According to Dr Veselin Vukotić, the key thing with every debt is its connection with the profit that it generates once invested in some business. Al long as the debt is seen in the context of profit it can generate, there is no negative impact on development.
Last night at the University Donja Gorica traditional Christmas discussions about economy were held. The topic of the 27th discussions were „public debt and development“.
The host, Dr Veselin Vukotić, reminded that public debt was one of the causes of downfall of our civilization. He pointed out that the assertion that “65% is the endurance limit of the national economy is false”.
The debt was discussed in the context of development too.
“As long as the profit from investments of debt are higher than the debt itself, the debt is the stimulus of the development”, says Vukotić.
As he said, the debt refers to future profit, and profit can’t be made without investments, innovation and entrepreneurship.
“If the debt is developmental, it makes us think about the future. If it’s aimed at expenditure and maintaining the status quo, political or any other, then it’s dangerous for the development”, said Vukotić.
He said that the future “lies in information society”. We need to get two things straight. First, national states are losing power. Second, fight for the preservation of the identity of the states means captivating the vision.
Quoting the words of Dalai Lama, Vukotić said that “our only possibility to respond to the challenges of today is – education”.
