During the 2003,socio-economic trends in Republic of Serbia and Montenegro were characterized by active role of Goverment to implement reforms,neccessary to step up transition process. According to the report of the European Bank for Reconstruction and Development (EBRD),Serbia and Montenegro recorded greater progress in implementation of reforms than the other 27 East European countries.In its report on transition,EBRD graded Serbia and Montenegro 3+ (scale 1-4)for its foreign trade policy,for the process of privatization of small enterprises and for price liberalization.

The current state of global economy,especialy EU is that a stronger growth rate in global economy could not be expected till the end 2004. According to the Republic development Bureau,economic trends in Serbia in the first four months of 2003,are characterized by a slowdown in economic activity,however together with stabilization of price real increase in salaries and growth in foreign trade.Exports of goods in period January-April 2003 increased by 28,6% in relation to the same period of 2002.The coverage of imports with exports in April 2003 is 41,9%.

Prices in May 2003 increased by 0,5% in relation on to April and costs of living by 0,4%. The total number of employed persons at the end of March 2003 amounted to 1,782.841 (source:Republican Labour Market Bureau).Using the same source we can notice that in Serbia were 947,426 unemployed persons.Mentioned number was increased by 17,7% in 2003 in relation to 2002.

In 2003,336 enterprises were privatized at tenders and auctions,which pulled in EUR 159,5 milion( source:republic Development Bureau).According the same source,the process of restructuring was started in 73 large economic systems.Also,the Serbian goverment adopted the Strategy for development of Entrepreneurship in Serbia from 2003-2008.

The analysis of economic development in Serbia shows that the most developed city in serbia is Apatin with the level of development 85% above average in Serbia and on the other side,the most undeveloped city is Tutin with the development 76% below the average of Serbia.

Finally,we can conclude that Serbia and Montenegro will try to be integrated into the global economy as soon as possible.In spite of our good wishes,it seems that our expectations are very unrealistic to be achieved fastly. Namely,after a long period of stagnation,wars,low economic rate of growth,high rate of inflation (in 1993.it was the highest rate in the World),high rate of unemployment and low national income per capita,path of integration will be long and difficult process.Knowing that,our goverment will try to make this process shorther with structural changes in national economy and making big steps in transition toward the structure and performance of advanced economies.As fast as our standard of living rise it becomes possible to make progress.The first results have been yet evident.

prof.dr Mirjana Radovic