This paper explores the international competitiveness of the Serbian economy and factors which contribute to its economic competitiveness. It focuses particularly on education factors identifying features of the higher education system that urgently need reform. It argues that the current higher education system has been unable to respond sufficiently promptly to the demands of the changing world environment. The findings suggest that student curriculum is overburdened and outdated, and needs to be brought in line with modern developments and practices. The emphasis needs to shift from teaching to learning.
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