MILS NEWS 96-09-20

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From: "Macedonian Information Liaison Service" <mils@mils.spic.org.mk>

CONTENTS

[01] AGREEMENT ON MACEDONIAN-GERMAN DEFENSE COOPERATION

[02] INTENSIVE DEVELOPMENT OF THE MACEDONIAN CUSTOMS ADMINISTRATION

[03] MACEDONIAN PARLIAMENTARIANS AT THE CONFERENCE IN PEKING

[04] CHANGE OF US BATTALION WITHIN UNPREDEP

[05] THE FIRST RUSSIAN AMBASSADOR TO MACEDONIA ANNOUNCED

[06] MEMBER OF THE BIG ELECTRICITY SYSTEMS ORGANIZATION

[07] YUGOSLAV REACTION TO TALKS ON FORMER SFRY RESERVES

[08] GREEK SATIRICAL PAPER 'PONDIKI' ON THE ACTIVITIES OF 'RAINBOW'

[09] PDPA LEADERS WERE NOT INVITED TO TIRANA BY MEKSI

[10] CURRENT ECONOMIC SITUATION IN MACEDONIA

[11] ON THE OCCASION OF THE GOLDEN JUBILEE OF PENSIONERS UNION

[12] LIBERALS WILL PARTICIPATE IN THE LOCAL ELECTIONS ALONE

[13] MACEDONIAN CHESS PLAYER RISTO NICHEVSKI PASSED AWAY

MILS SUPPLEMENT

[14] 'Bread and Salt' ('Puls', 20 September, 1996)

MILS NEWS

[01] AGREEMENT ON MACEDONIAN-GERMAN DEFENSE COOPERATION

The high German official was received yesterday by President Kiro Gligorov of Macedonia, who said this and the recent visit of German President Roman Herzog were showing the permanent interest of the two countries in development of their friendly relations.

Berndt Wiltz had a meeting with the Prime Minister Branko Crvenkovski also, during which the high level of political connections were said to need valorization, especially in the field of economy.

Secretary Wiltz met with Macedonian Foreign Affairs Minister Ljubomir Frchkovski, as well.

[02] INTENSIVE DEVELOPMENT OF THE MACEDONIAN CUSTOMS ADMINISTRATION

[03] MACEDONIAN PARLIAMENTARIANS AT THE CONFERENCE IN PEKING

[04] CHANGE OF US BATTALION WITHIN UNPREDEP

[05] THE FIRST RUSSIAN AMBASSADOR TO MACEDONIA ANNOUNCED

[06] MEMBER OF THE BIG ELECTRICITY SYSTEMS ORGANIZATION

Yesterday, Greek public company 'DEI' signed a contract with Macedonian Electricity Industry for import of electric power, about $1,830,000 US worth. Opposition paper 'Elefteros Tipos' read, according to 'Makpress', that Greek needs for electricity had been so big that 'DEI' management had to 'close the eyes' for the name 'Macedonia'.

Meanwhile, it was presented at the steam power plant REK Bitola that it had produced over 3 billion kWh electric power during the first eight months of this year, which is far more than planned. Its production supplies 70-80% of needs for electricity in the country.

[07] YUGOSLAV REACTION TO TALKS ON FORMER SFRY RESERVES

Meanwhile, 'Makfax' agency reported yesterday that foreign currency reserves of former SFRY, deposited in several French banks, would be 'frozen' during the next week, following the request of Slovenia. In fact, Slovenia had asked from the Court in Paris to demand from the nine French banks, in which about $600 million worth reserves are deposited, to report on these accounts. Also, Slovenia is trying to prove in court that part of foreign currency reserves of former SFRY had been transferred on an account in the Bank of Nicosia on Cyprus.

[08] GREEK SATIRICAL PAPER 'PONDIKI' ON THE ACTIVITIES OF 'RAINBOW'

[09] PDPA LEADERS WERE NOT INVITED TO TIRANA BY MEKSI

[10] CURRENT ECONOMIC SITUATION IN MACEDONIA

During discussions with Macedonian entrepreneurs in the Economic Chamber, it was said that increased industrial production of 3.3% was a result of the financial weakness of the economy. It was pointed out that export income had been 10.8 index points lower and was making only 15.2% of the total income. They said the privatization process was going on for too long, that judiciary was non-effective regarding the payment demands, that foreign investments were unsatisfactory and that competent institutions should protect the import from low quality goods and reexamine the interest rates policy.

Macedonian Statistics Institute official data are that industrial production in the period from January to August 1996 in Macedonia has increased for 3.3% compared to the same period last year. It is a result of the increased production of reproduction materials for 6.4%, which makes 62% of the total industrial production. Non-ferrous metallurgy production has also increased, as well as ferrous metals processing, transport means and electric industry means, which all together make 22.1% of the total structure. The analysis of 32 industry branches showed that production had raised in 13 of them in the period from January to August 1996. They make 37.3% of the total industrial production.

[11] ON THE OCCASION OF THE GOLDEN JUBILEE OF PENSIONERS UNION

As alleged, during the few last years, about 200 pensioners were registered each month, the pensions are usually two months late, and the employed-pensioners ratio is 1.9 :1 for the employed. One of the unpaid pensions had been paid in monthly installments, Macedonian Television reported. Today's issue of 'Vecer' daily reads that over 125,000 pensioners, i.e. about 57%, in Macedonia have received the lowest pensions of up to 4,000 denars, while only 0.2%, i.e. 450 pensioners have received the highest pensions. Average pension in the country is 5,670 denars, and average salary is 8,800 denars.

[12] LIBERALS WILL PARTICIPATE IN THE LOCAL ELECTIONS ALONE

It was also decided not to exclude the possibility for coalitions to be formed for the second round and to examine the possibilities for other forms of closer cooperation on the level of municipal organizations. Unofficially, A-1 Television reported that Democratic Party had in principle supported the proposal of Liberals to support the mayor candidate with most votes after the first round.

This TV station also reported that negotiations regarding the coalition between the Democrats and VMRO-DPMNE had been temporarily stopped, due to the dividing of mayors' positions, as both parties were avoiding the municipalities that they considered to have little chances to win.

Information presented by VMRO-DPMNE sources said this party had not been contacting with the Liberal Party for longer period already, regarding an eventual cooperation at the local elections.

[13] MACEDONIAN CHESS PLAYER RISTO NICHEVSKI PASSED AWAY

MILS SUPPLEMENT

[14] 'Bread and Salt'

('Puls', 20 September, 1996)

The new Programme for Social Security started to be applied from 1 July, 1996. The new criteria were introduced and the welfare aid was calculated according to statistic data and the governmental funds intended for that. This year, DM 90 million of the national budget have been put aside for 60,000 people on welfare. The figure might seem comical, but when the facts and statistical data are stated, it becomes a tragic one. The information say that 51,000 people are on welfare at the moment, i.e. each tenth family in the country, which leaves another 9,000 places still free. The new (and most numerous) dismissals from jobs, which create most of those who ask for welfare aid, are expected to take place till the end of the year. There are some pessimistic forecasts that the current number of 51,000 people on welfare might be doubled soon. And, as mentioned before, the Ministry of Labour and Social Security can meet the needs of 9,000 only.

After careful reconsidering of these facts, it becomes obvious that it would be difficult for Macedonia to declare itself a socially secure country, simply because there is a great clash between needs and offers. Those who had designed the new criteria said they were doing it according to European norms. But they forgot that European standard and budget are necessary for them to be applied. In this way, they made those who had been hoping to nothing for quite a long time to feel a little optimistic now, by promising that everything will be settled down with the new $14 million US worth credit given by the World Bank for social security reform in the country. However, the calculation appeared to be wrong.

Social workers, those in charge of preparing the new Programme for Social Security, first drew the line of poverty, i.e. they stated who should eat what and how much. In other words, the poverty line is equivalent to the minimum needs for calories with minimum money spent for them. The European trend is that an adult needs 2,700 calories daily, which if calculated in denars gives the amount of 25,414 denars of annual expenses for food of the population in towns and 21,271 of those in villages. After utilities expenses are added to those sums, which are 18,081 denars in towns and about 3,500 denars less in villages, the total amounts are 43,495 for town population and 35,556 for village one. The town-village dividing was made also according to European norms, which say that life expenses in towns and villages are different.

Those in charge of data processing and fixing the new level of social aid had many problems as they could not harmonize the needed with the offered. The European standards suffocated in our reality and vice versa. The final result was that an adult living in a town should receive 3,625 denars a month, and one living in a village - 2,963 denars. But, adjusted to the governmental funds, the basis for establishing the level of social aid is 50% less than the European standards. Therefore, the above mentioned amounts are reduced to a half: 1,812 denars for town population and 1,482 for village one. The second adult in the family is given 60% of the basic amount, the third - 45%, the fourth - 30% and the fifth - 15%. As for the children, the first is given 40% of the basic amount, the second 30%, and the third and fourth together - 20%. There is no aid for more than four children.

The aid is given to those families which total income is lower than the amount of aid established for them. Those families which do not have any income will be given the total amount of social aid, and those which do have certain income will be given additional funds to reach the minimum level.

It is quite obvious that a family can not survive with those amounts. There are paradoxes, such as the following one: the money separated as contribution or salary tax of an employee are later given back to him _ her as social aid. The number of those who are on welfare and simultaneously its contributors is not small. Such a policy had been applied for several years already. In fact, the money collected are divided and allotted to a number of users. Throughout the world, the policy is different: the money are 'reproduced' and most often invested in new employment. This can be hardly achieved in Macedonia for the time being, since the money put aside for the welfare are too little for new jobs to be opened. The situation becomes much clearer when to this we add the fact that the need for work force had reduced for about 25% in the last two years.

All the above mentioned make the outline of the social security situation in the country. The figures and words show the realistic situation, and those who are or will be on welfare are hoping for some better times. But they also ask for how long this will last. The Government has been silent, and, as alleged, looking for new solutions. What kind of solutions they would be nobody knows, as the final amount has been fixed. There are no chances for it to be increased. Four years ago, when social aid was introduced in Macedonia for the first time, only 8,000 people were on welfare. This figure had increased to 51,000 in the meantime. In the past, the unemployed were the main users, but today there are many pensioners and employed people. Namely, 35,000 formerly employed people and workers of bankrupt enterprises are on welfare nowadays. One can say that the new programme did not introduce great changes in the amounts given. The news is the introduced poverty line, which is of no use for anybody. As well as the European standards. But Europe is far ahead us, or we are far behind it.

(end)

mils news 20 September, 1996

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