The paper is focused on the causes and gender effects of the current global economic crisis, its particular effects in the Republic of Serbia and on the possibilities of overcoming the crisis. Using feminist development economics perspective this paper offers criticism of neo-liberalism with respect to the crisis. The strong imbalance in the relationships between work and capital is explained as a result of neoliberal deregulation and separation of the market economy from social and natural reproduction, as well as ignoration of the hierarchical relation established between paid work and care as unpaid work performed mainly by women. With regard to Serbia, when foreign capital is lacking, privatization funds are empty and the structure deficit is significant, the economy has faced decrease in income, rise in unemployment, fall in aggregate demand and women and children suffer the most. A new gender sensitive development strategy should re-address the current unequal power relationship, so that all people can exercise choices that would lead them to a fulfilled life.