Greetings one and all,
 
I am forwarding this post below which details
the artificial injection of capital into a country.
 
My question is what effect does this injection
have - note that this is not in the form of
an exchange of goods - does it in fact act
as a welcome present and boost the economy
or does it serve to undermine that countries
economy and have disasterous effects?    [Bill]
 
 
 
 
----- Original Message -----
Sent: Thursday, September 14, 2000 9:56 PM
Subject: [STOPNATO.ORG.UK] With the little help of NATO friends....

STOP NATO: �NO PASARAN! - HTTP://WWW.STOPNATO.ORG.UK

Norway offers incentive for Milosevic ouster

By Paul Taylor

 
UNITED NATIONS, Sept 13 (Reuters) - Norway dangled a golden carrot before
Serbian voters on Wednesday, vowing immediately to release 35 million German
marks ($15.5 million) in aid if the democratic opposition defeats Yugoslav
President Slobodan Milosevic at the polls later this month.

``The aim is to support the democratic opposition and the transition to a
democratic system in Yugoslavia hopefully after the election. We have to give
hope to the people that democracy is better than the system they now have,''
Norwegian Foreign Minister Thorbjoern Jagland told Reuters in an interview.

It was the first specific pledge of Western funding if Yugoslavia votes for
change, although the European Union has promised a radical review of its
sanctions on Belgrade if democratic forces prevail, telling Serbs a place
awaits them in democratic Europe.

Norway said the funds would go toward social, economic and political
reconstruction and called for an international donor conference for Serbia if
the democratic opposition took power.

Asked whether the offer might not fuel government charges of interference and
accusations that the opposition is in the pay of the West, Jagland said:
``That is not true. We are trying to help the Yugoslav people and if the
present government wants to prevent the outside world from helping their own
people, then they are on wrong road.''

The Norwegian pledge followed a series of statements from the West designed
to encourage reform through the ballot box.

Presidential and parliamentary elections are to be held on Sept. 24 in
federal Yugoslavia -- Serbia, the dominant republic now under
leftist-nationalist rule, and small pro-reform Montenegro. Serbia also will
hold municipal polls that day.

Italian Foreign Minister Lamberto Dini told reporters: ``The EU (European
Union) has already set aside several billion dollars of its own budget for
the Balkans, especially Serbia ... if the Yugoslav people kick out
Milosevic.''

According to Belgrade media reports, the United States has promised not to
push for Yugoslavia's ouster from the United Nations until after the ballot.

BROAD EUROPEAN STAKE IN REFORM REQUIRED

Jagland said Norway was consulting with the rest of Europe on ways to support
long-awaited reform in this patch of the Balkans.

Serbia, isolated by the West since 1992 for its role in a series of Balkan
wars over the past decade and bombed by NATO in 1999 for its armed repression
of majority ethnic Albanians in Kosovo, has been starved of foreign aid.

It has been denied reconstruction assistance as long as it is ruled by
Milosevic, indicted by the U.N. war crimes tribunal last year for alleged
atrocities by his forces against ethnic Albanians in Kosovo.

Foreign capital is needed to revive an exhausted, neglected and mismanaged
state-run economy that for decades relied on close ties, including big loans,
with the West.

Independent economists have estimated damage caused by NATO bombing at around
$4 billion, a figure that would include investment needed to repair
infrastructure.

The leftist-nationalist authorities have repaired about 10 percent of the
damage in the 15 months since the war.

Repairs to major road and rail transport links mainly have been financed by
trimming payments of wages for state workers and printing money. The result
has been a renewed surge of inflation only days before the vote.

Jagland said Serbia's decrepit infrastructure required a significant
commitment by many countries.

``I believe that an initiative should be taken to convene an international
donor conference for a democratic Serbia and Yugoslavia. Norway stands ready
to participate actively and is willing to make a significant contribution,''
he said.

($1-2.260 German Mark)



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