VII - Social
and Economic Rights
1. Overview
Economy of the Federal Republic of Yugoslavia is still
in a deep crisis, originating from the SFRY disintegration and wars
waged by Serbia in Croatia and Bosnia and Herzegovina. Although this
catastrophic economic situation is most often attributed to
international sanctions, it is quite certain that reasons of the crisis
lie in a collapsing economic system, obsolete and inadequate economic
policy and above all a notable delay in implementing key reforms needed
for the kick-start of the transition process and the long-standing war
policy.
Several statistical indicators can best illustrate the
depth and extent of the economic crisis which engulfed the country, and
which continues to generate a widespread social crisis and consequently
to undercut and threaten social rights. According to the data for
1987-1999 period disclosed by the Group 17, gross social product (GNP)
in 1987 amounted to nearly US $ 31 billion, in 1998 to US $ 17,5
billion, and, according to their estimate, in 1999 fell under 8 billion.
GDP per capita fell from US $ 3,000 (1987) to US $ 800 in 1999.
In 1987 a total of 2,790,000 people were employed, in
1998 there were 2,500,000 fully employed people, while that figure for
1999 was only 2,200,000. According to the Federal Statistical Bureau
report no. 259, in October 2000 figure for fully employed work force
stood at 1,701,590. Number of jobless rose from 607,000 in 1987 to
838,000 in 1998. It is estimated that in 1999 there will be 1,100,000
jobless. The unemployment rate in 1987 was 17.9%, while in 1999 it was
well over 25%, which in statistical terms means that one fourth of the
labour-fit population is unemployed. However that percentage may be even
higher in view of the fact that between 800,000 and 1,000,000 employees
are on forced leaves and receive only guaranteed pay.
Compared to the 1987 figure, the physical volume of
industrial output declined by 62.7%, though some signs of recovery were
noted in 2000. According to Dr. Jovan Rankovic, 1,413,444 employees in
the first six months of 2000 received pays totalling 30,000 million
dinars. This indicates that in the said period average net pay was 1,760
dinars or DM 70 (Institute of Economic Sciences, MAP, no. 11, 2000). As
an average family needs about 7,000 dinars, or DM 230 for so-called
monthly consumer basket, it can be concluded that only a small number of
employees, mostly working in power-generating, coal, gas, crude oil, oil
derivatives and non-ferrous metals industries, can meet their basic
needs. According to the Federal Statistical Bureau report no. 258 for
November 2000, average October 2000 pay was 3,200 dinars, while average
pays in the aforementioned industrial branches were 7,600, 9,900, 9,300,
10,000, and 10,280 dinars respectively.
According to the Economic Instituted analysis,
published in December 2000 issue of the "Economic Barometer," general
macro economic conditions in October 2000 worsened when compared to the
previous month. In October there were dramatic price hikes, resulting
from suspension of the state control over prices of some products. Is it
assessed that this suspension was orchestrated by the old Serbian
government to cause chaos in the market. Costs of living rose 23.9%,
while industrial production declined 11.5%. Retail prices were up by
26.4%
In the late 2000 there were drastic outages
Serbia-wide. Dimitrije Boarov (Vreme 28 December 2000) wrote that
electric power shortages were a legacy of the old regime. Outages lasted
on an average 8 hours, but in some areas households were without
electricity for 36 hours. Srboljub Antic, the Republican Energy
Minister, stated that the crisis in the power supply would last several
years. Hospitals with aggregates used their internally generated power
only in surgical and emergency wards. Those undergoing house-dialysis
were deeply traumatised by fear of sudden outages. In fact in its first
days in power, the new authorities of Serbia faced a total collapse.
2. Status and problems of social protection
a. Right to welfare and allowances
According to Dr. Gordana Matkovic, Labour and Social
and War Veterans Rights Minister of the Republic of Serbia (Politika, 3
November 2000), three million people currently live under the poverty
line in Serbia. Officially the poor citizens figure has doubled since
1990, while the number of welfare beneficiaries has halved. In the
territory of Central Serbia and Vojvodina about 30,000 families with
about 90,000 dependants, receive monthly, much-delayed (26-36 months)
welfare to the tune of 25 DM per family. According to the aforementioned
ministry some beneficiaries received their last welfare in August 1999,
while in Belgrade, most received their last social protection assistance
in October 1999. Many of them are yet to receive assistance for the
entire 1998, four months of 1999 and 10 months of 2000. Hence the
Republic owes to those beneficiaries a total of 520,4 million dinars.
b. Right to pension
Average pensions are DM 77, but two-thirds of retirees
receive even less. Pensions are usually overdue (a month or two).
Currently the state owes to citizens DM 160 million. In 1999 retirees
received only 9 out of 12 pensions, which relativised the aforementioned
average. There are 1,260,000 retirees in Serbia, and their growing
number is dangerously nearing a total number of employed persons. In
Serbia about 440,000 people receive so-called disabled persons-pensions.
Retirees are one of the most vulnerable groups of population, left to
their own devices, and only occasionally helped by their children and
families. In Serbia there are 31 old people homes, and on average
monthly accommodation in those homes is 2,529 dinars or over DM 80. Some
retirees are beneficiaries of soup-kitchen operating thanks to the
International Red Cross and other foreign donations. According to Dr.
Mirosinka Dinkic from the Economic Institute, 50% of retirees receive
guaranteed pensions of 1,280 dinars, 10% of retirees get every month
between 1,280 and 1, 588 dinars, 7.4% receive average pensions, and
21.5% receive 2,500 dinars. 5.3% of retirees receive 3,000 dinars and
4.1% of retirees receive between 3,000 and 4,000 dinars. The highest
pension is 5,164 dinars (Danas, 5 April 2000)
Authors Boris Lazic and Vladimir Miljkovic in their
book "Retirees demand payment of their overdue pensions" for the first
time disclosed data on unlawful spending of the funds for retirees'
insurance -a total of US $ 25 billion- in the post-WWII period and
between 1990-1999. (Glas javnosti, 26 April 2000)
Economic Institute research established that one
fourth of retirees is compelled to renounce one or two meals a day, and
that one third cannot buy meat and fruit. Humanitarian assistance was
also bitterly contested. Namely the regime-controlled Alliance of
Retirees of Serbia, affixed posters cautioning retirees against foreign
assistance labelled as "the NATO-distributed aid in kind." This undercut
Independent Trade Union of Retirees efforts to get that aid in the first
place (Glas javnosti, 26 April 2000)
In the course of 2000 trade unions and retirees
organised a series of massive protests against overdue and low pensions.
Trade union "Nezavisnost" was a most prominent firebrand of those
protests. (Glas javnosti, 14 April 2000)
As expected, on the eve of elections, namely in August
and September, retirees, being an important group within the electorate,
received a negligible pension hike and several overdue pensions. In the
past ten years pension payments were always accelerated during the
election race and plans were floated as to the more regular payment of
pensions. (Zoran Popov, Blic, 16 August 2000)
As in the past decade many large companies failed to
make their pension and health contributions, coffers of the Pension Fund
of Serbia are empty. The Fund established in the late 1999 and early
2000 that outstanding debts of 2,242 companies stood at 2,15 billion
dinars for the year 1996. The Fund managed to forcibly effect payment of
922 million dinars, but due to the blockade of the very companies their
debts still remained very high-1,2 billion dinars. (Vecernje novosti, 3
April 2000)
When DOS took over power in October 2000 pensions
became more regular thanks to international humanitarian assistance.
Fundamental reforms of the pension and health insurance system are
urgently needed, but not at the expense of beneficiaries of those funds.
c. Right to accommodation in social protection
institutions
In Serbia there are 22 institutions for abandoned
children and orphans, 3 institutions for autistic children, 12
institutions for persons with stunted physical and mental development,
and 31 old people homes. Average price of accommodation is 2,529 dinars
monthly, and beneficiaries without income are subsidised by special
budgetary allocations. Those institutions received last assistance in
cash in April 2000. Due to 38 million debt of the Republican Institute
for Health Insurance, many of the aforementioned institutions are
underfunded.
Recent appeal for help by the Labour, War Veterans and
Social Issues Ministry best illustrates a dire situation in the
aforementioned institutions. Hardest-hit are orphanages, whose roofs are
leaking and windows are without panes. But so far the only assistance
came from international humanitarian organisations, donors and the Red
Cross. In the institution for mentally retarded children, in Kulin,
there are 500 children, some suffering from the gravest forms of
dementia. According to journalist Ivana Filipovic (Danas, 26 December
2000) "corridors with their dirty walls look like sewerage. Beds are
without mattresses. Until recently windows were unpaned. A terrible
stench spreads from bathrooms, or premises which are supposed to serve
as bathrooms." According to the Federal Statistical Bureau data
(Statistical Almanac for the year 2000) in the FRY there are 4,000
children stunted in physical and mental development. They are
accommodated in 24 institutions, employing 1,780 people, half of whom
are health and other professionals. However during their tour of those
institutions journalists reported that many of those institutions were
understaffed. For example in one of those institutions, in Vojvodina,
only one woman takes care of all persons accommodated there.
d. Right to social centres services
All citizens are entitled to free of charge services
of social centres. Those services are financed from budgetary
allocations. There are 142 social centres employing a total of 2,500
people, mostly jurists, pedagogues, psychologists and social workers.
But low income of those employees (2,200 dinars or DM 70) impairs the
potential and quality of services. In fact the very employees are
potential beneficiaries of such centres.
e. Right to children's and maternity leave
allowance
The aforementioned right is exercised under the Act on
Social Care. But the first allowance was 27 months overdue and the
second one - 23 months, in 1995-2000 period. In lieu of allowances the
Republic of Serbia issued to all beneficiaries long-term bonds. This
issued bonds covered children's allowances in arrears from 1 April 1998
to 30 June 2000, and overdue maternity leave allowance for 1 August 1998
to 30 June 2000 period.
Bonds were issued thanks to assistance of foreign
donors, notably Norway, which guaranteed payments of the first and
second coupon. Thus the new authorities managed to effect the following
payments in the area of social care of children (by 23 December 2000):
33 children's allowances of which 27 were in shape of bonds; 24 of
maternity leave allowance in bonds; 12 pay compensations for maternity
leave effected through income tax reductions; 25 allowances for infants,
12 payments for implementation of educational programs for the third
child and three-hour programs for children with stunted development.
Thus, judging by facts and figures released by the Family Care Ministry,
all obligations towards 850,000 beneficiaries of the right to social
care of children were met.
7. Women's rights
Last federal, republican and local elections best
illustrate inadequacy of women's rights and status in Serbia. Although
women make up slightly over half of population (52.2%), their share in
parliamentary seats is as low as 5%, that is, women hold only nine of a
total of 178 verified mandates. All 15 ministers in the federal
government are men. In the Vojvodina Parliament of 120 MPs only 8 are
women (6.6%), while in the Executive Board of the Assembly of City of
Belgrade of 15 members, only three are women. Women's political network
on the eve of December parliamentary elections launched a campaign for
major participation of women in parliamentary work, but their efforts
met with a defeat, because of a low percentage -14%- of female
candidates. Only Dr. Zarko Korac, President of the Social Democratic
Union and one of DOS leaders gave his mandate to a woman, the party
colleague.
Women face an uphill struggle for political and other
rights in a family-oriented and very patriarchal and tradition-minded
milieu of present-day Serbia. Re-emergence of the rightist,
nationalistic forces and their political and social rise in Serbia in
the past decade, negatively impacted that struggle. In fact women faced
a retrograde phenomenon, the one of relegation of their role to family
nurturers. Vojvodina government set up a special ministry for women, the
first of its kind in Yugoslavia. According to Mr. Jelica Rajacic
Capakovic, a provincial minister, her ministry is tasked with
implementing a comprehensive equal opportunity policy in all areas,
notably in appointment of women to management and leadership positions.
(Vecernje novosti, 19 December 2000). She states that her second
priority is women's empowerment. In the past women kept silent, fearing
for the future of their children. All research works and analysis
indicate that in the past decade women shouldered the burden of the
economic and social crisis, by simultaneously doing the house chores and
often engaging in odd, 'black market" jobs. But in want of leisure time,
women started neglecting their personal education and growth..
Under the Serbian constitution and laws women are
equal with men in all areas, and consequently in the right to labour.
Women make up 40% of total work force. But women are paid less than
their male counter-parts, although official data fail to mention that
fact. They are paid less allegedly because of their maternity leaves,
leaves taken because of illnesses of their children, and frequent sick
leaves. According to the findings of a survey carried out by the Labour
Market, women on an average were 11% less paid that their male
colleagues.
A series of laws provide for the special protection of
employees, expectant mothers and mothers of small children. In recent
years those allowances wee overdue and rather small. But maternity leave
lasts a whole year. If a child is ill, maternity leave can be extended
up to three years. But there are also downsides to this regulation, as
women can rarely find jobs in private sector. Namely owners of private
companies and entrepreneurs often require prospective female applicants
to sign a document binding them not marry and not to have children in
the next few years.
Under the Serbian Constitution private family-planning
is considered a fundamental human right. Although abortion was legalised
in 1952, under pressure of conservative, religious and nationalistic
forces, notably the Serbian Orthodox Church, the right to abortion was
restricted by an intricate Act on Abortion. Namely that Act prescribes
in which cases and under which conditions abortions may be carried out
by medical staff in specialised health institutions. This in fact means
that women have delegated their right to bearing children to-the state
and other persons.
According to women's NGOs in 2000 violence against
women, notably at home, increased significantly. There are no relevant,
official date, for this is considered to be a "private matter." As
regards rape, which is rarely reported, there is a widespread opinion
that it is usually provoked by women themselves. State and society fail
to perceive rape as a specific form of violence against women, and
accordingly, to devise adequate punishments thereof. Over 30 NGOs today
deal with women's rights. They are the only organisations which have
engaged in raising awareness of the women's rights among women
themselves, in the society as a whole and in 'elevating' the issue of
violence against women from private to social plane.
Women in Serbia by and large are not divorce-inclined.
Even when they file for divorce they do it for the sake of their
children and not with their own protection in mind. Due to
across-the-board poverty and difficult housing conditions even 42.56% of
divorced couples continue to live under the same roof. In Serbia there
are two shelters for battered women and their children. Women can stay
there as much as they want. As those shelters were discovered on several
occasions, they had to move to new locations (according to the SOS
Telephone Line for Women)
b. Prostitution and white slavery
Even recent extensive coverage of this phenomenon, has
not spawned initiatives for amendments to relevant provisions (of the
Penal Code of Serbia) sanctioning this criminal offence, namely article
155 ("establishment of slave-like relations and transfer of persons in a
slave-like relations.") As this offence is on the rise, the said
provision should be brought into line with the latest international acts
from this province. Much needed is also international and regional
co-operation leading to the arrest of criminals engaging in white
slavery and raising awareness of this dangerous 'trade' among threatened
population groups, notably younger women. During the existence of the
SFRY Serbia was an attractive area for women from former communist
countries of Central and Eastern Europe ( mainly from Ukraine, Romania
and Russia) later sold into white slavery. It had a good standard of
living, as well as other amenities, and a porous border. But in the wake
of several wars, a deep economic and political crisis and long isolation
Serbia morphed into an ideal transit zone, for these women are easily
smuggled from Serbia into other European countries. Various escort
agencies, waitresses and personal (marriage offers) ads are the main
bait for potential victims. Only in Belgrade there are 40 operating
escort agencies, while ads with suspicious job offers abound in all the
papers. KFOR representatives in the early December stated that Kosovo
Polje had become a prostitution and white slavery centre. According to
available information both the Serbian and Kosovo mafia are involved in
the international white slavery. But there are indications that some
members of KFOR may as well be embroiled in that illegal trade.
(Vecernje Novosti 2 December 2000). It was ascertained that some
under-age girls, young girls and women working in Kosovo had been
brought from Bosnia and Herzegovina, Albania, Montenegro, Serbia,
Ukraine, Moldavia, the Czech Republic and Slovakia. Some were kidnapped.
Some of detained girls did not have a single ID. This illustrates that
official bodies and NGOs should co-operate with international and
regional organisaitons with a view to solving this problem. In the early
December 2000 the Belgrade police arrested two traders of white slaves,
who illegally ferried Romanian and Moldavian girls and women via
Belgrade to Bosnia and Herzegovina, that is Republika Srpska and sold
them to the local night bars owners. In a police raid 17 under-age and
adult foreign girls were found in their flat. Each of them was to be
sold for DM 500. ( Politika, 5 December 2000). Police involvement is
suspected, as the indicted traders confessed that "letters of invitation
and false passports were obtained through acquaintances." Seriousness of
this problem is best indicated by the case of a girl I.J. who committed
suicide after being tortured and beaten by two pimps. Arestees, brothers
Danijel (35) and Predrag (19) Markovic admitted that the girl was bought
for DM 600, and that she was forced to carry out all their orders. After
six-month long proceedings they were sentenced to three years in prison,
but the elder brother managed to escape. (Glas Javnosti, 14 December
2000). This case does not fit the "classic scheme," because the police
usually fails to track down such merchants and solve pertinent cases.
The aforementioned lenient sentence and delayed procedure reflect the
prevailing attitude on women and their rights in Serbia. According to an
activist of project ASTRA, who wanted to remain anonymous, a large mafia
network is involved in white slavery, and due to lack of police
co-operation it is very difficult to grapple with this problem and gain
any inside information. In a bid to counter this increasingly massive
trade in women, ASTRA NGO launched a project in 1998. The project
included guidelines for the fight against organised crime, education of
women and prevention of white slavery. The ASTRA report stated that
"women mainly brought from Romania. Moldavia and Ukraine, are replaced
every two months in the Belgrade brothels, and are 're-sold' to bar
owners in Bosnia and Herzegovina and Novi Pazar.
Abuse of women and children
In a predominant war-mongering mood, and under
circumstances of a total collapse of old set of values, families and
morals started breaking apart. At the conference "Child Abuse and the
Media"organised by the Yugoslav Centre for the Rights of the Child,
Institute for Mental Health" and the Belgrade office of UNICEF
terrifying facts and figures on the child abuse were made public (Glas
javnosti, 3 December 2000). Child abuse counselling services were set up
in 1996. Since then this organisation received 3,000 appeals or
complaints of abused women and children every year. Moreover 30% of
those distress calls are repeated. The conference analysed the child
abuse phenomenon, its features and extent and protection of children.
A whole range of inhumane relations, like neglect,
abuse, torture and other forms of violence, is characteristic of the
Serbian society. Most common is the psychological abuse of children at
home and in kindergartens for the sake of their alleged "disciplining."
Many participants stressed that contrary to popular belief, mothers,
notably single mothers, and not fathers, are often ill-treating their
children.
Although in Serbia a more massive occurrence of the
child prostitution was not registered, the child pornography related to
paedophilia is on the rise. But such problems in both the
tradition-minded and amoral Serbia are glossed over. Society often fails
to react to such phenomena by ignoring the problem, passively accepting
it or 'transferring' it to 'others...competent bodies.'
4. Overview of social situation
In the past decade the Serbian society was drastically
stratified. Research of the Social Sciences Institute indicates the
emergence of about 200,000 extremely wealthy people. On the other hand
most recent analysis points to a growth in the number of very poor
people and decline in the number of rich people. Besides a large strata
of pauperized domicile population, Serbia has to take care of
500,000-700,000 refugees from Croatia and Bosnia and Herzegovina and
about 225,000 displaced persons from Kosovo, mostly Serbs, Roma and
Muslims. Gordana Matkovic, Labour, Veterans and Social Issues Minister
of the Republic of Serbia, stated that the middle class had disappeared,
but that a genuine insight into the economic status of the nation cannot
be gained because of a bustling "grey economy." Moreover refugee
population is not homogenous with respect to its financial status. In
order to preserve the social peace the regime turned a blind eye to the
obvious growth of the grey economy. Hence there are no data as to the
number of people moonlighting on a daily basis. Their "employers" do not
pay taxes and contributions for such 'temps.' The Minister maintains
that one of the top priorities of the new authorities is stabilisation
of system of the social protection.
According to the ICRC information the biggest food
distribution program is being implemented in Serbia. Currently 13% of
total population of the FRY directly depend on humanitarian aid.
Beneficiaries of foreign aid are refugees from Croatia and Bosnia and
Herzegovina (360,000), displaced people from Kosovo (200,000) and local
population (800,000).Moreover, according to pertinent estimates, the
need for such foreign assistance is likely to increase. The ICRC has
also established that 33% of population lives under the poverty line,
with average pays of DM 80, while 40% of population subsists on less
than DM 44 every month.
In the course of 2000 the ICRC, some national Red
Cross societies and the Yugoslav Red Cross tried to meet the needs of
the most vulnerable social strata through the soup-kitchen program. The
number of beneficiaries at one moment reached 100,000 people. In 12
months of the program's implementation 22 million hot meals were
prepared in 115 soup kitchens and distributed in 310 locations in
Serbia. Today 70,000 people get a meal a day, and 27,000 people in
Serbia and 5,000 in Montenegro get lunch packages. The latter have been
provided by the World Food Program, since 1 November 2000.
According to the ICRC officials in charge of this
program, it is increasingly difficult to determine the poverty line, as
a continuing inflation and price hikes generate new indigents every day.
Beneficiaries priority lists are drawn up together with the municipal
Red Cross organisations and the Social Labour Centres.
It bears mentioning that the ICRC and national Red
Cross societies plan to finance soup kitchens in place until June 2001.
All the aforementioned organisations are trying hard to facilitate
self-financing of soup kitchens, that is their work on a commercial
basis, without foreign donations. This in turns means that the Serbian
authorities should make efforts to assume responsibility for the most
vulnerable groups by actively supporting the revenue-making project of
Red Cross soup kitchens.
But vulnerable groups and social cases would be
affected fatally if foreign donations were reduced or scrapped, as the
country is yet to kick-start its production and launch market economy
and transition process. "G 17 Plus" experts estimated that it would take
Serbia about 19 years to recover. Without donations, the current crisis
would turn into a humanitarian catastrophe since completely devastated
and ruined country would not be able to provide food and heating for its
population this winter. Catastrophic electric power supply was somewhat
improved by the foreign-funded electricity purchases from neighbouring
countries.
Joint ICRC and Yugoslav Red Cross program since June
1999 ensured humanitarian assistance to displaced persons from Kosovo.
Refugees from Croatia and Bosnia were covered by the UNHCR programs. Of
225,000 registered displaced persons from Kosovo, 185,000 are
beneficiaries of the aforementioned program. Namely under the program
they get a monthly food package per person and bimonthly hygienic parcel
per family. Food package contains 10 kilograms of flour and 10 kilograms
of other victuals.
The ICRC shall for the first time introduce criteria
for distribution of individual packages on 1 January 2001. This will
limit the number of beneficiaries, that is earmark the assistance for
the most needy. Food package shall consist of 12 kilograms of flour, 1
kilogram of beans, 1 kilogram of sugar, 1 kilogram of pasta, 1 litre of
cooking oil, 500 gr. of slats, 250 gr. of canned meat, 250 gr. of canned
fish and 100 gr. of yeast. This will help meet monthly food needs of one
person. Hygienic packages to be distributed twice a month are intended
to meet individual needs. In the past period this ICRC-Red Cross program
was boosted by hefty donations by some Red Cross national societies,
namely the Finnihs, French, Italian, German and Swiss RCs.
But all humanitarian organisations, notably the ICRC,
are increasingly pressured by local population to provide for more
assistance in kind. For example among beneficiaries of soup kitchens,
aside from retirees there are many jobless, Roma, employees on forced
leaves. According to some researches most threatened are middle-class
members..
Stratification and fragmentation of the society is
followed by the family bust, which in turn leads to a growing juvenile
delinquency. The young ones are attracted by new heroes, notably
criminals and war veterans, and they want to emulate them. Very young
people are becoming regular substance abusers. Some start using drugs at
the age of 10, thus entering a vicious circle of
drugs-criminality-drugs. Children perceive their middle-class parents as
losers, failed people. And children want to admire the brave, the
successful ones, those who belong to the circles close to the former
regime, criminal gangs and shady business circles. Zoran DJindjic, the
Prime Minister-designate told weekly Blic News (27 December 2000) that
only those who were closely associated with Milosevic's regime were
allowed to engage in profitable private business.
5. Corruption and criminal activities as
preconditions for survival and business success
a. Generating poverty
The FRY tops the list of the most corrupt European
countries and is the second most corrupt country in the world.
Corruption in the FRY was intentionally generated by the regime, and it
is one of the most 'successful' upshots of 13-years long Milosevic's
reign. All public services and all facets of daily life are steeped in
corruption. Thus developed system economically exhausts citizens and
threatens their very survival.
Milosevic era was characterised by arbitrary rule, oft
based on discretionary prerogatives of the top power-holders and their
friends, in other words, of the newly-emerged financial and political
oligarchy. Bloody disintegration of the FRY, war and sanctions, collapse
of the old system based on totalitarian oligarchy, sudden pauperisation
of the society, disappearance of middle-class, popular fear caused by
across-the-board repression, created a milieu propitious for the new
accumulation of capital.
Members of the top establishment and their associates
used imposition of the trade embargo on 31 May 1992 as a pretext to end
the law-abiding practice. They stated that "laws can become an obstacle
in salvation of the people" and that "the state and people must be saved
at any cost." This was tantamount to a call to destroy an already
precarious legal system, and heralded an intense process of destruction
of the existing set of moral and ethical values in Serbia.
Under the newly-emerged circumstances, people from the
underworld in an eyeblink became respected members of the society. They
came to represent a model of 'decent' citizens, on whom the new set of
values and a social and cultural matrix of the society were modelled.
Ordinary smugglers became "businessmen" and sponsors. They took part in
important affairs of the state and were often vested in official titles.
They became reliable organisers and executors of any business they were
entrusted with by the top leadership.
Teams for "sanctions-busting" were set up. They were
composed of high political officials, customs officials, criminals.
Together all those shady personalities designed and realised purchases
and imports of vital raw materials, semi-fabricates and produce. They
simultaneously laundered money and sold goods in short supply
(cigarettes, alcohol, coffee, etc.) Thus outlines of a new
social-economic system emerged. That system was propelled by strong
interests of political groups and protected by the very anti-crime
structures. New business empires were born. All the national wealth was
sucked into those empires. In turn poverty of broad population strata
was generated.
In that global framework new relations within the very
business and political establishment were created. The top leadership
generously rewarded its associates, thus creating a system of
dependence. At the same time anti-corruption bodies failed to launch
investigations into financial affairs of both the top leadership and
criminals. Massive criminalisation of population creates dependence and
facilitates manipulation. This in turn kills off motivation for the
reform of society and any idea about changes.
New strata were created on a lower level. Local
monopolies were created through the right to management of urban
building land and business spaces, granting of building licenses,
legalisation of otherwise unauthorised building ventures, distribution
of street stalls operating licences. Those close to the regime and the
opposition parties amassed their wealth by running various private
companies and engaging in real estate transactions. Diaspora donations
ended in coffers of opposition parties, though their reports failed to
indicate such misappropriations. Corruption is not a new phenomenon in
Serbia, but in the past decade it grew beyond expectations and out of
all proportion. In fact it became a system of rule.
Popular belief had it that the top circles of the
ruling Socialist Party of Serbia forgot "their " people and promises, or
that the party was a good 'provider' of its membership. Hence the
loyalty of the SPS members, and even of its defectors. But this "good
care of the party loyalists" has not been a haphazard result of
circumstances, but rather a program orientation. In the years of big
promises Slobodan Milosevic wrote a book called "The watershed years" in
which he spoke about "a socialism with a human face." Milosevic thus
depicted a modern Serbia: "$ 10,000 income per capita which consequently
generates modern plants, scientific and cultural institutions, schools,
streets, hotels, shop-windows, clothes, work habits, leisure,
expectations... But it is our future, whereas we must find solutions for
the present time. Both the state and citizens should carry out this
counter-revolutionary task through institutions. But facts, reality, the
very life have demonstrated that institutions function slowly, in a
contradictory fashion, and sometimes do not function at all."
An important factor of the corruption-based rule, was
an unstable exchange rate of YU dinar. Planned and orchestrated
inflation, which peaked in 1993, not only helped bankroll the war, as
then assessed, but also helped effect re-distribution of capital, that
is its amassing in hands of a narrow circle of the ruling oligarchy.
Everything was run and controlled by a narrow circle of people.
Ministers of the republican and federal governments were simultaneously
directors of large enterprises, and prominent members of the ruling
parties sat on many management boards. All those functions and posts
were very profitable.
Both the ruling parties and opposition were
corruption-minded. How 'corruption-friendly" was the opposition became
very manifest after its victory (Coalition "Zajedno") at the local
elections in 1996.
b. New financial elite
Despite the fact that the whole society was steeped in
corruption there were only two major corruption-busting cases or
scandals. The first one was a trial of Sava Vlajkovic and V. Mihajlovic,
ministers in the republican government headed by Radoman Bozovic . They
were charged with embezzlement of DM 2 million through gasoline trading.
Lawsuit which commenced in 1993, lasted several years, because it was
intentionally protracted (evidence disappeared from the court on several
occasions!) and watered down.
Businessman and the ruling family friend, Bogoljub
Karic was involved in the second scandal. During the 1996/1997 massive
protests Karic made public his intention to run for the President of
Serbia, for the end of the regime of Slobodan Milosevic seemed to be
very near. In a bid to discredit him the Serbian print media, notably
daily Politika, then launched a smear-campaign by extensively probing
into Karic's shady business deals and operations, and misappropriations
of citizens' contributions to the Popular Loan for the Recovery of
Serbia. After a prolonged pressure Karic renounced his candidacy and
went back to Milosevic's fold.
In the wake of its local elections victory in 1996/97
the opposition started emulating business (mis)conduct of the regime. It
engaged in many law-breaking deals, uncontested by its otherwise bitter
political opponent, the regime.
Broad population strata were corrupted through a
long-standing practices of greasing MPs for the purpose of securing the
parliamentary majority and regular, albeit minimal, payment of salaries
and distribution of staple victuals to workers on forced leaves. Such a
corruption eroded all the social strata, made them incapable of
registering the phenomenon, let alone mount any resistance to it.
After the October coup Serbia embarked upon the road
of transition, but unfortunately on the road of a negative transition.
Namely it is likely to morph from a totalitarian and undemocratic state,
based on a monopoly of one-party ideology and rule into an equally
totalitarian and undemocratic state based on unchecked power of a small
group of members of the financial-political oligarchy, who had amassed
their wealth thanks to plunder of the national property. Until
Milosevic'' ouster the new authorities had close ties with the then
regime. Thanks to those ties the ruling oligarchy was able to directly
control important institutions and engage in rampant theft.
There are indications that members of that oligarchy
played a decisive role in toppling of Milosevic, having assessed his
rigidity as a main obstacle for preservation of their capital
investments and gains. They were also worried that they might lose all
their wealth in a popular unrest or rebellion of impoverished masses. In
other words they realised that the time was up for effecting changes and
that a legal state, an with allegedly pro-Western and democratic
government could be a guarantor of their "private property." They are
very likely to try to retain a dominant role in the political and
economic scene of Serbia. Judging by the post-5 October developments,
they shall relatively smoothly succeed in achieving that objective of
theirs. It is expected that the new Serbian authorities shall swiftly
embark upon economic and political liberalisation. One of their
priorities shall be privatisation of companies and banks. Members of the
new money elite shall probably be appointed directors of those companies
and banks. Thus legalisation of the massive robbery shall be effected:
old thieves shall become new owners of big capital and members of a new
elite.
Experts talk about two kinds of corruption:
"captivating (winning over) the state" one and administrative one. The
first presupposes actions of individuals, groups or both the state-owned
and private companies taken with a view to establishing influence over
adoption of laws, decrees and other government's moves favouring their
business operations. Moreover the prime movers of such action tried to
place their loyalists and stooges in top management and governmental
posts. Administrative corruption presupposes arbitrary enforcement of
legal provisions to suit financial and other gains of individuals,
companies and groups. The best example of the aforementioned is the
Anti-Monopoly Law adopted by the Serbian Parliament. In line with the
Law the government forced butchers and bakers to raise prices, and
"Progres Gas Trading Company" headed by the then Prime Minister of
Serbia, Mirko Marjanovic, had an exclusive right to gas imports from
Russia.
Corruption generates poverty, prevents investments,
limits trade, give a false picture of public spending, weakens the
financial system and encourages grey economy. According to the data from
countries undergoing transition, foreign investments in countries with
high corruption rate are 20% lower than in other, low-corruption
countries.
c. Corrupt state
Spread of corruption was orchestrated by the regime.
For example only party loyalists were elected judges. The state
continued to corrupt them by giving them flats, loans, promotions.
Judges also received kickbacks from parties to a lawsuit, or criminal
proceedings. Collusion between the police underworld and judiciary is
best illustrated by the following statement of a criminal: "Courts of
law! People lost faith in them, now they are allegedly democratic, but
fixed fees for certain services are still in place. Judges still receive
kickbacks from parties to a lawsuit or criminal proceedings."
Milosevic's regime did not fight the all-pervasive
corruption for the latter helped delay the collapse of society and
institutions. The regime only punished its political opponents by
staging criminal and misdemeanour proceedings against them. The
opposition was often charged with treason of the country, mercenary
services, co-operation with foreign intelligence services.
Corruption helped destroy the University in Serbia.
The 1998 University Act placed appointment of professors, deans and
rector in hand of the republican government. This enabled the regime to
place its appointees in the top university positions and thus quell any
criticism at the university. In the light of the aforementioned over 200
professors left the university. After installation of the new university
authorities, acting deans were faced with the following situation: all
students who had failed to pass admission exam were nonetheless enrolled
in all faculties.
Although the media since 5 October were awash with
information on various misuses of prominent members of the past regime,
the new authorities shilly-shallied about bringing to justice many
individuals suspected of financial and other wrongdoing. This is due to
the fact that some members of former establishment helped the coup
probably in exchange for some benefits and guarantees that they would be
able to keep their wealth.
After the 5 October coup the new authorities tried to
establish the amount of money taken out of country during a decade of
Milosevic's rule. Governor of the National Bank, Mladjen Dinkic says:
"My estimate is that during the 1992 and 1993 hyperinflation about DM 6
billion, or $ 4 billion were taken out of country. Part of that money
was spent, part returned to the country, and part is stashed away,
mostly in private bank accounts (...) interestingly enough the bulk of
that money made up foreign currency savings. It was taken out as cash in
sacks with lettering " foreign currency savings of citizens". After
passing through Cyprus the money was transferred elsewhere." (Blic, 20
December 2000).
Data collected by Western intelligence services and
their colleagues from Russia indicate how "the surplus of capital" was
created in impoverished Serbia, and how it was taken out. Western
intelligence services, in the document titled "The Serb Criminal
Corporation", maintain that chief executors of that operation were
politicians close to Milosevic and bankers with a privileged position in
the financial structure created by the regime."
Investigation related to smuggling channels of the
Serb money (apart from Cyprus where since 1990 over 7,500 off-shore
companies with Serb capital were founded,) focuses on the "Russian
connection," notably "Veksi Bank" headed by Milos Mirkovic. It was
discovered that share-holders of this bank were directors of the largest
banks in Serbia and nationals of Serbia. Among the founders there were
several Russian banks, but next to their names in the founding capital
column no figures were entered.
According to some information by the end of 2000 DM
2-3 billion were taken to Russia and thereafter distributed to various
destinations in the USSR former member-countries, and elsewhere in the
world. Under the police escort money was sent via diplomatic pouches,
and was picked up in Moscow by the Yugoslav diplomats and officials of
"Veksi Bank." It is widely believed that Borisav Milosevic was appointed
the Yugoslav Ambassador to Moscow in order to oversee this operation.
Members of Milosevic's establishment also handled
lucrative imports (crude oil and other raw materials in short supply)
and exports (gold, copper, nickel, iron sheets and -electric power)
operations. After the economic embargo was put in place (1992) many
Yugoslav companies, notably those registered in Cyprus, took part in the
aforesaid operations. ATL Company from Nicosia through its
mixed-property company established in Serbia handled exports of most
precious raw materials and commodities.
Although bankruptcy proceedings were launched as early
as in 1995, nobody knows who in fact ran that bank, as directors of the
Yugoslav branch of ATL are not alive. Namely its financial director
committed suicide, and Milenko Isakov, founder of ATL died in 1997.
Added to that Zoran Todorovic Kundak, who had numerous business
connections with ATL and according to judicial documentation was
entitled to reimbursement of all expenses, was assassinated.
According to the media coverage ATL partners were the
largest business systems in Serbia: Power-Generating Industry of Serbia,
Mining Basin Bor, "Sartid", NIS Jugopetrol, Feronikl. All the
aforementioned indicates that ATL was in fact run by a very powerful
person. Documentation submitted to the Belgrade Commercial Court
indicates that top politicians were involved in the company's
operations.
Dafina Milanovic, owner of a notorious "Dafiment Bank"
vowed never to disclose the exact operations of her bank. Until recently
it was widely believed that "Dafiment Bank" was established to lure
through its high interest rate policy (25%), foreign currency savings of
citizens and bankroll the war in Croatia with that money. But motives
behind "Dafiment Bank" operations might have been of different nature.
"I shall never say what has really transpired. I know exactly the kind
of money involved in reputation-buying," says Dafina Milanovic. But the
conventional wisdom has it that Milanovic has co-operated with the top
leadership, and that her closest associate was Miodrag Zecevic, Director
of JUBMES Bank and director of the French-Yugoslav Bank in Paris.
Zecevic was arrested in 1998 and remanded in the
Parisian prison "Sante" on misappropriation charges. Namely he was
accused of "misusing the bank's funds, forgery and use of forged
documents and abuse of trust. "The French financial control discovered
that Zecevic sent a FF 350,000 invoice (instead of approved FF 150,000
annually) to Beogradska Bank in the name of compensation for insurance
costs of his wife and children. Added to that he forged the signature of
the then director Ljubisa Igic on all the invoices and cover letters of
Beogradska Bank.
It was proved that Zecevic, as Director of the
Yugoslav-French Bank, spent DM 250,000 for receptions, gifts to business
partners and trips to Serbia. The French Prosecutor also established
that Zecevic embezzled FF 5,17 million debt of the National Bank of
Yugoslavia. The bulk of that money ended in a Zurich account, which is
thought to be Zecevic's private account.
Although under the French regulations Zecevic
committed major offences entailing high prison sentences, the Belgrade
top leadership took care of Zecevic. Namely he was remanded on bail of
DM 650,000 under the following conditions: to stay in France, to
hand-over both his French and Yugoslav passports, to report to the
judicial control office twice a week and to avoid seeing a determined
number of persons relevant for the judicial proceedings. Soon afterwards
Zecevic turned up n Belgrade and was appointed director of JUBMES Bank.
Authorities accorded a special treatment to so-called
old foreign currency savings, which were simply seized from citizens on
grounds of "lack of cash." Under the public pressure and on the eve of
every elections banks paid to the poorest citizens and those with
smaller savings meagre amounts every month. At the time of such
payments-maximum amount of DM 150 for the whole year, and in YU dinar
counter-value- Mirko Marjanovic, former Serbian Prime Minister, drew out
DM 75,600. Photocopy of this payment effected by former Kreditna Bank
indicates that Marjanovic had Swiss Francs 35,364.25 and DM 30, 960.25
in his savings account. That money was drawn out in DM in July 2000.
Milosevic's regime took good care of its
representatives in the biggest media houses. They were richly rewarded
for their loyalty. Hadzi Dragan Antic, former director of "Politika"
Company owes to Komercijalna Bank, Beo Bank and Slovenian and Czech
paper suppliers DM 45 million, and YU dinars 40 millions to Inland
Revenue Services. After fleeing the "Politika" building on 5 October
2000, Hadzi Antic left behind a "Mercedes" car worth over DM 100,000 and
a large number of compensation lawsuits filed against him by sacked
workers. Former director of "Politika" also has two flats in downtown
Belgrade and a villa in Tocidersko brdo. Antic bought his first flat for
YU dinars 7. 193, 854, in 1992 as Deputy Editor-in-Chief of "Politika,"
on the basis of 20-installment credit. Monthly instalment was YU dinar
40,295, but no payments were entered in relevant documents. Thanks to
subsequent inflation Antic bought the flat for several hundred DM.
Four years later, Antic bought a new 90 square metres
flat, by taking a 20-installment, DM 270,000 worth flat. His monthly
instalment was DM 2,1000, half of his then salary, but in relevant
documents there are no records of effected payments. In 1997 he was
granted a DM 856,000 loan by Komercijalna Bank for the purchase of villa
in Dedinje, Bulevar Mira no. 20. After extensive restoration works
Dragan Hadzi Antic, Marija Milosevic, daughter of Slobodan Milosevic and
Dr. Nikola Antic, head of Gynaecological Clinic moved into several 100
square metres large villa.
After a probe into financial operations of "TANJUG",
state-controlled news agency, competent bodies filed charges against
Zoran Jevdjevic, "Tanjug"'s director for embezzlement of DM 2 million
originally allocated for the purchase of PCs. During his mandate
Jevdjevic bought four flats and one house in Belgrade and a villa in
Zlatibor. Newspapers also reported that Jevdjevic sold his 100 square
metres flat in Internacionalnih brigada street for DM 200,000. Jevdjevic
had been given that flat by the federal government after complaining
about his miserable housing conditions. After purchasing the flat for DM
16,000, he sold it immediately. Nine TANJUG employees, before the
financial auditing, had accused Jevdjevic of misappropriation of two
"Canon" photocopiers, several vehicles, computers and other technical
equipment of the agency. He also illegally drew out DM 100,000 which
were to be paid out as a holiday bonus to TANJUG employees. But no
lawsuit was taken against Jevdjevic. In fact after leaving TANJUG he was
appointed editor-in-chief of Educational Program of Radio Television
Serbia.
Privileged companies were most prominent tax-dodgers.
According to a list drawn by the relevant republican bodies, 674
companies on 30 September 2000 owed to the state over 10 billion dinars
in unpaid taxes. Outstanding debt is 5.8 billion, and 4.2 billion are
accrued interest rates. Crude Oil Industry of Serbia (901 million
dinars), Petrohemija (762 million), Agricultural Combine (537 dinars),
the Belgrade-based Electric Power Distribution Company (509 million) top
the debtors list.
A special form of fraud was building of villas for the
highest state officials in the exclusive residential area of Dedinje.
Representatives of Democratic Alternative disclosed that in Uzicka 8, a
450 square metres villa registered in the name of Milan Milutinovic,
President of Serbia, is worth DM 2 million. Fairly close to that villa,
in Uzicka 28-30, a 900 square metres palatial residence, worth between
DM 5-7 million, was built by the Yugoslav Army and the republican
government. It is believed that Nebojsa Pavkovic, Head of Chief of
Staff, is the villa's owner. Next to that palatial house, in no. 30 is
an 800 square metres house owned by the Socialist Party of Serbia. In
Uzicka 34 there is a 120 square metres house registered in the name of
Slobodan Milosevic and connected to a 250 square metres house in the
stage of reconstruction in Tolstojeva 33. Interestingly enough on the
eve of NATO bombardment it was disclosed that 1 square metre of that
house was paid DM 99.49. Mirko Marjanovic, former Prime Minister of
Serbia has in Uzicka 36, a 600 square metre house. He has another house
(600 square metres) in Uzicka 40. Borisav Milosevic, brother of former
FRY President, has a palatial house in Kacanicka 4. Radomir Markovic,
former head of the State Security Services has a luxurious villa next to
the "Crvena Zvezda" football stadium. He previously had a grand house in
Banovo Brdo suburb. Borislav Milacic, former republican Treasury
Secretary, had broad prerogatives and his signatures were found on many
documents related to property ownership of the highest state officials.
Thanks to his position he amassed a large wealth. In addition to a 100 m
2 flat in Vojvode Milenka street no. 38, he has a 50 m2 flat in Taduesa
Koscuska street no. 16, a 250 m 2 flat in Njegoseva street no. 2.
registered in the name of his mother of law. Milacic also has a house in
Koling settlement in Mackov kamen. It is a four-story building of 900
m2. His wife bought two thirds of a family house in residential area
Lipik-Umka. Milacic's two children are studying in London. Annual
tuition for each child is DM 50,000.
Zivka Knezevic, Secretary of Government of Serbia,
took decisions on flats and loans, as well as on multi-million dollar
deals, for example, construction of palatial residences in the upscale
neighbourhood of Dedinje. She was considered an informal head of
government, with whom many ministers and even Prime Minister Mirko
Marjanovic had to curry favour in order to be greenlighted certain
'contracts.' She became an all-round power-broker after joining the
Associated Yugoslav Left. She negotiated contracts with only few
privileged construction companies. For herself she negotiated the
following property: an 86 square metres flat in Cara Urosa 36, a 147 m2
flat and garage in Internacionalnih brigada 8 for her daughter Simona.
In the vicinity of Sv. Sava Churh many members of former financial,
political and police elite have their residences: for example Nada
Popovic-Perisic, former Culture Minister and ambassador to UNESCO has a
142 m2 flat, built by the Serbian government, but bought by family
Perisic ( in fact they are only paying the upkeep, and not the rent).
Zivka Knezevic bought a 142 m2 flat in Strahinjica Bana street no. 51
for her son-in-law, Vukasin Erdemovic in May 1998. Two months later she
bought another flat ( 142 square metre flat )in Strahinjica Bana street.
All the purchase were effected through Komercijalna Bank. Building of
the aforementioned flats was swiftly completed by "Koling Company,"
co-owned by Borisav Milacic. That company has a monopoly over
construction sites in Dedinje area. "Koling" adapted both the antique
shop and gallery owned by her son-in-law.
But new authorities have not reacted to the
aforementioned unlawful deals. By the end of 2000 only Mihalj Kertes,
former Director of Federal Customs Services, was detained and
interrogated. Kertes was a long-standing associate of Slobodan
Milosevic. He was totally independent in all his dealings. Milutin
Cekic, Chief Federal Inspector, stated: "Mihalj Kertes was more powerful
than the whole federal administration. We sent petitions to the Finance
Ministry, to Justice Ministry and finally to the federal government to
allow us to do the auditing, but to no avail. Our inspectors are still
waiting to get a green light to do their job." (Blic, 20 December 2000)
As early as in 1995 federal administration was
informed of misuse of prerogatives by the Federal Customs Services, for
"large sums of money were paid back to legal persons as tax reliefs. Our
repeated petitions for auditing were all turned down. Hence Kertes was
able to pay in cash DM 900,000 to Zivadin Jovanovic, former Foreign
Secretary, for alleged accommodation expenses of foreign delegations, in
summer 2000, on the eve of the SPS Congress. According to his
much-publicised confession Kertes bankrolled the police, army and health
institutions, but also the pre-election campaign of the SPS. He also
gave money to Uros Suvakovic, a strongman of the State Security
Services.
Serbia ranks among the most corrupt countries in the
world. As Zoran DJindjic has put it: "Hospitals, local self-rule bodies,
schools, customs offices and state institutions are steeped in
corruption." (Blic News, 27 December 2000). It can be in fact maintained
that all state institutions and areas of social life have been
'contaminated' by corruption. It became a 'manner of living and
communication" with tacit consent of both former regime and the
opposition. The corrupt city officials generously granted operating
licences to street vendors and stalls owners in exchange for hefty
kickbacks. Venal mafia-like state introduced a centralised system of
export and import licences and quotas, thus forcing all businessmen to
co-operate with the state officials in charge of trade. Large kickbacks
were given to all the ruling parties and their officials. Public
companies, exclusively headed by members of the ruling parties,
bankrolled from company funds the ruling coalition. Several directors,
notably former President of Chemical Combine Kostana and his close
associates from Vranje are sued for "giving money from the factory's
funds and the cash received from the Fund for Development of the
Republic of Serbia to the SPS municipal committee." (Danas, 3 November
2000). Such misappropriation cases were reported in many industrial
branches and banks.
Corruption and nepotism were also features of the
University life. According to Marija Bogdanovic, Acting Rector of the
Belgrade University (Vecernje novosti, 10 December 2000): "University in
the past period, when the state appointed its loyalists to top faculty
positions, was brought to the brink of disaster. It was degraded,
quality of classes deteriorated, dignity of professors and students was
impaired." Under the then University Act over 200 professors and
assistants were sacked.
The state in fact encouraged criminality and
corruption in all segments of the society, notably in health and
education. The new authorities are yet to deal with this outstanding
problem. If they are indeed bent on introducing genuine democracy and
the rule of law in Serbia they will first try to root out both
aforementioned social ills. However, general impression is that the new
authorities are delaying such moves. For example no indictments were
raised against those responsible for having plunged the country and
society in chaos and crisis.
6. Role and status of trade-unions
In the early 2000 it was obvious that population in
Serbia was on the verge of economic and biological disaster. After a
decade of economic decline and falling industrial output, and NATO
bombardment which totally destroyed infrastructure and badly impaired
industrial plants, hopes were dispelled as to the possibility of an
early jump-start of the remaining production. But instead of tackling in
the right way a mounting social discontent and complex economic and
social problems the regime launched another campaign of repression.
Although the repressive apparatus has long-played a key role in
protection of Milosevic's regime, the year 2000 shall be remembered as a
year of the most brutal campaign of terror in which an indeed large
number of people bore the brunt of frayed nerves of a disintegrating
state-party apparatus.
The long-established practice of media disciplining
continued unabated throughout 2000. Draconian fines economically
depleted and threatened the very media existence. But they
simultaneously filled up empty coffers of state administration and
banking accounts of the ruling parties.
Such a media stranglehold had a negative impact on
standard of living of employees, notably those living outside Belgrade.
Additional pressures were brought to bear on independent media. For
example paper-producing and supplying companies were banned from selling
paper to free media, many companies were 'dissuaded' from advertising
their products and services in such media, and the free media equipment
(contrary to laws in place) was frequently seized. Amid mounting
tensions in society, journalists and photo journalists were taken for
"interviews" to police stations. Harsh sentencing of journalist Miroslav
Filipovic was a clear sign that the regime intended to defend its
survival with all the means available. The regime-controlled judiciary
in most cases adhered to political instructions and not to their
professional rules and criteria. Protest rallies did not produce a
desired effect, and public at large, despite its condemnation of the
regime's repression, remained on the sidelines, disinterested and
apathetic.
Most successful was the regime's showdown with its
judicial and educational opponents. Newly-elected deans and rectors at
the Serbian universities, in an unprecedented show of one-upmanship or
possibly competition with authors of the infamous University Act,
quickly got rid of all the remaining "undesirable" professors. Some
Belgrade faculties (Electrical Engineering, Law, etc.) were guarded by
private security teams and their professors were banned from entering
them. But university professors did not muster up enough courage to
organise themselves and mount resistance to vandalism, ignorance and
rigid management which characterised universities after appointment of
its new deans and rectors. Barring some individual actions and those
taken by few university associations and organisations at some
faculties, all the other intellectuals succumbed (or sold out to)
initially euphoric nationalism of the early Nineties and later to a
collective despair of the decade-end.
The process of 'disciplining' the judiciary was
continued. In mid-July the Serbian Parliament relieved of their duties
another 18 judges, accusing them of "the opposition political work." In
other words they were blamed for failing to deliver harsh sentences to,
for clearing of charges, or not instituting proceedings against the
regime's political opponents.
Once the federal and presidential elections were
called, the repression against political opponents and seditious
employees striking on social grounds or disclosing numerous
irregularities in companies and institutions operations, was stepped up.
Many top health experts (working in hospitals and institutes in Novi
Sad, Beograd, Kragujevac, Nis, Pozarevac, Vranje, Petrovac na Mlavi,
etc) were sacked. Doctors and health personnel were fired, transferred
to inferior positions, or fined on grounds of their political leanings
and professionalism (for example, for taking care of citizens roughed up
by the police and issuing medical certificates indicating the degree of
injuries sustained). As the elections approached many employees were
increasingly intimidated or pressured to join some of the ruling parties
(the SPS or the Associated Yugoslav Left.) Added to that white collar
employees were compelled to sign petitions backing the presidential
candidacy of Slobodan Milosevic or MP lists of the SPS and the AYL.
Brutal repression against young activists of "Otpor"
backlashed. Thousands of impoverished workers, employees, intellectuals,
jobless and peasants at the pre-election rallies of DOS and G-17 Plus
manifested their readiness for changes at all levels. Their clear
orientation towards the break with a corrupt and criminal regime and
readiness to embrace radical economic reforms mirrored above all their
hopes that the new authorities would jump-start the production and put
an end to a rapidly declining standard of living.
Simultaneously the failure of trade-unions to animate
or unite the aforementioned population categories to fight against many
salient social and economic ills, spoke volumes about their weak role in
the social life of Serbia. Independent Trade Union in the early years of
the Socialists rule took over the role of former communist organisations
(the Socialist Alliance of the Working People and the League of
Communists) and acted as a protector and guardian of the regime. Even
during the pre-election campaign when its membership clearly and
massively backed the opposition block, the Independent Trade union
officials continued to act as the regime's stooges by organising
manifestations of support to the state leadership, its reconstruction
campaign and "grand economic successes." Like in previous election races
model employees were compelled to take part in the ruling parties
pre-election rallies: that is, workers were on several occasions ferried
by buses from their workplaces to the rally venues to lend a picture of
massive suppo.
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