Vol 12 | No. 36

International Journal of Economics and Law.

Pursuant to Article 14 of the Rulebook on Categorization and Ranking of Scientific Journals,
the International Journal of Economics and Law is in category M23



Volume 12 | No. 36

December 2022


Aleksandra Brakus
Dragan Vučinić
Dejan Gligović

In this paper, we shall analyze the application of banking internal credit risk measurement models for the purpose of calculating the minimum regulatory capital. The Basel Committee established proposals for an internal rating based approach (IRB approach – internal rating based) for credit risk. This type of approach can ensure two key objectives: the first is additional risk sensitivity, in which there are capital requirements based on internal ratings to credit risk drivers of economic losses in the banking sector. The second is the one where the right structure of the RBI approach can provide a framework that encourages banks to continue to improve their internal risk management practices. This is based on internal ranking aims to improve safety and soundness in the financial system.




Dušan Dabović

The purpose of this paper is to analyze the legal basis of the new Common Agricultural Policy of the European Union (CAP), i.e., the three European Union Regulations that will be applied from 2023, forming the legislative framework for the development of agriculture in the EU Member States in the coming period. These are Regulation (EU) 2021/2116 on the financing, management, and monitoring of CAP, and repealing Regulation (EU) 1306/2013, Regulation (EU) 2021/2115 on establishing rules for the implementation of national strategic plans for CAP and repealing Regulation (EU) 1305/2013 and (EU) 1307/2013, as well as Regulation (EU) 2021/2117 updating Regulations 1308/2013 establishing a common organization of the markets for agricultural products, Regulation (EU) 1151/2012 on quality schemes for agricultural products, Regulation (EU) 251/2014 on definition, description, presentation, labelling and the protection of geographical indications of aromatized wine products and Regulation (EU) 228/2013 laying down measures for agriculture in the outermost regions of the EU. In the paper, the methods of textual analysis, formal-legal method and comparative method were used. Since its creation in 1962, CAP has undergone numerous phases of development following the development of the EU and the needs of agricultural producers and consumers. Therefore, in 2018, the European Commission suggested to change the legal basis of the CAP for its greater simplicity and efficiency and better compliance with the European Green Plan in terms of sustainability. The previous legal framework of CAP, adopted in 2013, was formally replaced by the new legal framework adopted on December 2, 2021, and will be effective as of January 1, 2023. The current Agriculture and Rural Development Strategy of the Republic of Serbia states that the adoption of the EU measures of the CAP can support the restructuring of New Legislative Framework On European Union Common Agricultural Policy 20 the domestic agriculture sector, and it is rational and valuable for the domestic agricultural policy to gradually align with the principles and requirements of the CAP, even before our accession to the EU. Therefore, domestic regulations in this area will be harmonized with the new structural regulations of the CAP in the coming period, as well as with special European regulations that will eventually be harmonized with their legal framework.




Predrag Dedeić

The goal of this paper is to point out the legal and economic importance of the protection of small shareholders. That protection is one of the basic pillars of good corporate governance. Without effective protection of those whose votes cannot significantly influence decision-making in a joint-stock company, because it is governed by the majority technique, there is no basic prerequisite for the dispersion of share ownership, the development of corporate culture, shareholding and the capital market. The paper includes the definition of minority shareholders, the categorization of their rights and basic protection measures that represent good practice contained in both the national and European (EU) legal framework, as well as in the “soft law” principles of reference international entities (IOSCO, ESMA, G20, OECD). Although our legislation with its solutions follows the regulatory trend of the most developed market economies, practice shows that the system does not work well, neither internally (within the company), nor externally (in proceedings before administrative and judicial bodies). Protection is weak and the capital market is narrow and shallow. This discrepancy between regulation and practice is the result of numerous factors. The basic one is that the existing regulations are advanced, as a result of the process of harmonizing our legal system with EU law, and the presence of entities on the capital market is the result of the administrative process of privatization, not market trends. In addition, the market environment is characterized by the absence of corporate culture and awareness of the importance of protecting minority shareholders for public joint-stock companies and the entire financial market. Such a situation gives rise to the need to review the existing legal and institutional solutions, as well as to review the capacity of state institutions and market entities (including those with public law powers such as auditors) to ensure respect for the principle of equality of shareholders, ensure the information of small shareholders and protect their economic, governance, control and other rights and provide effective administrative and judicial protection. The protection of minority shareholders is analyzed in the paper on several levels. It was observed in the light of the legal rules concerning the shareholders’ assembly (convening, agenda, decision-making, protection from shareholders with significant and controlling participation, etc.). The other side of the coin – the potential for abuse of shareholder rights by the minority – has not been left out either. The focus is further based on the characteristics of the mechanism for selecting members of the management and protection against conflicts of interest and abuses by persons who manage and represent the company. Also, the specificity of protection in complex takeover procedures of joint-stock companies, status changes, situations regarding related parties and group companies was considered. The role of the Securities Commission, in terms of competence and capacity to provide adequate protection, was also critically viewed. The role of judicial authorities was also analyzed, as were the legal means available to dissenting shareholders (individual and derivative actions, etc.). There is also a review of the importance of independence and professionalism of the media in reporting to the public and building responsibility and corporate culture.




Miodrag Džodžo
Milica Kalicanin
Zoran Kalicanin

In this paper, the authors provide an overview of selected strategic risk in- dicators for a pool of banks from Serbia and Bulgaria in the period before the pandemic in 2019 compared to the year of the pandemic, 2020. The paper deals with the possible impact of the Covid-19 pandemic on the banking sectors of the Republic of Serbia and the Republic of Bulgaria. Special attention is devoted to hypotheses that should explain and define the relationship between the impact of the Covid-19 virus pandemic on individual banks in these two countries, as well as the impact of the size of the given bank on resilience. One of the hypotheses sets the selected ROE indicator as a reference that indicates the bank’s vul- nerability in relation to its belonging to a group (on average larger or smaller) in the overall banking sector of the mentioned countries. In order to determine the possible impact of the pandemic and gain insight into the banking sector, the authors collected data on the following: total assets, total capital, total operating income, profit, as well as data on leverage and ROE ratios. The authors, with the help of hypotheses, provide conclusions that could serve to identify the expected resilience (of smaller and larger banks) for some future global impacts that could occur. In addition to the aforementioned, the scientific contribution also provides an insight into whether a world crisis such as a pandemic makes a difference in the banking sector in the countries where one is a member of the EU and the other one is outside the EU.




Filip Hadžić
Božidar Forca

In the functioning of the state and society, there are phenomena that, unequivocally, cause damage and have a multidimensional character. One of such phenomena is corruption. As a negative phenomenon in various social activities, corruption is recognized in all countries, and the fight against this deviation calls for zero tolerance. However, it is evident that despite the declarative commitment to eliminate corruption, corruption is actually getting stronger, which in addition to direct damage, primarily of a material nature, leads to a weakening of the reputation of the state in international relations. This paper was initiated by the data published by Transparency International on corruption for the year 2021, from which it can be seen that the Republic of Serbia has fallen several places on the scale of countries in the world. This paper is an attempt to determine the attitude towards corruption in the Republic of Serbia, as well as the attitude towards this scourge on the part of the wider public. The paper used the results of the research on the attitude of the public towards corruption in the Republic of Serbia, in which the author of this paper participated. The research was carried out for the needs of the Agency for the Prevention of Corruption. Also, the paper analyzes the attitude towards corruption as a security threat in the strategic documents of the Republic of Serbia. The aim is shown by certain data from the research on corruption in Serbia. The methods we have used include content analysis and immediate field research. The starting point of the research is the following: corruption is a security threat definitely widespread in Serbia, and research into this deviation is absolutely justified.




Veljko Milutinović

This paper brings together two principles, i.e. alleged principles of EU law namely, effet utile of EU law and national procedural autonomy under EU law. For decades, these principles seemed to act as opposing forces: the first pulling toward closer EU integration and the harmonization of the EU legal order and the second pulling toward a more fragmented system of an EU as an amalgamation of national legal orders. Effet utile was developed by the Court of Justice of the European Union as a method of judicial harmonization. It served to plug the gaps left behind by EU legislation and national law, using the need for an effective application of primary EU law as a pretext for harmonizing national law or, rather, imposing new legal solutions derived from EU law itself. National procedural autonomy, while pulling towards decentralization, was similar in one key respect: it, too sought to plug the gaps in the EU system of law(s), by using national legal remedies and procedures to give effect to EU law in the national legal systems. The aim of this paper is to demonstrate that the two principles, while often opposed, are, indeed, inseparable and should be perceived as a single guiding philosophy in trying to give effect to EU law in the national legal orders. The methodological difficulty arises in determining where and when, and on what basis, one principle ends and the other one begins. How much national autonomy should be allowed for effectiveness of EU law? When does effectiveness go beyond what is necessary in a decentralized, still largely national legal system? In order to raise and to try and respond to such questions we must aim at the root of the constitutional framework of EU law. This paper will try to raise the right questions, while leaving the answers to a much broader and longer debate.




Ana Opačić
Bojan Marinković

Establishing corporate governance in a public company where the state appears as the majority owner is a very important challenge both in countries that have developed market economies and corporate governance practices, but also in those that are still developing. More precisely, it is very difficult to find a balance of state competencies in relation to the performance of ownership functions, such as candidacy and election of directors in public and state-owned enterprises, as well as members of the supervisory board, while refraining from political interference in the work and management of state-owned companies. The dynamism of large organizations makes the impact on their behavior difficult and complex. Public companies in the light of corporate governance have a number of specifics that are determined on the basis of the business identity itself, primarily in relation to whether they are single-member companies, whether the founders are exclusively state bodies, and whether they perform activities of general interest. Corporate governance in Serbia has become a very important topic at the end of the last century, which was a direct consequence of initiating the process of property transformations and changing the role and importance of the private sector in the industry. Despite the fact that it has been happening for more than twenty years, there are still very few societies that have really understood the depth and complexity of the subject.




Michail Pappas

The main characteristics of information and communication technologies are: flow of information, connections without borders and time (simultaneity), reduction of costs and increase of benefits. That is why in developed countries, the inclusion of information and communication technologies in the education system is of the utmost importance. The term ICT refers to: computers, computer networks and multimedia (which usually mean a combination of text, audio and video). The use of term is herewith present in the broadest sense. The notion of education, however, is limited to primary and secondary education, as understood in Greece. New technologies encourage students to move from passive listening to actively seeking and connecting information, and also bring school events closer to the outside world. However, the mere presence of ICT is far from sufficient. Many schools are already very well equipped with ICT, but this does not have a significant impact on learning methods, which are still mostly traditional. The author is of the opinion that the main problem is the type of education and technical support in the use of ICT which the existing school system offers teachers and professors. In Greece, there is no systematic approach to training educators to use ICT, although they are expected to use it effectively in teaching. Furthermore, the technical equipment varies from school to school, some have computers connected to the network, and others have only computers in computer classrooms online. Some schools have control over the computer network, others do not. It could be said that the system is far from being standardized. The hypothesis advocated in the paper is that information and communication technologies are not used enough in education in Greece and that the reason is the lack of knowledge of educators on the use of ICT, limited access to knowledge and very little technical support in using ICT. The aim of the paper is to present a case study of teacher training in the application of ICT in Greece through training programs and a review of the work of training support centers. The paper also presents new training for two levels of knowledge and skills for ICT, as well as training for PAKE instructors.




Milan Radosavljević
Života Radosavljević
Suzana Pajić

The pandemic is considered one of the most complex challenges that has arisen in the last two decades, and it refers to the mass infection and health endangering of the population on a global level. It has disrupted general social, economic, political, sociological, cultural, religious, mental, customary and other currents. The pandemic has caused death of a large number of people, disrupted the health and quality of life of the population, closed the world economy and disrupted existing supply chains, with little chance of rebuilding broken ties, lowering the quality of education, culture, sports and recreation. Compared to previous health crises, it is believed that the COVID-19 pandemic will produce much greater damage to the global economy, due to the high level of interdependence that exists between individual countries. By all parameters, the crisis was a surprise, that is people and organizations at the global level faced the pandemic unprepared, both in terms of material and intellectual resources, and above all in the lack of knowledge and skills. This imposed, and still imposes, the need to abandon the classic models of crisis management and apply concepts based on new knowledge and concepts, because it has been shown and proven that old knowledge and experience can not solve the pandemic caused by COVID-19. It is an intelligent virus that has the ability to adapt, ie mutate, which means that in a relatively short time it adapts and opposes existing medical or non-medical situations and measures. In this pandemic, we face the problem that we do not know what we do not know and that what we knew and what we know is not enough to prevent this disease, and then to react with its successful suppression. The population at the global level has realized that medical science has not mastered the strategies for managing mass health crises, ie pandemics. The World Health Organization has proven to be an inadequate, ie sluggish and bureaucratized organization and apparatus. It has largely passivated national public health, to certain actions and non-actions, expecting certain solutions, or recommendations for a more successful fight against the pandemic. WHO decisions were not only inadequate, but were often overdue, and in many elements illogical and controversial. This imposes the need to create and apply new knowledge, as well as new strategies in the management of knowledge, skills and experience of (non) medical professions. This is necessary because it turns out that the pandemic is a multidisciplinary problem and that it is necessary to apply holistic technology to manage the pandemic, as the highest quality tool in the management of complex phenomena. The relationship between healthcare, ie life and the economy is especially important, and it represents the basis for creating strategies to combat COVID-19. In general, it can be said that it is half a medical and half a non-medical problem. The dilemma is which half belongs to one or the other part. This knowledge is crucial for resolving the dilemma that objectively exists in the strategies for fighting this disease and in crisis headquarters, as well as in the World Health Organization, that the pandemic is exclusively a medical problem and that the pandemic crisis should be managed by medical experts. This paper aims to present the manifested problems in the crisis management of the COVID 19 pandemic in the period from its inception to the end of 2021 and to suggest the introduction of new strategies in knowledge management. Special attention will be given to the management of the pandemic in the Republic of Serbia, which according to certain parameters had different successes in the fight against this virus, and the so-called post-pandemic pandemics.




Vladan Stanković
Bojan Zdravković

Economic analysis of law, as one of the youngest sciences, with an interdisciplinary character, arose as a need to scientifically explain the consistent and justified application of law in practice by applying economic categories. Law in its long historical development became the subject of interest of economic science in the middle of the last century, and since then the theoretical concepts of economic analysis of law as a special science have been intensively developed in the field of interdisciplinarity. The basic issue that is of interest to economists and lawyers is “how useful is the economic analysis of law?”. In answering this question, we must first recognize the basic achievements in the economic analysis of rights, which have been undoubtedly already established as principles. In their actions, theorists of law and economics do not contradict the already achieved values realized on the basis of the classical general theory of law and general economics, but strive to constitute a different angle of observation, different from the existing one, precisely on the above bases. A significant starting point for understanding the Economic Analysis of Law is a set of concepts of economic categories applied in law. Certainly, efficiency occupies one of the central places in the economic analysis of law, the measurements of which are not extremely simple, especially in certain branches of law. In the paper, the authors discuss the concept of efficiency as the primary goal of the economic analysis of law, starting from the historical foundation of the economic analysis of law and the early theories on which it developed as a science. The authors herewith provide an account of the achieved level of conceptualized modalities of economic efficiency of legal norms by analyzing the dominant concepts that represent already formed groups. In clarifying this term, the authors start from the analysis of the maximization of the usefulness of the use of resources, which can be interpreted in the broadest sense of the word. The initial concept defined in this way will provide us with the possibility of explaining maximization – efficiency as an economic category applied in the process of creating and applying legal documents. The starting position determined in this way inevitably causes the question of substitution of the principle of efficiency instead of the principle of justice and morality as known in the general theory of law. The correlation between these categories is very difficult to establish, especially if we take into account that these concepts are defined in the framework of classical sciences, but not in the sense of economic analysis of law.