Economics of Agriculture, Year 67, No. 4, 2020, (pp. 1191-1204), Belgrade Three types of corruption: individual, business and political are observed in the
agricultural sector of Serbia. Land registry officials are reported as the third most
corrupt public officials, with nearly 6% of citizens who had interactions with them,
resulting in a bribe being paid. Transition in Serbia provided the opportunity for various
forms of abuse and illegal behaviour through the privatization of public ownership.
Privatization of Serbian agribusiness was not transparent, with frequent changes of
legislation. During this process, in the past decade, more than 50.000 workers lost
their jobs, which directly caused the increase of the hungry and the poor. This leads
to conclusion that the level of corruption in Serbia is very high. After the democratic
changes in 2000 Corruption Perceptions Index was 1.3, and in the meantime, this index
increased almost three times to 3.5, but the fight against corruption did not produce
significant results (Papić Brankov & Milovanović, 2015).
Two the most significant weaknesses of the food system in Serbia in 2019, measured
by GFSI, are public expenditures on agricultural research and development (with a
score of only 2.6) and gross domestic product per capita (US$ PPP), with a score of
13.3 (Table 6).
Table 6. Overview of the GFSI indicators evaluated as “weaknesses” in Serbia and
neighbouring countries in 2020
Indicator Serbia Bulgaria Romania Hungary Greece All countries average 2.2 Public expenditure on
agricultural R&D
2.6
4.5
5.5
3.3
1.6
5.0
1.3 Gross domestic product
per capita (US$ PPP)
13.3
17.1
22.1
24.3
23.4
17.8
*”Challenges” or “weaknesses” are defined as any indicator score below 25.0 (EIU database,
GFSI 2019)
Source: Authors’ processing and interpretation of data based on EIU database, GFSI 2019
Unlike indicators that are assessed as “strengths” and which contribute to strengthening
the food systems of analyzed neighbouring countries, all the observed countries have
the same indicators that represent their “weaknesses”. They are public expenditure
on agricultural research and development and gross domestic product per capita. The
exception is Romania, for which indicator (3.2) Nutritional standards is marked with a
score 0.0, suggesting complete absence of any food standards in this country.
Public expenditure on research and development is crucial for developing the
technologies and innovations necessary to increase agricultural productivity and
reduce environmental impact. The Agricultural Orientation Index (IAO)
8
estimates
8 The Agricultural Orientation Index (AIO) represents the agriculture share of government
expenditure, divided by the agriculture share of GDP. AOI value greater than 1 means that
the agricultural sector receives a higher share of government spending comparing to its
contribution to the overall economy (EIU, 2019).