The current crisis has been labeled as financial, however the roots of the crisis are far from being purely financial. Rather we are witnessing the collapse of a specific model of capitalism. The appreciation of the dinar which lasts for almost a decade and which makes the imported goods cheaper than the domestic, suffocating at the same time the domestic production and making the greater part of it unprofitable. A very important problem for the Serbian economy, 20 years since the start of the transition period is the dollarization, or in the case of Serbia, the eurozation which has to be downsized to an acceptable frame. Privatization, as the most significant part of the transition process began in 1989 in Serbia. Unfortunately, due to the weakness of the legal solutions as well as some oversights in its implementation is still not finished. The economic results of a substantial number of privatized companies are very bad so the downward trend of the industrial production and employments continues. The dynamics and the manner of managing the privatization process resulted in the de-industrialization of Serbia and the decrease of any sort of production. In the state of the global economic crisis, there has been a decrease of investments into privatization in Serbia. Could have the transition process in Serbia be done more successfully? The answer to this question is not always easy, however it seems that Serbia, when we take into account the delay in the process of transition should have learned from the experiences of countries which started with the process earlier and finished it successfully such as Slovenia. It seems that industrial policy is a precondition for the recovery of Serbian economy. For the future of Serbia as a state it is necessary to develop adequate infrastructure of scientific institutions, as it is at all serious European countries. Each of them must have a clear business agenda and long-term sources of funding from public sources.