A Way out of the Crisis Possible through Functional Institutions and a New Economic Model of Development - Stated by the Committee for Economy, Finance and Budget

Dean of the Faculty of Economics, Mijat Jocović, PhD and head of the Department of Economic Analysis and Policy, Nikola Milović, PhD participated in the work of the session of the Committee for Economy, Finance and Budget, the topic of which was "Economic situation, challenges and prospects".

On that occasion, Dean Jocović said that it is necessary to have more trust in institutions, because only they, not individuals, can get us out of the crisis we are currently in: "We must also trust more in domestic wisdom and knowledge." I am convinced that policy makers, as in many developed countries, should consult institutions - University, CANU when designing policies. This was absent in the previous period. It was absent when the reform of the tax laws was conceived, the effects of which today cause sharp conflicting comments from professional clarity, but it was also absent in many cases in the previous decades. To be precise, the Faculty of Economics did not create the economic development model of Montenegro, and if the professors of the Faculty of Economics participated in its creation in previous decades, they never did so on behalf of the Faculty of Economics, as an institution, but as individuals or political representatives. The Faculty of Economics does not belong to any politics, but to the state of Montenegro. Policies and politicians, like us and you, pass away, but institutions remain." He reminded the audience that the ministers of finance Damjanović and Economic Development and Tourism Đurović in the previous period, since the mandate of Dean Jocović began, through several public events and joint activities showed what the cooperation between the oldest university institution and policy makers should look like: "I thank them for that and invite you and all the interested public to use the resources of domestic intelligence, which, with the experts you import, is often competitive on the international and especially on the regional level market, but often unrecognized on our domestic market," Dean Jocović concluded.

Speaking about the topic of the session, Professor Nikola Milović of the Faculty of Economics reminded the audience that the current economic policy of Montenegro and the economic development model are based in the Constitution, Article 1, which states that Montenegro is an independent and sovereign state, but also that it is a civil, democratic, ecological and social justice state, based on the rule of law: "Allow me to remind you that within the chapter on economic regulation, Principles, in Article 139 it is stated: Economic regulation is based on a free and open market, freedom of entrepreneurship and competition, independence of economic entities and their responsibility for assumed obligations in legal transactions, protection and equality of all forms of property. The effectiveness of such a policy depends on the reality of goals, alignment of goals and instruments, coordination of instruments, selection of the most effective measures of economic policy and timeliness in undertaking measures and instruments," he said. Professor Milović, pointing out that the crisis we are in was caused by the Covid-19 pandemic and war events in Ukraine, emphasized that the crisis is a chance for a new beginning: "Do we need a new establishment of order through the economic school of ordoliberalism and the belief that capitalism requires a strong the government so that it would create a framework for the establishment of order that would allow the free market to function most effectively. The state can only stimulate the economy if it constantly improves institutions and rules. The market must remain a good servant because it has proven to be a bad master!" he concluded. The thematic session of the Committee for Economy, Finance and Budget was attended by Minister of Finance Aleksandar Damjanović, Minister of Economic Development and Tourism Goran Đurović, as well as representatives of the Union of Employers, Union of Trade Unions of Montenegro and economic analysts.