Welcome to Poverty

The reason to interview Slobodan Radulovic was a decision to scratch off three zeroes from the price-tags in the "C-market" stores. When asked to explain why they did that, Radulovic replied, "We were unable to continue to work since 1,200 cash registers in our stores could no longer take in all the zeroes which have appeared in the meantime. The cashiers would have to break down the price and register the entire amount in five or six times. This became dangerous for us and for the customers as well, as it is normal to make mistakes in such a situation, although they are not intended. Furthermore, our central computer could not cope with such large amounts, rarely do you find a price below one million dinars. But, I think we are late, that is, we should have removed 5 zeroes. I have proposed to the Governor of the National Bank of Yugoslavia that this be done as soon as possible."

What is happening in the stores now?

Supply was greater than demand until ten days ago. There was more goods than buyers, except for the demand for flour, sugar and cooking oil. However, the inflation accelerated since then, the prices remained unchanged, so that all kinds of goods were bought in large quantities, much larger than before. The prices could no longer be adapted against the changes in the exchange rate for a German Mark. Technically, we were not able to change the prices every hour, even if there were no problems with the regulations on the price control. Therefore, our supplies, even food supplies, were significantly reduced, not to mention those of other goods. According to the rough estimates, we were losing about 150,000 DM a day.

Is that how much "C-market" lost?

Yes, that is our daily loss due to a discord between the price of goods and the money. The producers are now curbing the sales, even if they are free to form the prices, because no one is able to predict the gap between today's costs and tomorrow's profits. Even those who did business as usual until now have gone away on holidays in large numbers, so that, unfortunately, we are not at all optimistic about what will happen in the up-coming weeks and months. To be more precise, I believe that supply will be smaller even than the current one as soon as in August. I am afraid this has to do with the syndrome "everything is cheap, but no place to buy it". We are on the way to ever growing poverty and black marketeering.

Are growing problems with deliveries in sight? What fields will mark a drop in supplies?

I think that we will lack everything. The meat market has fallen apart, and there is a threat that this happens to the most successful meat processing industry, because their incoming prices are raised every day, while their incomes are late to compensate for them. A number of those who are brave enough to produce and sell is on the decrease, as their are uncertain whether their profits will cover the expenses.

Did you say that the backbone of the current policy is that everything is cheap, but there's nothing to be found?

I think it is an illusion: everything is under control, but, actually, nothing is controlled. These governments have ruined what used to be Serbia's advantage. They impoverished the agriculture, the electrical industry, even, the production of domestic oil. It is the question now who benefited from maintaining the prices on the same level and creating enormous disparities. That is irrational. There are several thousand broken buses in this country, and no one will compile a program for the production of spare parts, which is not a demanding task, and the metal works are not too busy either. Everybody is waiting for somebody else to do the job, and every one is referring to some rights. As if it was God who delivered them the sanctions, or the excuse.

Isn't the state actually causing such a situation by turning the economic subjects into mere objects? Hasn't the state pushed the social policy into the firms?

That's true. But, I'd rather be held responsible for violating bad regulations than for making losses. I would prove that both the regulations and the policy do not make any sense. No one can force me to consciously make losses in my company. I will not agree to the distribution instead of the trade.

How would you explain the introduction of the price control when the hyperinflation is in full swing, especially, as it is hard to believe that there are no competent people at all in the Governments?

I have no explanation. When I talk to some members of the Serbian and the Federal Government, there are practically no differences in our assessments of the situation and about a therapy. But, the policy is ignorant. I do not know why and how, but I do know that this system totally invalidates the work and kills all the motives for finding a way out of the crisis, and for the production. I believe that our hyperinflation has to do with fear of social unrest, but the result is contrary to the intentions.

You are a member of the Serbian Parliament. The debate on the economic situation has been put off for autumn, but the Serbian and the Federal Governments have already announced some measures this week. What are they preparing?

I really don't know. But, I think that we should start with the fact that this country does not need three administrations, at least not for formulating and running a single economic policy. In my opinion, the governments do not have a variety of measures at their disposal.

What would you suggest them?

In the first place, the government of experts instead of the party government. Secondly, the government which would have six months before having to answer to the Parliament if it has not accomplished what was necessary, also including some concessions, as is the new capital from abroad. Otherwise nothing can be done to prevent an even more serious collapse. Everything else is very much like running in the same circle, if not falling into an abyss. Given all this, "C-market" will follow its own logic.

Do you have any influence on how well your stores are supplied?

Not much. At least, not on any serious production, that is the kind which is not fooling itself with surviving thanks to the black-marketeering. A producer cannot live on one successful move.