Life in Statistics

On the Verge of Poverty

AIM Banja Luka, 16 June, 1999

According to the statement of the Republican statistics office issued on 6 May, the average salary in the first three months of this year amounted to 199 convertible marks (KM). The lowest salaries were received by employees in the sphere of catering and tourism (138), industries and mining (159) and handicraft and sector of personal services (161). The highest salaries were of those employed in the sphere of finance, technical and business services (294) and health and social welfare (274). Higher salaries in non-productive branches of the economy are explained by the head of the Republican statistics office Slavko Sobot by higher education of the employees. The office still has not published the price of the consumer basket for the said period, but it is estimated that it might amount to about 350 KM.

Judging by the published data for last year, Republika Srpska will this year face the greatest fall of the average salary and the highest prices of the consumer basket ever. For the uninformed, the consumer basket consists of a certain number of consumer products necessary for the average quality of life in the course of one month. According to statisticians, there are 40 such products in the basket - fruit, vegetables, meat, milk, meat and dairy products and products made of flour. When prices of the quantities of these products needed by a family for a month are added up one arrives at the price of the consumer basket.

The price of the consumer basket which is double the value of the average monthly pay of employees in RS leads to the conclusion that in order to survive employees are using either their savings or supplementary income which is higher than the regular one. The third conclusion is also possible - that people are forced to economise so that they are living under the minimum. All things considered, all three are the secret of survival - savings, supplementary work and above all miserable life.

In January last year, it was necessary to have 4.08 average salaries for the value of the consumer basket. In May, the average salaries went slightly up (747 dinars), so that it took 3.24 average salaries for the consumer basket. In December the greatest increase of monthly salary was registered (1419 dinars). For the consumer basket in that month it was necessary to have 1.96 average salaries.

Last year's rise of salaries might go down in reverse progression this year. Deterioration of political situation in the beginning of this year resulted in interruption of inflow of international aid. Disturbances in payment operation with the Federal Republic of Yugoslavia additionally complicated economic circumstances. In the end came the NATO intervention in FRY and complete interruption of all economic links with the most important economic partner of RS. Direct damage done to the economy of RS is counted by millions of dollars, and about 30 thousand people have lost their jobs. The estimates of the government of RS are that the total figure of workers who will be left without their jobs will reach 50 thousand. It is still impossible to estimate indirect damage, but they are the ones that might be catastrophic.

According to the data officially used by the government, there were 180 thousand employed persons in RS. Slavko Sobot thinks that in fact there are 210 thousand of them, and explains the difference by the fact that owners of private enterprises do not register their employees with the authorities. In December last year, there were 161,484 pensioners in RS. Their average pension amounted to 444.59 dinars (about 50 German marks).

In such economic circumstances prices and salaries turn life into a puzzle. It is quite incredible how a pensioner with a pension amounting to 50 convertible marks (KM) makes ends meet, even if it is assumed that the state tolerates his failure to pay rent and electric power consumption. The increasing traffic jams in cities open the question where the people get the money for gasoline. Smokers do not seem to be giving up their habit although the price of cigarettes is quite a considerable item in the daily budget.

And this is what the prices are like nowadays: the price of one kilowatthour is 0.0565 KM, a local telephone call costs 3 pfennigs, a litre of "super" gasoline 1.18 KM, diesel 0.99 KM. For a daily newspaper it is necessary to give 0.5 KM every day, and for a weekly 1.5 KM.

With the approaching summer, prices on the green market are slightly going down. A kilogram of potatoes costs 6 to 8 dinars, tomatoes are sold at between 18 and 20 dinars, cucumbers between 8 and 10, exactly as strawberries. A kilogram of bananas costs the same as domestic apples (about 10 dinars), oranges 17 dinars, and peaches 38.

A litre of the so-called "daily" milk costs 1 KM, and a litre of yogurt 1.8 KM. A litre of lasting pasteurised milk made by Zagreb Dukat costs 1.77 KM, and sour cream of the same manufacturer 0.80 KM. A litre of Fructal's (Slovenian) juice costs between 2 and 2.30 KM. White bread (700 gr) costs 0.59 KM, and a loaf of black bread 0.54.

For those who wish to make comparisons it should be said that one German mark is exchanged in the street for 10.8 dinars.

Decline of the standard of living worries the merchants. Owners of shops complain about persistent reduction of turnover. "People are buying less and less. Only what is absolutely necessary is sold", a saleswoman in a privately-owned shop complains.

What used to be a sign of good standard is nowadays nothing but a dream. Nobody even mentions summer vacations and travelling on holidays. There still are no offers for holidays in Bocac tours tourist agency. "We expect to get something for Greece. There is no interest for holidays in Montenegro, and we heard there will be no sale of tourist facilities because of bombing", says the amiable worker in the agency. Last year Bocac tours had a good offer for holidays on Montenegrin coast. "Those who have money will go to Slovenia this year. Slovenia is cheaper than Croatia and more acceptable for the Serbs", assesses a tourist agent who has spent a few days in Bohinj.

The collapse of the economy of RS caused by NATO intervention in Yugoslavia along with internal political instability and interruption of the inflow of international financial aid will pull down the standard of living of the citizens of RS to the level of existential misery. Primarily protagonists of big social changes, democratisation and transition are facing a great challenge.

Branko Peric

(AIM)