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MILS: News from the FYROM, 97-08-11Macedonian Information Liaison Service Directory - Previous Article - Next ArticleFrom: "Macedonian Information Liaison Service" <mils@mils.spic.org.mk>CONTENTS
MILS NEWSSkopje, 11 August, 1997[01] AND TODAY'S WEATHER FORECAST...according to Macedonian weekly `Puls' does not promise a `Prague Spring" or a `Balkan Summer' of Democracy before the heat of the general election autumn is to hit us. All this is to be attributed to the low as regards the Government's and President Gligorov's rating with the public - in spite of his promise on Ilinden that `nobody will ever condition what we are to call ourselves' (well, `nobody' is not the one trying to do so.'). But, if the truth be known, the `gray old wolf' handled himself with remarkable composure during the `Mechkin Kamen' storm front - in spite of the fact that he had been exposed to showers, not rain but alcohol landing in his face (the offender is currently facing charges).What remains puzzling though is the following: if this is the way political disputes are to be carried out in Macedonia in the future, with the national flag as the doormat, are we really entitled to cause a fuss about minorities liking a different flag better than one which does not seem to be respected by ethnic Macedonians? In addition to the collective and individual political feedback, we have also been the witness to first-rate examples of tawdry coquetry - as for instance the request for a parliamentary session on events in Krushevo. What is the purpose of a discussion at this level when it is common knowledge that it will take two more months to determine what law enforcement should/could (NOT) have done? In this context, one only needs to refer to the police report in which `.an affiliate of the IMRO-DPMNE' was listed as the offender. The latter will undoubtedly face the consequences for his doings - but is it fair to convict an individual by besmearing a party? We all know that the Ministry of the Interior cannot help but `name things'. it took a long time for them to abstain from traditions like `Ljatif Ljatifi, a member of the Albanian ethnicity, has been apprehended for the commitment of such-and-such a crime.' maybe we only misinterpret events, or perhaps have been negligent in browsing through our `homework': but those involved in the `TAT' banking scandal did not appear to be members of any party. Probably we will be able to enlighten ourselves further on this matter during the protests scheduled for 21st August (the President and the PM have both been invited to attend). At `Mechkin Kamen' President Gligorov attempted to convey that everything possible would be done to make Macedonia a more attractive investment partner. Thus even if we miss out on `Audi' there will always be another economic giant from Germany - such as `Dr. Oetker.' Would there but be more such international doctors to cure us of our political and economic ailments. Meantime, we are being given dredges to clear away our `rocks' and put an end to `waste land.' At `Mechkin Kamen' (`Bear's Rock') - the calm between storms. [02] AND MORE ON THE `WEATHER'.Climatic changes - `Nova Makedonija' prophesizes - are about to occur with the Parliament resuming its work on 24th August, with a sequel to its 74th Session, after only 10 days of vacation (i.e. almost an entire sick leave.). Thus the public will eagerly await the discussing of events at Gostivar and Tetovo, i.e. the verdict on whether police violated its authorities. Besides this, the SDSM has leaked that it may offer the preliminary version of the Member of Parliament Election Act (probably towards the end of the month).Opposition parties, such as the IMRO-DPMNE and LDP are therefore not too far off the mark by announcing to lobby for early elections during the 2nd half of August, while PM Crvenkovski intends to spend the rest of the summer in debating legal provisions on elections. Other heroic gestes will include: the approval of forestry projects, wildlife monitoring (there is no nice phrase for `hunting'.), energy production, insurance projects, public utility issues and the office of the Ombudsman. MPs will also have to vote on the Enforceable Procedures Draft-Bill. This political autumn - at least according to the opposition (with IMRO-DPMNE as the lead) - will pass in the sign of protests and demonstrations. The LDP also declares itself resolved to insist on early general elections WITH new legal norms. [03] STOCK EXCHANGES WAITS FOR PLUNDERING TO END`How do you intend to attract international capital, when your economy is totally undeveloped and with the little you have left - and this is the most horrible twist to it - you are by law prohibited to trade, as the `criminal' statutes of most privatized enterprises do not allow the trading of company stocks at the exchange or outside the enterprise. Your stock exchange is utterly insolvent and your Government is garnishing the entire matter by `kamikaze' moves - such as the privatization of your City Shopping Center.The Government only knows why it started issuing shares and then skipped to selling the `GTC' store by store, thus burying stock trade in Macedonia over a longer term', stated `Wall Street Journal' reporter Robert Frank recently. This is a mild reflection of how both domestic and international experts see stock trade in Macedonia. `Every time an international investor wants to place capital into Macedonia, he will ask where and from whom he can buy stocks. What will you answer?' asks Robert Frank upon addressing the catastrophic state of affairs at the Macedonian Stock Exchange. Nikola Gruevski, a stock broker, attributes this to a lack of political resolve on the part of the Parliament and the Government. Thus whenever a Macedonian employee wishes to sell shares of his company he owns, the only legally admitted buyer is the `pseudo' management team which also determines the price of each share. The proverbial icing on the cake lies in the fact that the employee may even get the sack if the price is not accepted. All this constitutes the `2nd' more subtle privatization. The third one - an international financial expert told `Dnevnik' - will occur in a few years once executives decide to sell for hard cash. Till then the Stock Exchange is not likely to work, stock trade will be restricted to a minimum (as it also requires the publicizing of a party's bonity) and international capital - will remain international. [04] POLE VAULTING WITH A TOOTHPICKThe National Statistics Office presented the most recent data (January - June 1997) on economic trends in Macedonia. This embodied a solid foundation for drawing the conclusion that from a macro-perspective, the objectives for 1997 will not be achieved. This above all refers to the growth in industrial production (24.% instead of the `optimistically scheduled' 5.5.%), which could at best achieve a 2.5% growth rate after the third quarter of this year, should nothing go wrong in the metal processing sector, in the production of electrical appliances or the food processing industry.Drawbacks have been registered with respect to international trade, with a 2.6% improvement (471 million dollars) between January and May 1997, while export should have been marked by an annual growth rate of 10%! So far import has increased by 5.9% - again against an ideal annual rate of 2.5% Employment has taken a dive by 4.9% over January - May 1997. This means a total of 331 777 people on the streets. This March 249 928 people have been looking for work, a rise by 6.9% compared to March 1996. Another rise (by 2.2%) has been registered with regards to consumer prices over the 1st half of 1997 in comparison to December 1996, and due to the devaluation of the denar the expected annual inflation rate has been `doped up' to 6.3%. Whether this will be enough, remains to be seen by the price trend for food and electricity. [05] `NAY' TO CURTAILING WITHIN THE SOCIAL SECTORThe Federation of Trade Union Organizations of Macedonia (SSM) has made it clear these days that its opinion with respect to the most recently proposed pruning of work force rights (within the Employment Relation Act) is by no means unknown. It severely condemns the severe cuts as conditions in general have made the situation of employees hard enough anyway. Such views had also been aired to the IMF and World Bank, as their representatives required their input.[06] LABOUR PARTY CRITICIZES GOVERNMENT FOR CURTAILING EMPLOYEE RIGHTSThe Labour Party addresses severe words of criticism in its most recent press release to the Government for allowing the restricting of employee rights, while adding that so far the labour force has been the greatest loser of society. `At the same time criminals and so-called businessmen are making a fortune with what used to belong to everybody', the release continues. The Labour Party further announces the possibility of strikes, meetings and social unrest - including more radical measures, while advising the Government to put a halt to a incorrect practice by passing regulations on stating the origin of assets in dubious cases. Should these restrictive measures ever be implemented and Trade Unions remain as lax and passive, the Labour Party claims, all consequences are to be borne by the incumbent Government which is placing Macedonia into a setting resembling South America fifty years ago.[07] US INTERESTED IN BORDER DEMARCATIONUS Under-Secretary of State Robert Gelbardt stated that `the US has expressed considerable interest in the border demarcation between FR Yugoslavia and Macedonia as US troops are stationed within UNPREDEP in the latter' during his recent talks with the Chief of Staff of the Yugoslav General Staff, Gen. Momchilo Perishikj in Belgrade. Without revealing any further details on this meeting, Gelbardt aired his content with the reduction of forces concordant to the Dayton Peace Accord.[08] GREEK VISAS TO BE OBTAINED FASTERDimitris Dimitriyadis, the Vice-President of the Thessaloniki Chamber of Commerce, urged Greek Public Affairs Minister Yorgos Romeos to speed up the procedures for Macedonian nationals to obtain country clearances for Greece - `Makfax' reports. The past few days at the border between both countries have been characterized by traffic jams and chaos which, in the opinion of Dimitriyadis is to be ascribed to a lack of hardware at the `Evzoni' border crossing and the fact that 60 police officers had been reassigned to Athens during the Athletics World Championships.[09] 15 AUTOMATIC RIFLES `IN THE BAG'Two days ago at 04 35 h Macedonian border patrol troops confiscated 15 `Kalashnyikov' rifles (made in China), 31 clips and 1 703 rounds of 7.62 caliber ammunition near OP `Radika. The MOD reveals that after having detected a group of 10 Albanians who had entered the country illegally (3 km into Macedonian territory), Macedonian troops has issued verbal warnings and then fired warning shots. The trespassers then left the weapons behind and retreated back to Albania.[10] WILL YOU STILL LOVE ME TOMORROW?Todor Petrov and Vlado Ralev - leading figures of the two World Macedonian Congresses (the former with its seat in Skopje and the latter in Geneva) - are reported to have signed a unification statement in Skopje last Friday. The Chairman of the Geneva-based Congress Kalcho Magdeski immediately accused Ralev of `conducting his private business inspired by his political ambition, denying him the authorization to sign such document. Ralev energetically denies all accusations, replying that the statement - which cannot be effectuated until the structures of both Congresses accept it - merely represents a reflection of moods prevailing in Macedonia and throughout the Diaspora. Magdeski counters this with his confusion on `not being aware of any such ventures as the Chairperson of the World Macedonian Congress in Geneva.As is the case with our Executive Director in Skopje, Antonio Mitrev, and the eight members of our Executive Council. We had to hear this on the news or read it up in the papers. I have also contacted the remaining members of the Executive Council (John Bitov in Toronto and Evelyn Denow and Aneta Gibson in the UK), all of them were quite surprised by Ralev's decision.' Ralev is decisively rejecting all accusations brought forward by Magdeski: `In terms of what will happen to the Congress, its structure and its funding, registration and other relevant issues - these will be addressed at its formative assembly in the year 2000, once it has become obvious whether all prerequisites (listed in the signed statement) have been fulfilled. Should both Congresses accept the terms of this statement which merely expresses an intent for unification. I believe that it reflects the prevailing mood among Macedonians in the Diaspora to put an end to all division. This makes all accusations and attacks even less comprehensible.' [11] PROTEST OF TRUCK DRIVERS OF WESTERN MACEDONIADiscontent with conditions set by `Makedonija Soobrakaj' as regards the obtaining of `TIR' labels, the truck drivers of Bitola have scheduled a protest meeting at the banquet-hall of the `Epinal' Hotel at Bitola at 19 00 h on Wednesday, 13th August. About 100 lorry drivers of this city are to be joined by colleagues from Prilep, Resen, Ohrid, Krushevo, Kichevo, Demir Hisar, Struga and Kavadarci. Thus more than 200 drivers and owners of freight vehicles are expected by the organisers who intend to establish a regional body for Western Macedonia. This is to facilitate the addressing of problems imposed upon them via dialogue, protests, public meetings and other means of pressuring.[12] INTERNATIONAL TRADE AND PAYMENT BALANCE - PART 6 (G.Bishev)The attracting of international capital in shape of direct investments is of particular importance to the Republic of Macedonia, not only from an aspect of complementing domestic investment potential without increasing indebtedness, but primarily because of the import of technology and know-how - usually closely linked to such investments. In this context several factors have a positive impact on creating a favourable climate to attract international investments into the Republic of Macedonia: a/ the resolving of the crisis in the wider region; b/ high price stability, in addition to a stable and transparent macro-economic policy; c/ an inexpensive and qualified labour force which would gain the Republic of Macedonia a significant advantage in terms of competing for international capital in shape of direct investments; and d/ a stimulating legislative framework incorporating a series of alleviations and discounts for international investors. Thus the provision granting tax alleviation to international investors in possession of more than 20% in shares of one enterprise, or in case of reinvesting yields into capital goods, etc.Complementary to this, the Customs Tariff Act provisions have been made for customs duty exemption in case of importing equipment or elementary means - provided the investor agrees to an at least five-year investment scheme and owes more than 20% in shares of the company. This favourable codification of international investments is being completed by the Hard Currency Transactions Act allowing the unrestricted transfer of funds to international investors. At the same time, the Republic of Macedonia is committed (as indeed it will remain so in the future) to the eliminating of comparative shortcomings with respect to other countries undergoing transition. Such steps have already been initiated by encouraging the ratification of free trade zone agreements with certain countries, since these processes of regional integration are to amend for the deficiencies brought about by a small economic zone via expanding the potential absorption capacity of the market. In order to, however, utterly complete all institutional and legislative networks of interest to potential international investors it has proven necessary to address several other issues, such as the low efficiency rate in terms of implementing financial claims and mortgages through the judiciary system, the rights of transferring funds, etc. Bearing in mind the need for capital on the one hand - and the small monetary zone and limited potential of monetary instruments to sterilize capital influx on the other - it appears ideal to reach an average annual rate of app. 100 million dollars in terms of direct international investments within the Republic of Macedonia over the next five years. In this context it should be taken into account however, that the adopting of a liberal policy towards direct international investments should not impose the `a priori' surrender to market whims as a means of attracting investments - regardless what their value may be. In order to link the attracting of international capital to the achieving of domestic economic structure objectives, it is necessary to blend the liberal approach towards direct international investments in the Republic of Macedonia with a clearly defined strategy on global structural adaptation. The Industrial Sector Basic Traits of Current Conditions During the transitional period the industrial sector has been entering a stage of stagnation as regards production, complimented by an unfavourable production structure, a high level of technology depreciation, insufficient export outcomes, a high dependency on import, a long term lack of investments, the generation of considerable losses during the labour process and a high redundancy rate. The industrial structure is prevailingly marked by the production of raw materials and reproduction materials ( in 1994 this component constituted about one third). A number of facilities have been built in the branches of heavy and light metallurgy alkali chemistry; the production of yarn and fabrics and in other branches of raw material production. These facilities considerably rely on import, while the final products were predominantly intended to meet the demands of the market of the Former Yugoslav constituents. Heavy metallurgy has been marked by relatively large steel mills into hot and cold rolled sheets and bands, into welded pipes and into cold rolled profile beams. This production segment has not been paralleled by the development of the primary sector. Therefore it has been necessary to import considerable quantities of blocks, or enter Lohn - Agreements i. e. complete the production for international partners. In spite of the fact that the production process for several types of sheets and bands has been mastered, the variety of these products fail to meet the demands of the conglomerate consisting of equipment production, of permanent consumer goods. Thus certain types of steel are still being imported. Light metallurgy is marked by the construction of the mining facilities processing lead, zinc and copper ore. This has been complemented by a lead and zinc smelting works and several processing enterprises in order to achieve the valorization of these metals. The quality of obtained ores, however, does not correspond to the production capacity of the smelting works. This entails surplus of concentrated lead and a deficiency of concentrated zinc. The former is being processed in neighboring countries, while the latter is being covered via import. Copper extracts are also being processed in neighboring states. The production of iron alloys is based on the import of chrome, charcoal and other raw materials. The products are then being exported as metal reproduction materials. In addition to this, there are mining and smelting works capacities for nicked and ferronickel in the country, which are not being processed into final products in Macedonia. Due to either a lack in quantity or efficiency as regards processing facilities, most of the metals are being exported as primary / half - finished products. This entails a lack of valorization effects. The prerequisite amount of aluminum to maintain the sustainability of processing facilities, is being procured via import. (to be continued...)mils news 11 August, 1997Macedonian Information Liaison Service Directory - Previous Article - Next Article |
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