Portal de Periódicos da CAPES

Serbia trade, 1878-1914

2003; Vilnius University; Volume: 49; Linguagem: Inglês

2424-6166

Branislav Jovančić,

Balkan and Eastern European Studies

This is a research of Serbia trade consisting of 90% agricultural products. They were sold by Serbian brokers to Austro-Hungarian traders. It was a problem to some Serbian politicians how to get rid of the dominant influence of Austria-Hungary, while the others saw only Austria-Hungary as a buyer of livestock and wheat. Prince Milan Obrenovic was an Austrophile. Wien won him over in order to conquer sphere of interest. They had made a secret convention after which he proclaimed himself King and changed government often. In 1881. he signed trade treaty with Austria-Hungary with a most-favored-nation clause concerning Austria-Hungary with no return to Serbia. After the abdication of King Milan his son Alexandar dismissed regents and imposed dictatorship. In 1903. there was a coup d'etat, and the People's Skupshtina (National Parliament) elected Petar Karađorđevic the King, under the condition the supreme authority to be in the hands of Skupshtina, not the King as it used to be before. From that time on democracy came into power, trade unions were established, development of Serbian industry was protected by customs and instead of liberal policy, protective foreign trade policy was introduced. But when Serbia decided to form a customs union with Bulgaria, Austria-Hungary declared customs war to Serbia in 1906. hoping to ruin Serbia by economic crisis. But, Ministar of Economy Government and assembly were very skilled in running economic policy, and they organized to win new markets and develop industry. Traders and manufacturers got reductions in order to invest capital in manufacture. Owing to economic laws they got benefits in return. Agricultural products were manufactured and exported to new markets. Serbia won the battle in customs war against Austria-Hungary and developed industry. Foreign-trade turnover of goods increased from 47 to 96 dinars per capita in the period of 1879. to 1911., and it means that in Serbia trade developed faster than population growth.