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MILS: News from the FYROM, 97-08-22

Macedonian Information Liaison Service Directory - Previous Article - Next Article

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


CONTENTS

  • [01] BULGARIAN ATTITUDE NOT CONDUCIVE TO `FAIR WEATHER'
  • [02] OLIVE BRANCH EXTENDED...
  • [03] SETTING THE RECORD STRAIGHT
  • [04] ELISABETH REHN IN MACEDONIA NEXT WEEK
  • [05] MINISTER UNKOVSKI AT LERIN TOMORROW
  • [06] NO CATCH TO THIS DEAL...
  • [07] THERE IS SOME GOOD TO THIS...
  • [08] A PATCH OF SUNSHINE AFTER MONTHS OF CLOUDS
  • [09] `EMO' AND `SIEMENS' SIGN COOPERATION DEAL
  • [10] PHARE: `NO HUMANITARIAN AID WAS SOLD'
  • [11] THE NATIONAL STRATEGY ON THE LONG-TERM ECONOMIC DEVELOPMENT OF THE REPUBLIC OF MACEDONIA: THE BASIC STRUCTURE OF ECONOMY - PART 15

  • MILS NEWS

    Skopje, 22 August, 1997

    [01] BULGARIAN ATTITUDE NOT CONDUCIVE TO `FAIR WEATHER'

    `Quite recently we have been able to witness a surprising twist as regards the behaviour of the Bulgarian Gvt. which presented itself as pro-European during the election campaign - thus generating positive feedback not only form our Gvt. but the Macedonian public in general. Ergo previous statements on Macedonia and its people, the Macedonian language and especially the Macedonian minority in Albania do embody an unpleasant surprise indeed. This is not the most suitable approach, but rather a regression into the past.

    The international community has already made it clear that the Bulgarian attitude is not exactly conducive to an improvement of relations in the Balkans', states Defense Secretary Lazar Kitanovski in an interview for `Nova Makedonija.' Upon delving into the imposed language-issue, Kitanovski said that it was the Bulgarian side which had all the problems and the latter had to be addressed within the country. As this however also complicates the signing of bilateral treaties for official Sofia - he adds - it occurs for the first time that one state formulates provisions outside international standards on this subject-matter. When asked whether Bulgaria could possibly impose mediation by a 3rd party, Kitanovski stated that Macedonia would not accept mediation where no conflict exists: `The Macedonian language exists, it is codified within the Constitution and we cannot expect somebody to accept this or discard it.'

    [02] OLIVE BRANCH EXTENDED...

    ....by the new Socialist Gvt. of Albania which committed itself to `a policy of good neighbourliness and dialogue with all its neighbours', as Albanian Head of Diplomacy Pascal Milyo for Albanian National TV. The Foreign Secretary further added that his country would endeavour to resolve all conflicts peacefully - through interaction and understanding rather than confrontations. Milyo also stated that the new Albanian Gvt. based its position on integration and considered it for the benefit of his people to enter regional engagements founded on reciprocity whenever the opportunity arose. Milyo further hoped that the same commitment to dialogue and non- aggressive solutions would be exhibited by neighbouring states though statements of good-will which would foremost be intended for Albanians on Kosovo, in Macedonia and everywhere.

    Following the statements on regional relations given by President Redzhep Meydani and PM Fatosh Nano, this most recent address by Pascal Milyo creates a positive climate in Tirana with respect to its neighbours. MTV reported that Albanian media speculates that good bilateral relations are one of the prerequisites imposed by the international community for EU and NATO integration. Besides this Foreign Secretary Pascal Milyo met the Macedonian Ambassador to this country H.E. Amb. Nikola Todorchevski to facilitate the normalization of the functioning of the `Kjafasan' and `Blato' border checkpoints at the Macedonian-Albanian border.

    [03] SETTING THE RECORD STRAIGHT

    Radio Tirana recently assessed the representation of Albanians in public institutions and other domains in Macedonia as insufficient and affirmative of Skopje's discriminatory policy towards an ethnicity comprising over 40% of the population... During the same broadcast the Tetovo correspondent accused authorities of zealously guarding statistic information on the share of Albanians within public institutions. Similar views had been disclosed around 10 days ago by Sefedin Haruni (PDP), also Chairman of the Parliamentary Commission on Inter-Ethnic Relations, during an interview for VOA.

    This Tuesday `Nova Makedonija' published statistic data in an endeavour to create a realistic picture of these issues. Outcomes of the extra-ordinary census conducted in 1994 ( the regular 1991 census had been boycotted by the Albanian minority) showed that 1 945 932 people lived in the Republic of Macedonia. Of these 1 295 964 (66.4%) are Macedonian, 441 104 (22.7%) Albanian, 78 091 (4%), Turkish, 43 707 (2.2%) Roma, 40 228 (2.1%) Serbian, 8 601 (0.4%) Vlach and 38 309 (1.9%) had a different ethnic background. Throughout the 1st parliamentary elections in Macedonia (1990) 23 or 19.2% of the MPs were Albanian and in 1994 there number changed to 19 (15.8%). This has been the result of the participation of PDP within the incumbent coalition.

    The publication of the Ministry of the Interior `Facts on Nationalities in the Republic of Macedonia' illustrates the state of affairs in some of the most gullible Gvt. depts. According to this document in 1990 the quota of minority representatives in each dept. varied between 1.5 and 2% while further developments to this trend were to be expected. It is also mentioned that within the Armed Forces of Macedonia the involvement of Albanian troops moves between 16 and 20%, the share of junior officers amounts to 5.14% (2.8% Serbian, 0.4% Turkish...), while 16.6% of all ARM generals are minority representatives, in this case all Albanian. 12% of the first class to graduate at the Military Academy in Skopje are Albanians, 1% are Turkish and Serbian respectively.

    Within the Ministry of the Interior nationalities constitute 8.7% of the staff, with the note that over the last two years this percentage has been doubled. To improve conditions further, this Ministry has also introduced a 22% quota for minorities at the Police Academy. Of this quota 50% has been reserved for Albanian cadets. Statistic data also reveals that 7% of the staff at the Ministry of Education are affiliates of different minorities.

    At the Pedagogical Institute of Macedonia this quota amounts to 11% (9.4% Albanian). At the Foreign Office 9.3% of all employees are Albanian and 16% represent different minorities. At the Elementary Courts of Macedonia of 447 judges 87% are Macedonian, 6.9% Albanian, 2.5% are Vlach, 1.8% Serbian, 0.6% Turkish.

    At Appellate Courts of 88 judges 88 are Macedonian, 9.1% Albanian and 2.2% are Serbian and Turkish. At Macedonia's Supreme Court 20 justices are Macedonian, 4 Albanian and 1 Vlach. The Justice Dept. underscores expertise as the main criteria upon employing minority representatives. This may ergo account for low percentages, for example there are 350 Albanians who have graduated at Skopje's School of Law, but only 90 of them have passed their bar exam.

    [04] ELISABETH REHN IN MACEDONIA NEXT WEEK

    From Wednesday to Friday next week the Special Rapporteur to the UN Human Rights Commission on Former Yugoslav constituents, Ms. Elisabeth Rehn, is to visit Macedonia. According to the UN Human rights Office in Skopje this stay is to facilitate the compiling of the final report on Macedonia (due by the end of September). It has not been motivated by events at Gostivar as it has been rumoured in public. During her visit Ms. Rehn is to be received by President Gligorov, PM Crvenkovski, four Gvt. Ministers (for Foreign Affairs, the Interior, Education and Justice), the Ombudsman, the Head of the `UNPREDEP' mission and representatives of other inter-governmental and non- governmental organisations, e.g. the Helsinki Committee for Human Rights and the Gostivar-based Democratic Forum. It is common knowledge that this April the Macedonian Diplomacy requested that Macedonia be excluded from the mandate of Ms. Rehn, while the UN Human Rights Commission asked Ms. Rehn to complete her final report on our country.

    [05] MINISTER UNKOVSKI AT LERIN TOMORROW

    Culture Minister Slobodan Unkovski is to attend the opening of the culture festival `Prespa `97' (held on the Greek side of Lake Prespa this Saturday and Sunday) upon invitation of Greek Culture Minister Evangelos Venizelos and Greek MP Yorgo Milyanis. The event will also incl. a press conference of the Culture Ministers from Greece, Albania and Macedonia on the topic `Perspectives of Cultural Cooperation in This Part of the Balkans.'

    [06] NO CATCH TO THIS DEAL...

    ....could have been the summary of the `Audi' press release sent to media in Macedonia. `AUDI had the intention to construct an assembly facility in Skopje which would have engaged local suppliers, while the Macedonian side was asked to provide the infrastructure and development property which would have allowed the expansion of the factory. During negotiations none of the conditions posed by us were unknown or unique with reference to the international community.

    It has further been stated that the A-3 Project did not reach a successful closure since the Macedonian Gvt. deemed some of the provisions non-feasible...'AUDI endeavoured to obtain the Macedonian certificate of origin for produced A-3 vehicles in order to ensure export into Macedonia and other surrounding non-EU countries - as the domestic market in Macedonia is small and ergo not very profitable. In order to change this, both for us and the Macedonian suppliers, it was also intended to produce components for the `Volkswagen' group and import duty tariffs were lowered outside Macedonia. Yet this came not to fruition.' `Audi' sources further stated that two years and millions of funds had been squandered on negotiations.

    [07] THERE IS SOME GOOD TO THIS...

    ....'this' being the most recent economic measures introduced by the Gvt. - at least according to Gvt. Vice-President Dimitar Buzleski and Foreign Secretary Blagoj Handzhiski. During a meeting with Pehchevo businessmen - MTV reported - both statesmen presented the following data: over the recent period the inflow of means into state / social funds has been increased considerably, as has been the case with the influx into the state budget. Revenues in the economic sector have risen by 6.4%, profits grew by 19% and net revenues by 4% for businesses. Both officials also delved into provisions recently effectuated by the Gvt. on book- keeping and income. On this occasion Vice-President Buzleski emphasized that of a total 16% inflation incurred by the denar-devaluation 10% were to affect the economic sector while 6% were to affect consumers by the close of this year. Besides this the executives of Pehchevo aired prevailingly positive views on recent Gvt. measures, at the same time asking for funding to `kickstart' several facilities facing liquidation at the moment.

    [08] A PATCH OF SUNSHINE AFTER MONTHS OF CLOUDS

    ....has been the latest forecast out of the National Statistics Office. After a long period of negative trends, the Macedonian economy has finally shown some nominal and factual signs of improvement over the 1st half of 1997. Revenues in this period amounted to 2.7 billion denars, with a tendency for further growth at an intense pace and in spite of still existing losses (9.7 billion denars) which were marked by a slower dynamics (a growth rate of 12.3%).

    The several industrial branches bringing about this recovery (and constituting 66.4% of overall production) are: the alkali chemical production industry (15.3% growth rate), chemical products processing (13.4%), the production of electric appliances and machinery (10%), the food processing industry (8.8%), heavy metallurgy (2.5%), etc. The bottom spots are still being occupied by the textile industry. Results after the 1st half of this year have also confirmed the private sector as the most efficient one, i.e. those 765 companies which have already undergone ownership transformation. Their income is almost equal to 1996, but their revenue increased by 14.8% while net revenues have risen by 44%.

    [09] `EMO' AND `SIEMENS' SIGN COOPERATION DEAL

    Yesterday Ohrid-based `EMO' signed a technical cooperation deal with German `Siemens' - the Macedonian Radio reported. Both companies agreed to join forces by licensing the production of 12 and 14 kW gas distribution components. Imminent treaties are being negotiated on a wider range of products (electric equipment)

    [10] PHARE: `NO HUMANITARIAN AID WAS SOLD'

    As PHARE Chief-of-Mission Maurizio Locatelli explained, the oil detected at the wholesale market of Skopje these days has not been part of a Humanitarian Aid programme but an `urgent relief' shipment (of cotton, sugar, flour and oil) for Macedonia - granted in 1993/94 - worth 30 million ECU. These products were intended for categories of ultimate beneficiaries, while the distribution was to be executed by the Ministry of Development and the National Stock Reserves Directorate.

    After a determined grace-period these beneficiaries would have been required to repay 80% of the value of received goods in installments. The Gvt. did so in the first quarter of 1997. Funds would have been used to implement socio-economic reforms proposed by the Gvt. and approved by PHARE. The question which still remains to be answered: How come these goods have reached beneficiaries `for a price' at the wholesale market? Macedonian authorities still have no comment.

    [11] THE NATIONAL STRATEGY ON THE LONG-TERM ECONOMIC DEVELOPMENT OF THE REPUBLIC OF MACEDONIA: THE BASIC STRUCTURE OF ECONOMY - PART 15

    .... The economic - and particularly the industrial - structure has been characterized8 by: outdated technical equipment and technology; the insufficient exploitation of facilities; unsatisfactory export orientation; energy dependence; the low percentage of products requiring sophisticated processing; traditional/outdated resources; low profitability.

    The economy is subsisting on economically and physically outdated technology and equipment which does not allow the maintaining and expanding of production and efficiency. The extent to which this is the case becomes more than obvious through the fact that app. 70% of technology and equipment fall off to the category economically and physically outdated, while the epiteth `state-of-the-art' may only be bestowed on 10 - 15 %; the remainder (15-20%) is of medium standards.

    9. One more key structural problem surfaces in the shape of a shortage of energy on the one hand - and high energy demands in the industrial sector on the other. In order to meet electricity demands within the country, several electricity works (operating on water and heat) have been constructed. The annual production of electricity in 1995 amounted to 5.8 billion KW/h. This does not suffice to provide for all major users in conditions of increased facility exploitation.

    Due to this it has become necessary to import electricity or commission the constructing of new electricity works to facilitate the increased utilization of metallurgy enterprises - especially in view of the future increased demands among the population and within the economic sector. Demands for crude oil are being settled via import exclusively. The same applies to high-calorie coal types. These current structure problems entail the insufficient production rate of items requiring more sophisticated processing stages. This again results in low profitability, which then bears an impact on production scope and huge transport expenditures.

    10. Privatization has also been conducive to the independence of several enterprises representing one entity, i.e. used to be constituents of holding companies. In conditions of lacking coordination initiatives and more successful modes of production organisation based on market criteria, this has had a negative impact and limited the increasing of production and export. The economic structure of this countries has been substantially depending on those of the Former Yugoslav constituents, while being mainly concentrated on the markets of EE countries. The loss of the latter has considerably pruned export markets and production at the same time. The re-focusing on new markets is proving to be rather laborious due to the insufficient competitiveness of most products.

    Agriculture has been hampered by the insufficient share of industrial cultures and fodder production, while livestock produce has proven just as rare. Farming land is not being utilized properly, properties are likely to become even smaller; fertilizers, protection products and quality seeds and plants will be harder to find... all this will entail low production rates per unit and head of cattle. The general conclusion indicates that the Republic of Macedonia has not yet succeeded in achieving a decisive turning-point in transforming extensive production into intensive - in spite of existing production and infrastructure facilities. This, however, would be imperative to boost production and achieve stable growth.

    Trends to Achieve a More Functional Production Structure

    11. Analyses have proven that the existing economic structure will not secure a stable, dynamic and continuous rate of growth and development. Due to this restructuring embodies the basic prerequisite to establishing a contemporary and efficient economic system and sustainable development. Changes of the economic structure should be conducive to a rational and efficient resource effectuation, the improved utilization of production facilities, the increased engagement of the labour force and the absorbing of technological progress. The restructuring of economy is being determined by the level of current development, available factors and development conditions. Changes should be targetted at adapting and modernizing the industrial sector, updating and intensifying agricultural production and at the speedier development of the service sector.

    The basic principles codifying these production structure changes are: the revitalization of existing facilities and the achieving of production inter- operability; the more expanded application of technical and technological achievements; an explicit export orientation and the increased system integration within global economic systems; more intensified investments into basic funds - in the service sector in particular and the efficient supporting of small businesses. The changes in production structure should further be directed towards the reaching and maintaining of an optimum level of industrial and agricultural production, and towards increasing the share of the service sector within the GNP. The latter is especially to be entailed by reviving and expanding the construction sector, transport, tourism, crafts/trades and other service domains - paralleled by an increased export orientation. This is to be complemented by putting a halt to the downward trend of industry within the GNP.

    In order to achieve an optimum economic structure, this is to be effectuated by reviving existing facilities and encouraging the small and medium size business sector. It has been estimated that industry within the Republic of Macedonia needs to reach the share of its current role-models, of app. 33%.12 Such a percentage is to be achieved through the development of propulsive branches and activities, such as: electronics, the electro-industry, machinery production, transport vehicles production, the chemical/pharmaceutical industry, the metal processing industry and agricultural industry.

    This is to be paralleled by increased vertical networking between primary production and sectors and branches within the final sector - while applying above all to: metallurgy, metal processing industry, machinery production; then the chemical and textile industry; the footwear and leather goods industry with respect to primary agriculture production and final processing branches. These measures are to create conditions conducive to a mote expedite development of processing branches and an increase in employment, incorporating the application of state-of-the-art information technology in combination with highly labour-intensive branches.

    The industry structure will further be characterized by the permanent contribution of the energy resources sector, whose development is to be subordinated to a future economic structure without any new major consumers. Existing consumers will be encouraged to save energy via increasing the efficiency of energy consumption. Future agriculture production is to be marked by the optimum utilization of farming land, an increased growth in industrial cultures production, and the resuscitating of the livestock sector in particular.

    Departing from an aspect of comparative advantage, production within this sector should result in competitive export surfeits adhering to European quality standards. The construction sector is to develop through more efficient marketing strategies, in order to achieve integration into domestic investment ventures and projects executed abroad. In order to raise quality standards of services, it will be necessary to establish a vertical cooperation network with dependent reproduction branches within industry and the crafts/trades sector. Coordination and cooperation with renowned international partners will also be prerequisite to increase the number of domestic and international contracts.

    The transportation sector will require an upgrading of technical equipment and technology, as the duration of transport and system/service inter-operability need to be improved. The same applies to the rational rendering of all transport services. Commerce is to be subjected to a modernization of domestic transactions and the promoting of international trade ventures. Within the tourism and gastronomy sector, more successful marketing on an international level is required; as is the case with improving service quality, increasing the scope and contents of (extra-)tourist arrangements. The small business sector with its multifarious components, its diversity and efficiency is to become the key element of fortifying national economy and development. These businesses are to emerge in all domains where production organisation and the market are requiring compact, highly-productive organisation structures to meet the demands of both the economy and the population.

    Another objective would be the generating of an increased hard currency influx. Such structure changes of economy will not be achieved via a planned determining of priority branches and sectors - but rather through competitive production programmes and service provision based on several criteria. Such a policy of structure change should be founded on market needs, while the state is obliged to create conditions conducive to the obtaining of a more functional economic structure and more dynamic growth through the macro-economic and development policy it employs. It is being considered that this combination of a project-based approach and measures of macro-economic and development policy will entail the most appropriate restructuring and modernization options. This should entail the rational development and the economic and technical furthering of production...

    For more details see: National Community Planning Institute, An Analysis of Conditions, Possibilities and Trends in Conducting the Restructuring of the Economy of SR Macedonia, Skopje, October 1998. 9 MANU: The Revitalization of New Technologies Within the Economy of the Republic of Macedonia, Skopje, 1989. p. 11 10 Concordant to certain findings transport expenditures amount to a total of 20 - 40% in terms of the retail prices of certain goods. 11 More detailed views on changes in production structure with regards to each sector have been compiled in shape of discrete appendices of this project. 12 The Development Strategy of the Republic of Slovenia has scheduled an industrial share of 38% in the year 2002 with respect to its overall economy.

    (To be continued...)

    mils news 22 August, 1997


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