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January 29, 1996
. Vreme News Digest Agency No 225
Interview: Mijat Damjanovic, political economy expert

Lawful or Police State

by Zoran Jelicic

VREME: What are the basic standards today by which we can recognize a contemporary state?

If we turn to the field of state and economy relations for the answer, then it is obvious that the contemporary state didn't stop at regulating classic relations, it has transformed so that it has expanded it's classic functions, primarily in the interest of the people. The repressive role of the state steps into the background, while those of its functions which remain as dominant have in most parts been induced by new technology. Only in such a manner could the state surmount occasional bigger or smaller crisis and to, with time and by playing an active role, prevent them. That contemporary state functions on a wide front from concentration of capital necessary for fundamental and strategic research to the protection of the environment. In that transformation state administration had to lean upon the experts for all new challenges and to solve, in a new way, the conflict between private and public interest, but not so that one or the other would in turn prevail but rather by finding a new symbiosis, that is solutions which are for the general benefit.

The differences between the individual states are not negligible...

Certainly, and it has shown that the societies that are moving ahead quickest are those that were on a higher cultural and every other level before socialism befell them. If nothing else, in those societies, after a half a century break, a larger willingness and determination is discerned for a normalization of both economy and state as well as of life in its entirety.

Capital is leaking out even from small states in which market and legal security don't exist...

Each owner of capital runs away from such uncertainties. Of course, even contemporary states have not abandoned all former zones of activity. Let's say, even today huge parts of the national capital are put aside for the military industry and arms. Even in systems such as our present one, for which we could logically presume that it would change its policies after everything that had happened, enormous means are used to finance the army and police, even despite the drastic overall impoverishment of both the economy and citizens. This can not be justified, especially because it is not motivated by a preparation for defense from a certain outside attack but rather as a means of preserving the very regime. This is very apparent in Serbia since the larger part of the funds go towards the police, while the military, in a certain sense, is left almost empty handed.

Serbia is also specific by the fact that it has all modern state institutions yet they only serve as a screen for carrying out a political will, better yet, self-will. What are the perspectives of such a society?

Unfortunately, on this expanse a longer period of democratic growth never existed. We have remained hungry and thirsty for democracy, and when you do not possess such tradition then confusing solutions are inevitable. Therefore, everything exists as if this were a democratic society, but the problem is that a lot of fiction exists. That is obvious, we don't need a serious analysis to understand that a lot of it is extracted, which means that it doesn't possess deep roots which makes fictitiousness inevitable. Pluralism in our political system isn't even closely realistic, the government of course isn't democratic and the opposition isn't prepared to truly stand up but has reduced itself to announcements made by the leaders of those parties, filling our daily life and our consciousness that way. We are living in a sluggish and inefficient state, in which people govern by some invisible rules, and the opposition raises its voice from case to case making it felt that real strength in the opposition doesn't exist. Here neither goods nor money exist, they appear as pure wishful thinking, and competition isn't sufficient even in politics. Without all that, the only thing left is for the government to, so to say, rule as it pleases. And it shall remain so until a true equality is permitted to exist for all forms of ownership, meaning, until economy is democratized, and in a certain measure, all other fields as well.

In such a context, how do you look upon the story of current interest of building a society of justice, prosperity and equal rights?

Justice in economy is too big a theme for this conversation, but I shall say that real economic competition often isn't just. However, by it, capital is made, which is partially used by the state so that it could, through social functions, correct injustice. One of the great mistakes of socialism was in its comprehension of the state as an institution of salvation which can extend general justice and prosperity to all. This was taken to its extreme so that certain states, like ours, which lived off other people's sweat, tried to solve certain problems in a more just way which still existed in much more prosperous societies. As could be seen, the attempt to provide each citizen with free elementary social security and health care failed even in the US.

How would you describe the desirable role of the state, taking into account all you have said?

Simplified, I see it changing its present course into three important fields. Modernization of the classic state activities is the first challenge - meaning everything from properly organized state services to professionalism. Experts are essential in all fields and in all state positions, socialism has given us the illusion that everyone can do anything. Second, the state has to participate in the economy as a new stimulant, but not in order to abuse its position and power which emerge from the fact that it makes laws and determines all other conditions for business operations. The same conditions must apply for all companies, and a certain effort is required to place private capital into state service instead of having it escape into gray economy or abroad. In the contemporary world a severe division no longer exists between public and private interests, contemporary and responsible states are managing to permeate those interests more and more, for the overall benefit. Finally, the field of law is the third field in which the state has a lot to do. There is no need for me to explain the meaning of a "lawful state", but I wish to remind you of the rule that where a lawful state doesn't exist, we most probably encounter a police state. The state must provide that, as well as maintain and guarantee to everyone that they will live and operate in accordance with the law.

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