DARKNESS OF THE CROATIAN LIGHT

AIM, ZAGREB, September 19, 1997

As of Monday, September 8, the "Electra" troikas (two electricians and one private policeman from the "Sokol" agency) are circiing around Zagreb disconnecting electric meters of all citizens who owe more than 5,000 kunas for their electricity bills. The exact number of such poor payers is still unknown, but what is known is that the total amount of outstanding debt in the Croatian metropolis has reached as much as 295 million kunas (which is approximately 84 million DEM) and that enterprises account for the lion's share. It is to be assumed that in this way, at least several thousands of Zagreb denizens will remain in darkness because they did not have the money to pay the bill. There is no pardon for anyone, so that meters of pensioners, exiles, war veterans and invalids are being blocked with equal callousness, as market laws know no mercy and "Eelectra" is not a welfare institution.

At the same time when the troikas of darkness started their tour of the capital, the papers informed the public of a new plane bought by the Presidential office, while details from the life of Nevenka Tudjman's younger son

• Sinisa Kosutic - are on the front pages. The younger President's grandson is not a successful businessman and banker, like his somewhat older brother Dejan, but is trying to be a racing driver. He abandoned go-kart racing and has switched to stronger engines and is now competing at the Croatian Championship. During preparations for the recently organized race on the Grobnicko Polje track, Sinisa managed to demolish as much as nine cars, type "Skoda Felicia". In contrast to other racers who at the most, managed to buy some ten hours for the preparations on this famous track, since one hour costs 208 kunas, Sinisa started preparations for this race, which was held in mid September, already in March. During that period he used 80 sets of racing tyres. The retail price of one tyre is 500 kunas, and when multiplied by 320 it turns out that this newly-born lover of speed squandered about 160 thousand kunas on tyres only. Naturally, this did not come out of his pocket, because in contrast to wretched citizens of Zagreb who do not have money for electricity, Sinisa has numerous sponsors fighting to be at his service.

These two Croatian pictures drastically and paradigmatically point to a process, which is now beyond every control, of pauperisation of a major share of population and the creation and strengthening of a caste of new, heartless and state-created rich people. However, although it is evident that the living conditions of some 900 thousand pensioners are deteriorating, and that Tudjman's pre-election promises about a 25 percent increase of wages were but a pie in the sky, that rights from the Law on Veterans cannot be realized as there is no money for that, that prices of electricity, gas, heating have gone up...that the average pay is around 670 DEM while the subsistence level of a four-member family exceeds 1,100 DEM, the authorities keep on stubbornly repeating that Croats are living better every day.

And that is not all. Despite the fact that unions, pensioners and political parties, especially the SDP, are warning that the newly proposed Law on Retirement Insurance will bring an even worse tomorrow to numerous pensioners, it will in all likelihood be adopted by the Assembly. Also, the Government is firm in its decision to impose a unified value added tax of 22 percent as of January 1, 1998. Prime Minister Macesa and his Deputy Skegro, as of recent also Minister of Finance, insist that prices will not grow and that this tax will not affect the population's living standard. The Government has also turned a deaf ear to objections that there is no country in the world with only one tax rate, and if there is, than there are exemptions for specific products and branches.

As usual, Skegro states this arrogantly and without any reservations, but to a journalist's question whether there were attempts to simulate consequences the introduction of this tax might have, laconically answers that he personally is an expert for simulation, but that at this moment that cannot be done. On the other hand, the Government does not give a dime for calculations of renown experts from the Institute of Public Finance and State Statistical Office, that the introduction of a new unified rate could cause 5 percent price rise, in which case the poor would fare the worst. Namely, food would go up for approximately 11 percent, transportation five percent, while education and culture 11 percent. And while prices of bread and milk would grow, those of cars, fur-coats and all that is called luxury in poor countries, would fall.

By prohibiting import of meat products from Hungary, where it is almost twice as cheap than in Croatia, the Government has rapped her citizens on knuckles and increased customs duties on food imports, all under the pretext of protecting home industry. Unfortunately, this did not lower the prices on the domestic market, so that apart from being denied shopping-tourism, the population will be punished by an additional tax. All this is happening at the time when stories are being launched about Croatia as a country with the highest growth rates in the world, but unemployment rates never fall below 16 percent. At the same time, tens of thousands of people have been revoked their refugee status, because they allegedly have where to return to. True, they have, but what will they do in Knin, Drnis, Vukovar?

It seems that the Government is only interested in filling its budget, while closing its eyes before the fact that Croatia is at this moment more indebted than it was at the times of Yugoslavia, i.e. its every citizen is burdened by over a thousand dollars of credit, while the internal illiquidity has reached the amazing nine billion kunas. The Government is not worried, although this figure is approximately equal to the primary money issue. Recently during his meeting with the economists at Zagreb Fair, the Prime Minister Matesa confirmed the new decisive course of action: "As of today there will only be the market and do not come to us to cry, but start by getting rid of your own weaknesses." This is cynical to say the least when it is known that the greatest debtors are state enterprises to which socialist rule of planned production still applies, while according to Matesa capitalism has started today for others. Matesa shows no understanding for tourism either. According to him, that is just another branch of the economy, true, important one, but why should the state help it of all the sectors. He doesn't care that all touristic super-powers do it and that the Croatian tourism, which barely made it this year, will be even less competitive next year. We want our 22 percent and you think of the way to pay it - relentlessly says the first Croatian technocrat.

Opening the Zagreb Fair, the Croatian President Tudjman stated that the growth of the Croatian gross national product ranges between six and seven percent and that it will be even higher in the next mid-term. Tudjman denies that unemployment is around 270 thousand, but admits to only 160 thousand, and according to him this will be halved by the year 2000 on account of 40 to 50 thousand new openings annually.

And while Croats are being denied electricity at the threshold of 21 century, a man who buys jets like nothing and whose grandson throws away several hundreds of thousands of kunas just for the fun of it, is promising his people the light, offering it to soon return to where it already was, i.e. offering it a living standard from the times of "darkness". In that he doesn't mention how will the pensioners survive with a couple of hundreds of kunas, or when they will be given back their 40 stolen pensions, or at least when will their pensions increase for the promised 25 percent. Tudjman is bragging with the information that wages have gone up by 20 percent, but persistently keeps silent about inflation, i.e. does not mention real data on the costs of living in a country in which with 100 DEM you can buy just so much to barely cover the bottom of your shopping bag. Consequently his slogan is: Long live a stable kuna and full budget, and to hell with the rest?

GOJKO MARINKOVIC