Politics Information |
Slovenia - The Star Pupil
The most exciting event in Slovenia last week was when a group of young army recruits spat on the national flag and sang the anthem of the now defunct former Yugoslavia. They were sent to a military psychiatrist for observation. Indeed, economically speaking, a preference for any other part of the late Federation over Slovenia would indicate mental deformity. Slovenia is by far the most prosperous and pacific of the lot. Income per capita increased by 7% between 1995-2000 and reached 75% of the EU's average. Yugoslavia and Macedonia would require half a century to reach this level at current growth rates. Slovenia's public debt is negligible (c. 26% of GDP), its unemployment rate is almost American (less than 7%), its budget deficit a mere 1.4% of GDP. Slovenia's gross national savings is almost a quarter of its GDP - as is its gross domestic investment (28%). It is a respected member of both the World Bank and the IMF. The former has disbursed c. $250 million for purposes such as structural reforms and environmental cleanups. The latter praises its monetary targeting, the managed float of its tolar, and the lack of major (budget and current account) imbalances. This, despite erratic monetary management by the Bank of Slovenia, which, together with the introduction of VAT, the oil price shock, and a totally CPI-indexed financial environment, led to escalating inflation (c. 9% annually, up from 6%). Thus, should Slovenian officials fail in their efforts to secure agricultural and regional development concessions from their counterparts in Brussels, Slovenia runs the risk of becoming a net creditor of the EU. Slovenia, contrary to most other current members, is openly unhappy with the "Big Bang" enlargement of the Union. It has successfully concluded 22 out 29 chapters to be agreed with the EU prior to accession and it is afraid of being held back by an unrealistic, politically motivated, process of enlargement which will stress the EU's deficient institutions to their breaking point. Slovenia is small. It is the size of pre-1967 Israel or New Jersey. With less than 2 million citizens (88% of which are ethnic Slovene), its population grows by a paltry 0.14% p.a. Still, had it not constituted the northern boundary of a war prone and unstable region, Slovenia might have attracted more FDI (it has one of the lowest rates among the candidate countries), bordering as it does and integrated as it is with the (relatively) large and disinflated economies of Italy, Hungary, and Austria. Many Slovenes actually live in Jorg Haider's part of Austria (Carinthia). Italians owned property (confiscated by the communists) in Slovenia before the Second World War (the source of a simmering grudge in Italy). Italians, Austrians, and Germans invest in Slovenian banks, insurance companies, and industry. Together with Poland, Hungary, and the Czech Republic (among others), it is a member of the now reawakened CEFTA (Central European Free Trade Agreement). Only 4% of Slovenia's GDP derives from agriculture (vs. 61% from services). Still, Slovenia, to its great ire, is often associated with the Balkan. But the bad neighborhood is not the only obstacle. Slovenia's privatization was as crony-infested as elsewhere in the Eastern Bloc and its legislation still incorporates investment-deterring anachronisms (restricted land and media ownership, an over-regulated labour market, lack of corporate governance). Capital account liberalization was implemented only recently. Close to half of the economy (including a chunk of the favoritism-ridden and inefficient banking system) is in the hands of the state. The private sector, though, is thriving. Growth rates (4% this year) are double the European average and GDP per capita is almost equal to Greece's or Portugal's. Slovenia's international trade amounts to 60% of its GDP. Two thirds of it is with the EU (half of this with Germany and Austria, the former colonial mater). Its trade with Russia, the USA (3% of the total each), and even with other republics of the disintegrated Yugoslavia is marginal. It still purchases raw materials from Macedonia and Yugoslavia - and sells back to them the finished products (as it used to do in former Yugoslavia). But this does not amount to much. The decoupling is intentional - Slovenia considers itself an integral part of Western Europe. All it inherited from Communism, it feels, was polluted rivers and coastal water, acid rain, and depleted forests. Still, such exposure to the EU makes Slovenia susceptible to the Union's business cycles. Shortsightedly perhaps, it does not have a trade representation or an economic attaché in the USA. Of all its erstwhile confederates, Slovenia maintains tenuous political contacts only with Croatia. It just resolved a long standing dispute with Croatia regarding the Krsko nuclear power plant. Both countries agreed to continue discussions regarding the final demarcation of the hotly disputed (in Slovenia) border between the two countries as a prelude to the introduction of the Schengen agreement. Overtures are made to post-Milosevic Yugoslavia. Slovene legislation is eagerly copied by Macedonia. Gradually, albeit reluctantly, Slovenia comes to be regarded as a role model by its southern neighbors who strive to emulate its success. About The Author Sam Vaknin is the author of "Malignant Self Love - Narcissism Revisited" and "After the Rain - How the West Lost the East". He is a columnist in "Central Europe Review", United Press International (UPI) and ebookweb.org and the editor of mental health and Central East Europe categories in The Open Directory, Suite101 and searcheurope.com. Until recently, he served as the Economic Advisor to the Government of Macedonia. His web site: http://samvak.tripod.com
MORE RESOURCES: Unable to open template $TEMPLATEfilename, exiting |
RELATED ARTICLES
Adolph Hitler ADOLF HITLER:The common perception of Hitler being large and in charge is not likely the case. He certainly was 'handled' or beholding to many others including psychiatrists, esotericists and industrialists. Dole, Kemp, Trusting People Many in the peanut gallery of society are so quick to attack the republican party, out of duty to their side of the sound and fury of human endeavor, however if you are really going to attack people without debating their concepts then in fact you are no better than those you condemn. I recommend to all that you look at both sides and see how similar we really all are. Telemarketing and Job Losses Telemarketing and DO NOT CALL lists sure made headlines, but I bet there is something you did not realize. The good news about such industries is they bring in good telecommunication infrastructures, lower costs for consumers telephone bills, and are pollution free. Democracy, War and the Media - Uneasy Bedfellows All Round Recent international wars and the often spectacular ways in which the established media is covering them, have given media researchers ample opportunity to see whether technological developments are giving us the opportunity to have a closer experience of democracy.It is logical to assume that new technology empowers us all. Wartime Britain & Things Look Bleak This is the second of a series of four articles about life in Britain in the 1940's. My uncle the late Mr Gordon Bessant is talking to Mr Joe Hieatt-Smith. Bush Victory: A Defeat for the Have-Nots? The shouting is over and directions for the next four years selected. Judging by past behavior (the best predictor, psychologically, of future behavior), we can look forward to:1. The Revolt of the Poor: The Demise of Intellectual Property? Three years ago I published a book of short stories in Israel. The publishing house belongs to Israel's leading (and exceedingly wealthy) newspaper. The European Bank for the Retardation of Development In typical bureaucratese, the pensive EBRD analyst ventures with the appearance of compunction: "A number of projects have fallen short of acceptable standards (notice the passive, exculpating voice - SV) and have put the reputation of the bank at risk". If so, very little was risked. The Civil War - FOGC Thomas Jefferson wrote a letter to Lafayette in 1823 that went as follows: "I do not believe with the Rochefoucaults and Montaignes, that fourteen of fifteen men are rogue. I believe a great abatement from that proportion may be made in favor of general honesty. Why One May Not be able to Locate Your Lost Money in the States Unclaimed Property Database With respect to the States' databases, you may not locate your unclaimed asset or property on the online databases for the following reasons. The States' Unclaimed Property Divisions only hold approximately half of all unclaimed or lost assets. 911 Conspiracy Theory Revealed During Coffee Shop Conversation A coffee shop conversation about a Great Country in Historic Times. It seems there are many out there who believe in conspiracy theories and are all too quick to label and judge our leadership as evil. What could Macedonia Learn from a Tiger? Asian Tigers and Uninterrupted Economic Growth The first reaction of economies in transition is a sharp decline in their production, mainly in industrial production. In the countries which attained independence with the demise of the British Empire (where the sun never set) - industrial production fell by 20% on average. How Senator Sarbaines and Oxley Destroyed America You have probably heard of the Sarbaines Oxley Law (SOX) on corporate governance to make corporations totally transparent. And the voters and investors wanted this law so they could know which companies to invest in so they could make 20% per year on their money, which they damn well feel entitled to. The Project For A New American Century Let the reader be reminded, that this document we are quoting, which can be readily viewed at PNAC's website, (Rebuilding America's Defenses), was drafted in 1998, based on a document that was presented to the White House in 1992! Of course I suppose in the eyes of the undying Christian supporter of the American New World Order and the George Bush White House, the fact that the world is currently fulfilling this document TO A TEE, could be totally coincidence. The fact that the American Government has put on a show of tragedy and disappointment in the public's eyes, pretending that none of this was planned or intended, and has pretended to be surprised and overcome by these things, when they clearly stated them 12 years ago, as necessary goals to "project American power across the globe" is beyond the scope of your average American Christian's comprehension, while he argues that this is a holy nation. Let me throw out a random thought on Homeland Security Leadership Structure Streamlining Homeland Security with a Free market flair? An idea of adding four more components to the joint chiefs of staff; hire a Jack Welch type as an ombudsman to the group, who does not play rank games. Two; Have an additional force called Biological Warfare for both defensive military and civilian populations; Homeland security force to unite the police forces, law enforcement agencies and private sector database team. Transporting Troops in the Future Currently when we transport troops we use large cargo planes or put all the troops onto airliners or charter large Boeing Jet Airliners to send them near the battlespace, but in the future we will be able to put them to sleep, pack them into small honeycomb spaces and transport 1000 or more troops in cargo container type modules. Sounds inhumane? It isn't, let me explain why. Federal Trade Commission Will Not Monitor MLM Companies Having been to every city in the country over the population of 10,000 in the last four years I have been noticing a trend. I have seen Multi-Level Marketing folks hard selling their business opportunities in public presentations. Silicon Valley Brain Drain; Bad Trade Policies, Why? We have brain drain issues in Silicon Valley, we have taught so many students from India, Pakistan, China all kinds of heavy duty industrial high tech studies and research and now that they cannot find jobs, many will be going back to those countries to work and with them all our technology. Brain fart? You teach them nuclear physics and you assume if they go back they will make paper dolls or something? Try nuclear weapons dummy. Israel Termed A 'Nuclear Power' By US Officials In the last two weeks, two non-senior US officials indirectly called on Israel to start planning on cancelling its nuclear weapons programs. Even though they said this is not intended for 'the foreseeable future', their publicly terming Israel a nuclear power on a par with India and Pakistan might be a sign that the US perceives of nuclear issues as too serious to condone the double standards it employs freely on other issues. Rule of Thumb For Exporting Technology Rule of Thumb for exporting technology. The American People need piece of mind to get this economy moving. |
home | site map | contact us |