07 January 2019 - According to Dr Veselin Vukotić, the Rector of the University of Donja Gorica, the critical thing in every debt is its connection with the profit that it generates once invested in a particular business. As long as the debt is seen in the context of profit it can generate, there is no negative impact on development.
The University of Donja Gorica hosted traditional Christmas discussions about the economy on January 6th. The topic of the 27th discussions was "Public debt and development“.
The host, Dr Veselin Vukotić, reminded that public debt was one of the causes of the downfall of our civilization. He pointed out that statement 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 is 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 not 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 also noted that the future “lies in the 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," pointed out Vukotić.
Quoting the words of Dalai Lama, Vukotić concluded that “Our only possibility to respond to the challenges of today is education”.
