Geo-Economics and Reindustrialization – Challenges for Croatia and Serbia

Inherited instability and great imbalance in the market of the region in the context of new geopolitical trends require serious geo-economic structural changes. The development will be conditioned by economic and social changes in the future and depend much more on internal factors than on external environment. Hence, the paper aims to discuss appropriate solutions and concepts which should be sought in: 1) the development of a stimulating environment for the implementation of reindustrialization for development and comprehensive engagement of available economic, technological and human resources with innovative optimal allocation of production factors based on cooperation of all participants of modern industry and innovative society and 2) intensifying structural changes in technological and organizational performance of companies. The content of the goals and actions of sustainable development should be based on the paradigm of reindustrialization in the context of: 1) improvement of all forms of management, especially in the field of export enterprises, business networks and alliances, 2) respect for the principle of territorial cohesion of economic and social partners, and 3) precise and transparent professionalization and decentralization of public regulation of the economy and economic development. Finally, the paper discusses what a decentralized approach to industrial and cohesion policy should entail in terms of new geo-economic structural changes