ECONOMIC ACTIVITIES OF SERBIA IN THE 19th CENTURY

Abstract

Serbia, as one of many provinces of Ottoman Empire, was chained by Turkish feudal system for centuries, which economically and politically prevented Serbian nation to connect with western culture and civilization. However, by beginning of 19th century, Serbia starts its own struggle for liberation from Turks, which will result in so much wanted freedom of Serbian nation, after first and second Serbian uprising. It took a long time for demoted and devastated Serbia to recover after suspension of feudal system due to lack of any sort of economic activities. Apart from agricultural, crafting and trading activities organized in guilds, there were no other activities able to compete with the foreign capital. However, after getting autonomy inside Ottoman Empire, preconditions are created for economic recovery of the state, which was slowed down by primitive capital accumulation due to the forced occupation of agricultural land and massive impoverishment of rural population. Beside internal issues, Serbia was exposed to external pressure, due to geo-position between large and strong empires. By time, Serbia is becoming a subject of economical repression by imperialistic Austrian- Hungarian monarchy, who wanted to colonize all newly borne countries in Balkan. At that moment, survival of Serbia was determined by political stability and competitiveness of its economy in relation to foreign industrial products. Development of trade activities served as a symbol of resistance to Austrian imperialism. By using protectionism and signing favorable trade agreements with other countries, Serbia managed to push away foreign traders from the region. Accumulated capital through this activity became basis for further development of other economic activities and Serbian economy in general.