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AFP. 25 September 2002. Economic reform divides Serbian presidential candidates.

BELGRADE -- The pace of economic reform in Serbia since the ouster of
war-time leader Slobodan Milosevic two years ago is dividing the
republic's electorate ahead of Sunday's presidential polls.

All agree on the desperate need to rebuild the economy, which was
crushed by sanctions and international isolation as the Yugoslav
federation collapsed in the bloody independence wars of the 1990s.

But the question of how quickly the main Yugoslav republic should
embrace the open market has exposed key differences between the two main
presidential candidates -- Yugoslav President Vojislav Kostunica and
Yugoslav Deputy Prime Minister Miroljub Labus.

Neither wants to share the blame for the broken promises of two years
ago, when the end of the Milosevic era raised huge expectations that
Serbia would at last regain its position as the economic engine room of
the Balkans.

Instead the economy has drifted aimlessly, average monthly wages have
stagnated at around 150 euros (dollars) a month -- among the lowest in
Europe -- and foreign investors have been reluctant to commit.

Labus has proposed the kind of shock therapy prescribed by financial
institutions like the International Monetary Fund (IMF), involving rapid
privatisation of state-run assets to kick-start the economy with direct
foreign investment.

But the privatisation ministry, which aims to sell some 7,000 public
enterprises over the next five years and, in effect, rebuild Serbia's
private sector from scratch, admits that some 400,000 workers will have
to be "retrained" in the process.

For Kustunica, the social price is too high in a country of some 10
million people that is still reeling from the turmoil of the past decade.

"I think we should accommodate them (international financial
instututions), but not in the way that the people should start
starving," he told AFP in an interview. 

"I think there is more space to manoeuvre in that respect, bearing in
mind how people live. All around us you have graveyards of governments
who got excellent marks from the IMF."

. . . . . . . . . . . . . . . . . . . . . . .

ProletarianNews
http://www.utopia2000.org

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