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One of the biggest problems of agriculture in Serbia is an institutionally undeveloped agricultural commodity market and inefficient resource allocation. Although oligopsony is inevitable and sometimes even useful for the majority of agricultural commodity markets, the crucial thing is that the government, due to its undeveloped institutions, is unable to penalise market participants who abuse their market position, and jeopardise competition by breaking contracts, operating in „grey economy“, etc. Some of the main directions Serbia should take towards promoting its agrarian market, include a shift from the grey market economy towards legal channels, more efficient Competition Policy and promotion of legal, judicial and executive branches of government.


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