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March 23, 2001
. Vreme News Digest Agency No 483
Exclusive: Zoran Djindjic writes for VREME

Proposal of an Agreement on a State Goal

by Zoran Ðinðic

In September, October and December of last year a national consensus on the democratic future of our country was finally established in Serbia. The entire nation has united over that powerful vision, as rarely happens in history.

Not much of that enthusiasm and that energy is noticeable today. Our society seems to have lost its mutual goal, as though it has divided again into interests and discussion groups. Some are threatening with strikes, others are on strike, yet others are theorizing on for and against reasons.

What is it all about?

There is no doubt, the people have toppled a dictatorship for a better life. One part of that vision has been achieved, the political one. The more important, financial, economic part is missing. Does that mean that this nation was deceived? Only one part of the nation can consider itself deceived who believed that with the arrival of a political democracy, economic prosperity will automatically follow. Unfortunately, there is no economic prosperity without a healthy economy. And our economy is on its deathbed and will need a considerable amount of time to recover.

The condition for our economic recovery is: we have to become a country which is attractive for investments. That means a fundamental restructuring of the inherited economy and society, but also a reevaluation of some inherited rights.

For example, everyone has a constitutional right to work, but currently there are only vacancies for barely a third of the work-capable citizenship. Beside that, amongst those unemployed, over 70 percent have, at most, a high school diploma. An enormous amount of investments are needed for their additional qualification. Everyone has the right to health insurance, but the health system is in ruins. Enormous investments are needed so that our hospitals can look decent. The right to a pension is elementary, but contributions towards pensions aren't sufficient. Each employee in the industry covers almost two who should derive their incomes from it, if we add pensioners, budget beneficiaries and the so-called technological surplus.

Therefore, the majority of the rights are, unfortunately, only of a declarative nature. That doesn't mean that they are unjustified, on the contrary. That only means that elementary conditions don't exist for them to be exercised. Those conditions have yet to be provided.

A radical persistence on those conditions, without the financial conditions for their achievement, leads to greater social frustrations and to a loss of necessary positive energy for changes.

In order for the economy to recover, a decisive development concept is necessary, and that means self-denial and an investment for the future.

If, in connection to this, we don't establish a social consensus, as we have established on political democracy, we will miss a historic chance. First of all, we should understand that one can spend only what one has earned. Budget beneficiaries have to be patient and to agree to limitations, not only to give the economy some breathing space but also to demonstrate our national maturity to the world. And that means, to introduce discipline, asceticism, reason. It isn't justified to go on strike because the budget is restrictive, because there is no healthy way that the budget beneficiaries (education, health, police etc.) can get more from realistic economic revenues.

Also, those who are employed in the industry have to understand that we aren 't even close to receiving wages which correspond to our human needs and standards. It is an excellent thing that our citizens are aware of their worth and their needs. However, it is wrong if they believe this can be achieved immediately.

However painful this seems, employment rights have to be changed, in the direction of greater opportunities for the owners and employers. No employer will come if the workers are on strike and if the syndicates are radical and all-powerful.

It is easy to set populistic demands and to induce people to support you.

Courage lies in telling the employees the truth. Social battles always have to do with a more just distribution. So that larger and more favorable participation in the earnings is gained, and in the social position as a whole. A legitimate reason is always: dissatisfaction with our own position, as well as privileges which someone else has, and which are unjustified.

Today in Serbia a huge majority isn't satisfied with its position, and there 's no doubt there. However, the question is who is privileged and where is the money which should be distributed more justly. Let's talk about that! Let's not only look at ourselves and our personal discontent, since everyone is right there. Let's not now assume that hidden resources exist somewhere which should be channeled over to our side by strikes and protests. Let's say where those reserves are. Who should we take from so that the principle of justness will be satisfied? The old regime used to buy social peace in two ways. By continuously producing political crisis, in which people were sidetracked from the economy. It was enough that we were alive and that our family was physically relatively safe.

The other way was - by spending the accumulated funds, falling into debt, using agriculture and other natural resources to quench the social fires. The results of these policies are well known. Not a single healthy economic branch exists. All the funds are empty which were established as reserve for the future (primarily the pension fund, social and health insurance funds). The infrastructure has been destroyed because nothing was invested in it (energy sources, traffic, water supply, sewerage system, city dumps etc.). The state doesn't have any reserve funds for financial intervention in crisis situations, for example when a certain economic branch faces a crisis due to world economic trends.

It is now up to us to get the entire system on its feet. That requires enormous investments. Let's only take the example of former Eastern Germany. It had twice as many citizens than Serbia, and let's say it was in a similar situation which we find ourselves in today. In the rehabilitation of that country, over the period of 10 years, more than 1000 BILLION MARKS were invested. If we look at the results today, we will see that they still haven 't reached the level of former Western Germany.

That means, half of that sum should be invested in Serbia in the next ten years, i.e. over 500 billion marks, or on an annual level, 50 billion. The reality is that we can't count on even a part of that sum. Not to mention the enormous support in advisory and other services which they had and which we can count on in a limited form. That's the reality. We, however, believe our people are faster and more capable of economic changes than the Eastern Germans were. However, such changes don't happen overnight. And first of all, we don't have even close financial means for an easy and painless transition.

The sequence of events is as follows. First of all, to open up international channels, through which we will join the international market of capital, technology, and through which we will open up the international market for our economy. Second, a change of the laws and institutions, in order to become interesting for larger investments. Third, a restructuring of our companies. Simultaneously, a construction of efficient and high-quality public services, in state administration, police, health, education, education of the work force.

But the most important thing is: a new social consensus on a mutual goal, attainable only through a joint effort and joint self-denial.

Our overall success depends on that factor of will, on our capability to reach an agreement on the priorities, and to then channel all of our energy into its achievement. We need a new social consensus, to postpone all disputes and clashes, we need to get down to business and to implement order. The times of economic restraint and sacrifices aren't over. The difference lies in the fact that today we are doing this for the future of our families and our country, and not for the sick policies and privileges of a ruler. And the difference also lies in the fact that today we have good prospects that our self-denial will lead us to a society in which no one will have to renounce his or her basic human and civilization needs anymore.

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