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STATEMENT FROM THE PRESS CONFERENCE OF MWBU �NEZAVISNOST�

STORIES ABOUT PRIVATIZATION, FAR FROM REALITY




Belgrade, December 10 2007
We have witnessed that some ministers spoke publicly about the stories concerning successful privatization, increased and more intense level of employment, successful economic growth, etc. Unfortunately, such stories are far from reality in which we are now. Six years since passing the Privatization Law and privatization of 2400 public companies that was realized, represents a sufficient period to perceive the effects of proclaimed principles when enacting the Privatization Law in 2001.

Let us remind all that the Law proclaimed four principles in Article 2. :
1.Creating the conditions for the development of the economy and social stability
2.Public security
3.Flexibility
4.Sales pricing according to market conditions.

In the first principle of this Law, the privatization did not give expected results, but it can be said that it generated unforeseeable consequences for future development of the economy and employment as well. Successful privatizations are rather an exception while those unsuccessful are a rule. The thing that is characteristic for successful privatizations is that in most cases foreign companies are in question and seldom domestic ones. In five years of privatization (with 2006 inclusive) a decrease of employment is only evident. At the beginning of privatization in 2001 there were 1.752,000 employees that were employed in industry, and five years later, with 2006 inclusive, this number was 1.471,000 of employees. Almost 300.000 employees lost their jobs during the privatization process. In the metal industry complex there were 251.000 workers at the beginning of privatization in 2001 and five years later the number of employees decreased to 173.000 meaning that almost 80.000 employees lost their jobs due to privatization, and privatization process in metal industry complex has not been completed yet.

 
     
 
 
 
 
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