OPATIJA, Nov 22 (Hina) - Continuing with the current economic policy means staying in recession and leads to further decline, economists attending a conference in Opatija agreed on Thursday. They demand changing the policy and its
goals. In its second day, the conference of the Croatian Economists' Society tackled globalisation and European integration. Branimir Lokin and Ivo Lovrinovic recommend immediately discontinuing the policy of stabilisation, which they say has been in force since its introduction in 1993, with results evident in the poor standard of living and unemployment. All the talk about globalisation holds no water as the domestic concept is self-destruction, Lokin maintains, adding Croatia today is farther from globalisation than before, and tomorrow will be even more so. He calls for "brutally rejecting the stabilisation programme" and demands the economic policy start solving the
OPATIJA, Nov 22 (Hina) - Continuing with the current economic
policy means staying in recession and leads to further decline,
economists attending a conference in Opatija agreed on Thursday.
They demand changing the policy and its goals.
In its second day, the conference of the Croatian Economists'
Society tackled globalisation and European integration.
Branimir Lokin and Ivo Lovrinovic recommend immediately
discontinuing the policy of stabilisation, which they say has been
in force since its introduction in 1993, with results evident in the
poor standard of living and unemployment. All the talk about
globalisation holds no water as the domestic concept is self-
destruction, Lokin maintains, adding Croatia today is farther from
globalisation than before, and tomorrow will be even more so.
He calls for "brutally rejecting the stabilisation programme" and
demands the economic policy start solving the basic problems, like
unemployment and the balance of payments.
According to Lovrinovic, the objective of every government since
1993 has not been the development of the real sector but monetary
stability. This policy has led to the separation of the two sectors
and, if resumed, will keep Croatia in recession, he says.
Lovrinovic advocates a different, new monetary policy which will
make sense only if the main economic policy goals are changes, with
precedence given to export and employment. He also proposes coming
up with a new, more effective public debt management policy. The
harmonisation of all economic policy segments should encourage
production, employment, export, and economic growth, while
sacrificing part of the monetary stability. Lovrinovic also
advocates major ventures, especially in shipbuilding, tourism, and
agribusiness, with intervention from the state.
The absence of such changes prolongs Croatia's indebtedness and
foments social and political tensions which will turn bids for
joining the European Union into mere slogans, says Lovrinovic.
According to Branko Horvat, Croatia will not join the union in the
next 20 years, and if the current policy is resumed the current
decline will continue.
He estimates next year's economic growth will revolve between zero
and two percent, and expects further unemployment and destruction
of the domestic agriculture.
The alternative, according to Horvat, is changing the policy of
market fundamentalism with one of economic development, which
calls for institutional changes.
The economists today also proposed establishing a state bank which
would have a development mission, and pointed to the need of
increasing the Croatian economy's competitiveness.
Yesterday members of the government defended their economic
policy, disputing claims about recession. They maintain the
economy has consolidated in the past two years. For next year the
government expects an economic growth rate of 3.5 percent, and
announces a set of measures which should ensure growth in both
employment and the standard of living.
(hina) ha sb