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is the surest path to a market economy. It changes the economic logic of business, motives of business subjects, breaks up robust economic structure of social-owned enterprises, increase the level of economic efficiency, accelerates market restructuring of enterprises and creates conditions for the inflow of additional capital from country and abroad indispensable for the acceleration of economic development. The dominance of private property of the means of production is the basis of the transition process. Private ownership is only compatible with a market economy. In the Republic of Serbia has not yet been completed the economic transition, respectively not fully completed the process of privatization. According to many surveys, the main reason for slowing down the economic transition or the process of privatization is lagging behind the institutional reforms and emergence of global economic crisis. The aim of this paper is to highlight the need to establish adequate institutional solutions both for acceleration and completion of the privatization process as the main basis for the inflow of foreign investments, to maximize investments in our economy and create environment for stable economical growth, conducting efficient macroeconomic policies and strengthening of market institutions and mechanisms.

PRIVATIZATION IN HE REPUBLIC OF SERBIA AS A BASIS FOR ESTABLISHMENT OF EFFICIENT BUSINESS