The Offer of the Group 17

On January 15 the federal government has promoted "The Economic Policy for 1997", the document which is basically an optimistic forecast of economic movements in SR Yugoslavia. The expert group of economists 17 has revealed on January 27, the St. Sava’s Day, the letter to the public about the measures for overcoming the crisis. This program of radical economic reforms assumes that "in order that the country overcomes the long-term economic crisis, moral fall and extremely difficult current position, Serbia and SR Yugoslavia need urgently conduct economic reform from the roots. The basic and only precondition to start the reform is in the crucial political changes...".

In the series of conversations on our economic reality that has already been conducted in the Vreme weekly in January, the theme has now been broadened by the document made up by the group of independent experts. Mladjan Dinkic, the coordinator of the project talks about it for the Vreme. The presentation of the issue began by his opinions on the measures that should be taken in order to overcome the crisis. Dinkic says: "The previous economic programs were unsuccessful so far because politicians did not wish to conduct them. That is why this program is intended for those political forces who sincerely wish to start the process of radical reforms. It can not be the ruling group SPS-ND-JUL, because they have been utterly compromised, both morally and as experts.

Vreme: It is obvious that your work is being ignored by the government media?

Dinkic: It is true, because they are recalculating, maybe they want to get the big picture of the program’s contents, although the political implications it brings are completely clear: their replacement. It is the realistic approach to the reform, and that is why they ignore it. Were the document bad, they would have started criticizing it long ago. However, if the media campaign broadens, they will have to react and we shall probably be pronounced traitors, because even children have been pronounced traitors by them, so why wouldn’t economists.

Are there elements of the Programs 1 and 2 within the proposed measures?

There are similarities in some details; however, Program 2 assumed limited convertibility of dinar, while we support full convertibility, which means that anyone can buy unlimited amount of currency.

Second, along with the changes in monetary policy, the assumptions are the far-reaching changes in the real sector, the restructuring of the companies, privatization and the comprehensive mechanism of financing for agriculture, which has not been elaborated so far by anyone. And not only agriculture but also industry, and that is possible only with the radical changes in the economic environment, the creation of the market of capital, stock exchanges and investment companies.

Do you expect support from the regular people and what will be the price of the reform?

We expect support. The biggest price is that the system remains unchanged, because both individuals and the state will fall further, with no perspective. The program offers the clear vision of the way out of the crisis and practically is the only precondition for better life in the future. The citizens can immediately expect the change of philosophy from the new government and the creation of qualitatively new environment which initiates the new enthusiasm. Some effects will be obvious immediately.