge the challenges posed by corruption. While there is some recognition of efforts to combat corruption, the overall assessment suggests that these efforts have been insufficient to effectively curb the problem. This highlights the need for a more comprehensive and robust approach to anti-corruption measures in Serbia, with a focus on strengthening institutions, enhancing transparency, and ensuring accountability at all levels.

Works cited

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