Geo-Economics of the Danube Region and the Treaty on the Privatization of Smederevo Iron Works Ltd. with Hesteel

Vasić, Nenad (2016) Geo-Economics of the Danube Region and the Treaty on the Privatization of Smederevo Iron Works Ltd. with Hesteel. In: Danube and the new silk road: thematical proceeding from the international scientific conference, Belgrade, June 17, 2016. Institute of International Politics and Economics, Belgrade, pp. 351-371. ISBN 978-86-7067-234-5

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Abstract

The importance of geography and economics is very big in the modern world and international economic relations. Geo-economics, especially, for any economy and citizens of any modern country in the world. In this context, the Republic of Serbia is not an exception. The international river Danube is an important factor and a natural transport corridor for the transport of passengers, goods and many services, also business activities that are associated with it. Apart from the appropriate use of existing economic resources, in addition to ore and raw materials, it is necessary to have an effective traffic transport route. The administration airworthiness of the international river Danube provides the cheapest traffic transport, especially for the products of Smederevo Iron Works Ltd., which, according to the contract on privatization was sold to the Chinese company owner, Hesteel on April 18, 2016. Geo-economic importance of the privatization contract did fourfold: 1. privatization would contribute to improving the production capacities and to preserve existing jobs, 2. increase the share of gross domestic product by 1%, 3. promotion of bilateral economic cooperation and further encouraging economic ties between managers and businessmen and 4. increasing the volume of production of existing products and improving the negative balance of foreign trade of the Republic of Serbia with the People’s Republic of China. Increasing the volume of production will inevitably be reflected in the needs of intensive investments in the domestic and foreign markets. From this point, the importance, value and priority of the river Danube are associated with the new Silk Road to China, but also with the traffic project Marko Polo supported by of the European Union in 2013.

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