"Promo" - Fair in Tuzla

The very image of B&H Economy

This year's economic exhibition attracted more manufacturers contrary to previous which were dominated by tradespeople x The European Union is trying to bring the largest possible number of foreign investors x Are there too many fairs in our country?

AIM Sarajevo, 5 May, 1998

Last week, Tuzla was the host to numerous entrepreneurs, scientific workers, but also politicians not only from B&H but also from abroad. At the Fifth International Spring Fair Promo '98 and the International Forum titled "Perspektive" (Prospects) organized by Promo International enterprise from Tuzla, gathered a large number of participants from 17 countries who - representing their firms and scientific institutions - have given their contribution to establishment of business relations and evaluations of the situation in B&H and its prospects for the future. As it is customary in our state, support of the international community did not fail, and its representatives showed that B&H in its reconstruction and development enjoyed big support of the world.

And although this is an economic exhibition of current accomplishments and scientific analyses titled "Regional Development and Cooperation on the Territory of Countries of Central and South-Eastern Europe", the appearance of politicians could not pass unnoticed, who this time spoke more about economic revival than politics. Special attention at the opening of Promo was attracted by the words of Donat Chierinia, ambassador of the European Union, who established that political circumstances are often unfavourable for economic development, but nevertheless promised that the EU would ensure the market for products from B&H. That is why EU would do its best to attract as many foreign investors as possible to our state in order to accelerate revival and economic development. Haris Silajdzic, co-chairman of the Council of Ministers of B&H, went one step further claiming that B&H is expecting its opportunity to join Europe, but - comparing us with a patient - stressed that treatment should begin as soon as possible. By joining Europe, the co-chairman thinks, many problems in B&H (both political and economic) would soon be resolved. But, how can anyone talk about European integrations when within our state, union of its parts is not making progress.

Many of these and similar allegations could be recognised at the Fair, at the stands, but also at meetings of entrepreneurs. Inside B&H - with rare exceptions - lack of connections and coordination between economies of the Federation and Republica Srpska is still felt.

There were just a few enterprises from Republica Srpska at the Promo. At a stand of a representative from Yugoslavia, an advertising poster of Trudbenik from Doboj could be seen, but not its product. But what has happened with other enterprises from RS, such as Banja Luka Rudi Cajavec, Birac from Zvornik, Bijeljina sugar refinery and others?

To an uninformed observer, Promo '98 could, therefore, give a clear up-to-date cross-section of the situation in the economy of B&H, although in somewhat lighter tones than the actual. At the economic exhbition in Tuzla, a large number of B&H exhibitors appeared from the manufacturing branch, especially food manufacturers, which is curious in view of the general situation in the economy, because mostly trading companies appeared at such exhibitions before. It was noticed that some trading companies, like Stanic private enterprise from Kiseljak, expanded their former work to include manufactiuring, which is certainly cause for joy. At the two neighbouring stands (on quite a big area) two meat industries exhibitted their products - Lijanovici from Siroki brijeg and Stanic from Kiseljak, which in a healthy competition at the market can mean greater competition but also lower prices of food. Liveliness at these two stands need not imply great effects, because a better known foreign food exhibitor - PIK from Vrbovec complained that it had just a few visitors and extremely bad performance at Promo.

The fair in Tuzla was judged depending on the size of the enterprise and its domicile location. For some minor enterprises, two or three contracts may mean a lot, and for the major ones it is just a a drop in the sea. Komar's plaster factory from Donji Vakuf is extremely satisfied with the contract on 20 thousand German marks worth delivery of its products to a Yugoslav enterprise. At the time when one knows that just twenty per cent of production capacities in B&H are being used, a few minor business deals mean a lot.

Certain former business relations with enterprises from former Yugoslavia were re-established at Promo '98. A few firms from Tuzla - like Dita and Siporeks - are for a year of two already successfully cooperating with Serbian enterprises, while the others are trying to re-establish cooperation after six years. When one knows this, it is no surprise that about ten enterprises from Yugoslavia appeared at Promo, mostly construction material manufacturers who see their chance in reconstruction and construction in B&H. Prices and quality of products will decide who will get the jobs.

During seven days of the Fair, 270 exhibitors from 17 states exhibitted their achievements on the area of about 6,300 square meters. And although it may have seemed that some products, especially luxurious ones, will not sell in B&H, careful observers could see that even for the most expensive goods customers were found at the fair. A good example is that a Renault car with the price of about 120 thousand German marks was bought by the owner of a privately-owned enterprise from B&H.

The ultimate effect of Promo '98 will be known in the next few days when the organizer sums up the results. It would be interesting if the greatest enterprieses - participants at the fair - would make their contracts signed in Tuzla public. The result would then be complete and it would fully indicate the purposefulness of organizing fairs. This especially because in B&H - which still has not reconstructed majority of its production capacities, so that it does not have a significant offer of products - there is quite a large number of similar fairs. No less than about twenty a year. Is not that too much for a small state such as ours? Almost every canton out of the ten in the Federation (except Gorazde and Livno) have their fairs, some of them even twice a year. Only Skenderija in Sarajevo organizes about ten specialized fairs. To the question of AIM journalist whether there are too many fairs in B&H, diirector of Promo International, Vinko Curo, resolutely claims that there are not and that their effects are satisfactory. If that is true, the fifth spring Promo in Tuzla, in view of everything already said and everything seen in the past seven days, can be considered to have been successful. Nevertheless, the expected number of visitors and even perhaps exhibitors, was not achieved. Hotels in Tuzla were not 100 per cent full, and certain exhibition sites at the fair remained unrented.

It is obvious that next year, developments in the economy will clarify the needs for organizing fairs in B&H, primarily through economic categories. That is the reason why this year's May fair in Zenica was called off by the organizer

• the business system RMK in Zenica, who decided to keep just the autumn exhibition. Whether other organizers will also cancel unnecessary exhibitions, time will show.

Raif CEHAJIC

(AIM, Sarajevo)