MAK-NEWS 09/08/95 (M.I.L.S.)

From: MILS - Skopje <mils@ITL.MK>

Macedonian Information Liaison Service Directory

CONTENTS

MILS NEWS

Skopje, 9 August 1995

[01] RED CROSS SECRETARY GENERAL VISITS MACEDONIA

George Weber, Secretary General of the International Federation of the Red Cross and Red Crescent Societies paid a one-day visit to Macedonia yesterday. He had several meetings with government senior officials and with President Gligorov.

'In November this year, Macedonia will become the 164th member of the International Federation of Red Cross and Red Crescent. It has fulfilled all admission criteria,' he said during a meeting with Prime Minister Crvenkovski. They also discussed the situation in former Yugoslavia and the latest escalation of the conflict in Croatia. Crvenkovski expressed gratitude to the organization for its support of Macedonia through numerous aid projects for the social cases, refugees and health institutions in the country.

Weber, accompanied by Regional Delegate Patric Healey, later met with Foreign Minister Stevo Crvenkovski. They explored ways to incorporate the Geneva conventions into the Macedonian military laws, as well as the current preparations for the coming General Assembly of the International Red Cross, at which Macedonia will also take part.

At the meeting with President Gligorov in Ohrid, Mr. Weber presented the activities of the Federation on the territory of former Yugoslavia.

[02] GOVERNMENT HOLDS PRESS-CONFERENCE

Following a session Monday, the cabinet held a press- conference, to inform reporters of a Project for Prevention of Crime. The Government has given the Ministry of Justice a 15-day dead line to prepare acts for fight against organized crime in 5 areas.

Minister of Justice Popovski said Macedonia, being a country in transition, is like many other countries facing problems with organized crime, illegal drug and arms dealing and money laundering. It is the aim of the government to intercede and fight organized crime, he said. All programs will be based on international standards and principles and local and state councils and committees will be formed to deal with different aspects of the problem, along with a body independent from the administration, assigned to analyze and inform the public of any forms of corruption in the state administration.

Changes will also be introduced in the Criminal Law and to incriminate any new forms of crime, which will consequently bring about changes in the Criminal Procedure Act and Penalty Code.

Finance Minister Risto Ivanov said the Government has decided to establish a new Ministry of Trade to secure bigger efficiency in the implementation of the foreign trade policy and to rationalize the administration work by issuing a single document to legal entities involved in foreign trade.

The Government standpoint on the latest military action in Croatia was presented by spokesman Djuner Ismail, who expressed concern with the escalation of conflicts between the former federal units of ex-Yugoslavia. It is the Government view, he said, that all sides are losing in this war, and that the first step toward a permanent solution for the crisis would be mutual recognition of all former Yugoslav republics in their internationally recognized borders.

Asked whether the Government will continue with the let offs in the administration, Ismail said the process is still underway and at both vertical and horizontal levels.

Minister Ivanov also said that the cabinet has not shown understanding for the latest demand by the public electricity company to increase the price of electricity.

[03] ALTERING THE BALKAN MAP

The Skopje daily Nova Makedonija's correspondent from Sofia reports that media in Bulgaria claim that a secret agreement has been made to alter the current map of the Balkan peninsula. The Sofia daily Trud writes that the great powers have concluded bargaining and left it to Tudjman and Milosevic to operationalize it. Bulgarian Radio also believes that the great powers stand behind the general conclusion that, since a political solution is not possible at the current moment, it should be enable by time-limited but intensive military operations to change the ratio of powers on the terrain. US President Bill Clinton is being cited in this context, as mentioning 'short-lasting military operations'. Analysts also point to the latest development of Belgrade-Knin relations, Tudjman's drawing in London, Bosnian Serbs' operations in Zhepa and Srebrenica, and finally the operation 'Storm'. The latest moving of large groups of people from place to place, media in Bulgaria claim, are a part of this 'bargain' among the great powers. It is also claimed that Kraina Serbs are not fleeing from their territory, but are being withdrawn under a Belgrade directive.

All sides, Trud comments, will benefit from this bargain, which only deals away with the possibility of turning Bosnia into a platform of Islam Fundamentalism, leaving the Muslims in Bosnia as the greatest losers. The Serbian-Montenegrin federation will remain the largest state in the Balkans, to satisfy Russia. The US and Germany will gain leading positions in western parts of the former Yugoslavia. Only the future of Macedonia remains uncertain. Belgrade is sure to try and gain Macedonia, but it is more likely that the Serbs will propose a new form of economic unity, as the situation seems favorable for this to be carried out. This is even more likely as Moscow and Athens will most probably press Macedonia to accept this. Comments conclude that Bulgaria 'has missed a thousand of opportunities to gain position in Macedonia.'

[04] SERBS IN MACEDONIA ASK FOR SHELTER FOR REFUGEES

The Democratic Party of Serbs in Macedonia and the Association of Serbs and Montenegrins held a press- conference yesterday, to condemn the 'Fascist-like genocide over the Serbian people, carried out under patronage of the United Nations, America and Germany.'

Party leader Dragisha Miletic expressed complete solidarity with Serbs from 'the western Serb states', offering physical, material and moral support. He also appealed to authorities in Macedonia to send humanitarian aid to Serbian refugees and shelter the 'misfortunate and suffering brothers who will reach the borders of Macedonia.' It was said that the latest attacks on Serbian Kraina endanger not only the Serbian people, but the Orthodox religion in general. Miletic bitterly condemned the Russian policy which, as he said, is in most cases more than harmful for the Serbian nation.

[05] ILINDIA ACCUSES GLIGOROV OF FALSE DEMOCRACY

The Prishtina daily Rilindia is cited by Skopje Vecer as writing that 'President Gligorov is exercising political acrobatics by releasing the ten ethnic Albanians, convicted for involvement in the paramilitary affair, in order to gain political rating on a basis of false democracy.'

[06] COST OF LIVING FELL IN JULY

Retail prices in July in Macedonia have remained the same as in the previous month, despite the rise in prices of industrial and non-food products, mainly due to the 9.8 per cent fall in prices of agricultural products.

The cost of living in July fell by 0.6 per cent against June, increasing as little as 1.9 per cent against last December.

[07] SCHOLARSHIPS FOR YOUNG ECOLOGISTS

As part of its Junior Fellowship Program, the Budapest Regional Ecology Center approve of credits for training young ecologists in the region. The scholarships include one-month training courses in Budapest and applications are to be submitted by the end of the month in the Skopje office. Application requirements are knowledge of the English language, membership in an ecology organization and 20-30 years of age.

[08] DRINKING WATER IN TETOVO NOT TO BE USED

The Ministry of Health and sanitary and health inspections banned the use of drinking water from several springs in Tetovo and its surroundings. A similar decision was also brought last month, but no one seems to respect it.

[09] 'ST. CLEMENT OF OHRID' CELEBRATES FIFTH ANNIVERSARY

The fifth anniversary of the dedication of the Skopje church of 'St. Clement of Ohrid' will be ceremonially marked today. The celebration started by a morning sermon of Head of Church Father Mikhail, to be followed by revealing a monumental plaque, evening service and entertainment program.

[10] SPORTS

- At the current Balkan Junior Soccer Championship in Lilleburger, Turkey, the Macedonian team will play its third match against the host.

-In Skopje, yesterday, the Macedonian soccer champion Vardar won a qualification match against Samtredia of Georgia, by 1:0.

- The Macedonian soccer team Sileks yesterday left for Hungary to play the first European Cup qualification match against Vats Samsung.

- A team of six Macedonian wrestlers left for Atlanta, the host city of the Olympic Games, to participate in the world's wrestling championship, 10-14 August.

[11] MILS SPECIAL SUPPLEMENT: WHAT TO DO WHILE WAITING? - PART II

by Prof. Vladimir Kandikjan

(Puls, 4 August 1995)

As for the use of Macedonia's membership into the Union, it would be multiple. Firstly, Macedonia would become a recipient of significant financial means on a basis of a common agricultural policy. No less significant resources would also be obtained through projects as part of EU's regional, structural and social policy. Greece's grants, for instance, are a nice example to present a rough picture of the amount of such projects - in 1990 alone, it has received a net amount of Ecu 2.470 billion, or a 4.9 per cent of its national product.

Macedonia has achieved a certain progress over the past few years in stabilizing its economy, the inflation rate taken as a basic indicator. Last year, for instance, the yearly inflation was between 55 and 60 per cent, against the projected 70 per cent. This year, the state expects to see an inflation on only 17.8 per cent. According to the economic movements so far, this projection is quite realistic. Having in mind the inflation rate of 2-3 years ago, this is certainly a considerable progress. Yet, it has to be also born in mind that Europe will accept only an inflation rate of a single figure. It also must not be forgotten that it is much easier to lower inflation from three to two figures than it is to achieve a one-figure inflation rate.

What should concern economists in Macedonia is really the high price paid for the stabilization of the economy, that is the drastic fall in production (approaching a cumulative 60 per cent), the increasing unemployment, as well as getting close to (if it is not crossed already) the very line of a large group of people's ability to endure and cope with life. This more than clearly shows that economic growth must be set as the basic priority in the nearest future. Evidently, revival of economy is the only means to deal with the most serious problems of each economy, such as unemployment and low standard of living. Finally, Macedonia's ambition ought to be primarily aimed at achieving high growth rates of some 7-10 per cent per year, if it is to - at least to a certain extent - narrow the gap dividing it from the EU. Because, it is illusory to even think, let alone count with, a full EU membership with the current $800 per capita.

One of the necessary conditions for stable, long-term economic growth is to carry out deep and all-involving microeconomics and structural adaptations. Comparative experiences and empirical evidence have undoubtedly confirmed the economic superiority of private property. Therefore, there is an almost unanimous consensus on the need for privatization. The differences in views almost always come down to the privatization methods and pace. As for the privatization process in Macedonia, there seems to be a need to intensify and accelerate it. Yet, it is of great importance that all relevant subjects and the wide population accept the privatization as a need. This, on the other hand, depends on how present and future privatization profits are distributed among the population; the more equally profits are distributed, of course, the greater the degree of acceptance and support of the privatization by the public will be. It seems that is would be fatal for the privatization if it became identified with let offs or ways for a small group of people to accumulate enormous capital. Besides the transformation of ownership, another fundamental factor for economic growth is to make sure that companies be radically transformed, but in such a way that they be able to survive through the ruthless competition at the world market. Restructuring means not only introduction of new and modern techniques and technology; it is more important to change the organization and development approach, to accept principles of modern management, and to create an adequate competition atmosphere. Finally, one of the best ways to carry out a global restructuring would be to invest in new small and medium-sized companies that would not be burdened with any past debts and able to achieve high productivity and efficiency almost as soon as they start operating. In this context, it is highly important to attract foreign capital and, consequently, new technology, know how and marketing approach.

The list of necessary microeconomics adaptations is particularly long, so we will mention only a few of them here. The European market is subjected to very strict and high industrial and technical standards and not to meet them means not to be able to enter the market. The same goes for standards of consumer and environmental protection. If European standards were to be applied on the Macedonian domestic market, a third of the foodstuff currently sold in Macedonia would be immediately banned on grounds of being harmful for the health of consumers. The level of ecological conscience and the complete lack of any standards in this field is a story for itself.

The transition towards market economy, besides changes in the economic and political sphere, also presupposes radical transformation of the legislative. The market economy is not consisted only of the dominant private property as a supporting pole and adequate economic institutions, but also of numerous legal regulations that determine the market behavior of economic subjects. In this context, Macedonian law-makers are best advised to become familiar with the EU regulations (so-called acquis communautaire) and to find ways to incorporate it into Macedonia's legislative, thus making the latter compatible.

Transition experience in ex-socialist countries has so far shown that it is by no means sufficient to only design an adequate package of radical reforms and their appropriate division into sequences. It is much more important and far more difficult to carry out the reforms in practice. Probably one of the more serious obstacles is the state administration's incompetence and reluctance to turn the reforms into reality. That is why a process of modernizing the administration also has to be set as a priority task. If one was to sum up the basic findings in a precise and illustrative manner, one could remind of two old proverbs - firstly the old Latin one saying 'Per aspera ad astra', and then a Chinese one that says 'Even a ten thousand miles journey begins with a single first step!'

All relevant economic and political factors, as well as the general public, have to be fully aware that the road to a EU membership is not only a very long one, but that it is quite uncertain and painful. All those believing and saying that the European Union is somewhere behind the corner are not only mistaking, but are also leading Macedonia away from the right road to Europe.

In many fields, Macedonia has not yet made even the first step on this long road. Therefore, it should make both the initial and following steps as soon as possible, and in a more resolute and consistent manner. Naturally, bearing in mind that these steps are not taken to satisfy anyone else's but Macedonia's own needs. Having crossed this road to Europe (in some ten or more years from now), even if Macedonia is still not admitted to the Union, it will surely have a more efficient economy, greater stability, higher living standard, more democracy and, maybe most importantly, much more self-confidence and self-respect!

(end)

mils-news 9 August '95