Economy: Slovenia and Serbia

The fact is that nothing will be like it was before. The consequences of the Serbian Socialist Alliance decision of November 30, 1989 calling for an economic boycott of Slovenian goods and the ignoring of Slovenian goods already on sale are still noticeable on both sides. The two states are not at war like the other parts of the former federation but the scars of verbal offenses by politicians on both sides are very visible. Despite all the efforts, including a visit by Slovenian businessmen of Serbian origin to the Yugoslav economic chamber, nothing is going right yet.

So it isn't strange that most managers politely accepted meetings but asked that no mention be made of them or their company.

All the troubles still stem from bad policies. The two states have recognized each other in a way but there are virtually no contacts between them, let alone inter-state agreements, quotas, social security arrangements. Some companies bridged that situation with the help of their former associates like Ilirija which now markets its products in Serbia through Ilirija-Nis. There is some Rasica clothing on sale as well but company spokesmen said they do only occasional deals; nothing is regular yet.

During the past five years most companies which had intense cooperation and even depended on the FRY for raw materials and consumers were forced to redirect their efforts. The boycott of seven years ago seems to have sobered them up for the hard times that were to come. "We would have died if we hadn't turned to other markets," said one businessman, whose company was one of the biggest sugar and fruit buyers in former Yugoslavia.

The situation is also complicated by property disputes. After Slovenia declared independence, Slovenian companies lost many of their plants in Serbia.

Most businessmen complain of the lack of regulations and stability. What's the use of verbal guarantees when a ban could come after investments into a plant in Serbia.

The markets in the rest of former Yugoslavia are interesting to Slovenian businessmen but they have all opted for caution. The Rog bicycle factory and Revoz Renault dealership will attend this year's Belgrade car fair late in March. Revoz is especially interesting. It was made the sole dealership in the former Yugoslavia by Renault, but the Renault dealership in Belgrade wanted to be answerable directly to the parent company not Revoz. Politics could cause a paradox in prices which would be higher in Belgrade than if the cars were imported from Slovenia.

There are still some people around who remind everyone that cooperation is mutually beneficial: "We worked together for so many years. We know each other and we understand each other. It would be easier to deal with Serbia than Hungary. I have to admit that we have no special wish to make the whole thing public because that would damage both sides. Look at what the press did to Mura for attending the Belgrade fashion fair," said one businessman who insisted on anonymity.

Mura's spokeswoman said they did go to Belgrade but aren't doing any business in Serbia yet. She said they do have plans but will wait for everything to be resolved. "In the long term I don't think business with Serbia will happen that quickly. Not by the end of this year," she said.

I remember a friend in Belgrade who was happy to hear that Slovenia had recognized the FRY. "I'll finally be able to fix all of my Slovenian household appliances." I'm only afraid she'll have to wait a long time for spare parts from Slovenia.