Yugo Pres. Candidate Kostunica's Program (excerpts)

[Borba100@xxxxxxxxxxx]

Below are the introduction to and key passages from the program written by
G17 and adopted by the "Democratic Opposition" in Serbia (DOS) and their
candidate, Kostunica.

G17 is the neoliberal NGO/think tank in Belgrade.

I urge people to read it carefully.  For example, # 30 reads as follows:

"30. Solutions based on direct foreign investment (privatization of
government-owned companies and industry)."

Note what G17 has put in parenthesis!

Best regards,
Jared Israel
www.tenc.net  [emperor's clothes]

***

INTRO AND KEY PASSAGES

Democratic Opposition of Serbia
PROGRAMME FOR DEMOCRATIC SERBIA

The Non-governmental Organization G17 made the Programme of economic and
constitutional-legal reforms required by the new authorities, in case they
come victorious out of the September federal parliamentary and presidential
elections, in order to initiate democratic changes of the Yugoslav state and
society. The Democratic Opposition of Serbia (DOS) was offered the Programme
only after the parties had been united and presented a common presidential
candidate. Eighteen parties or coalitions within the DOS acknowledged the
Programme as their electoral platform. The DOS candidate for president Dr.
Vojislav Kostunica did the same. It will be presented for public debate to
all citizens of Serbia.


FIRST, we shall adopt the Declaration on urgent preparations for the
introduction of the new Constitution with purpose of eliminating the existing
coinstitutional chaos. The new constitutional and legal stipulations will be
accorded with modern legal and civilization standards, particularly regarding
the spheres of human liberties, protection of civil and minority rights,
parliamentarism, accountability of authorities and rule of law. The
Declaration will acknowledge the necessity for the decentralization of the
state, particularly in regards to the regionalization of Serbia and
affirmation of autonomies of Vojvodina and Kosovo and Metohija...

SECOND, we shall adopt the Resolution to abolish the present economic and
political blockade of Montenegro, and obligate the highest state bodies to
start negotiations immediately with the legally elected leadership of
Montenegro on the character and functions of a future state community between
Serbia and Montenegro.

THIRD, we shall require of the future Government to promptly submit a
programme of concrete measures to the UN Security Council which would enable
a consistent implementation of the Resolution 1244 on Kosovo, preserve the
territorial integrity and sovereignty of Serbia, guarantee the right to
peaceful and secure living to all inhabitants of Kosovo, and stimulate its
integration with new democratic state institutions. We shall particularly
insist on urgent solution of the matters concerning the kidnapped and
murdered persons after the KFOR had been deployed.

FIRST 100 Days

Collection of Reform Economy Laws

Laws to immediately enable the reform of the monetary system and initiate
reform of the fiscal system will be proposed, this including the proposal of
law on balanced budget. The present law on privatization will be
substantially revised. A law on social care and relief of poor will be
proposed. The law on foreign trade will be changed, thus enabling
considerable cut and balance of customs....

The First Year of the New Government

The Reintegration of Yugoslavia and Serbia into the International Community

1. The inclusion into all relevant international institutions that would
secure the immediate withdrawal of all sanctions, including the so-called
â??outside wallâ?? sanctions.

2. The immediate inclusion of Yugoslavia and Serbia into the Pact for
Stability of Southeastern Europe and accessibility to financial means for
reconstruction and Yugoslaviaâ??s economic recovery, secured by way of
international donators.

3. The reinstitution of Yugoslaviaâ??s membership into the worldâ??s most
significant financial organizations (namely IBRD and the IMF), that will give
our country access to world capital markets and create means for foreign
investment imperative to the countryâ??s economic reconstruction.

4. The prompt resolution of succession questions with ex-Yugoslav republics
and, on that basis, the acquisition of necessary financial means that will
make possible membership in the European Union.

5. The integration into all regional political and economic activity, with an
emphasis on free trade.

6. The application of modern economic ideology to the Yugoslav economy.

7. Radical economic reforms.

8. Balancing of the federal budget and initiation of fiscal reform.

9. Meaningful reduction of taxes and elimination of the resulting incentive
not to pay them (tax reduction will augment tax revenue).

10. The increase of public revenue through legalization of the transactions
of the â??gray economy.â??

11. Growth of revenue based on taxation of products that were intentionally
pushed into the â??black marketâ?? by the government (cigarettes, coffee,
gasoline, etc.)

12. Reduction in public spending

13. Demilitarization (elimination of spending caused by unnecessary tension
between the international community and Yugoslavia, represented by a
government repressive to its people).

14. Rationalization of public administrations by elimination of unnecessary
ministries, federal economic chambers, and other aspects of inefficient
public spending; assigning of new priorities and discipline in budget
spending (priorities: health, education, judicial system, unemployment, their
training and new employment, social protection, culture, retired workers,
farmer subsidies/incentives, reformed police)

15. Radical and timely simplification of the taxation system (will be based
on fewer tax brackets, as opposed to the current system shaped by 250

16. The reform of tax administration and the creation of a tax code.

17. The initiation of a tax system reform that will emphasize the institution
of the â??value added taxâ?? (VAT).

18. Reform in directing public spending, including establishing a Treasury
and a system of public acquisition.

19. Establishing elements of an integrated information system in the fiscal
sphere by securing electronic registries.

20. Establishing of a stable currency.

Option 1: Establishing a fluctuating exchange rate system accompanied by an
emission of a new convertible currency (assuming foreign hard currency
reserves are granted to aid the central bank in keeping the exchange rate
stable).

Option 2: Establishing a two-currency system, in other words legalizing
commerce in German Marks.

21. Restoring of confidence in the financial system and bank reform.

22. The complete integration of the Yugoslav banking system into the
international financial system.

23. The beginning of reform of domestic banks and the freedom of foreign
banking institutions with good reputations to enter the Yugoslavian banking
industry.

24. The beginning of repaying the hard currency debt to the people and
restoring domestic savings.

25. Crediting producers and population in general.

26. The immediate modification of administrative interest rate policy based
on affirmation of market conditions and criteria.

27. Financial support to initiate macroeconomic reform.

28. A foundation for macroeconomic stabilization of Yugoslavia (the
stabilization of currency and overcoming of budget difficulties).

29. Direct financial aid from abroad (financial acquisition from donator
conferences, credit obtained from international financial institutions) that
would enable the new government to, from its inception, carry out economic
reform in a stable manner.

30. Solutions based on direct foreign investment (privatization of
government-owned companies and industry).

31. Solutions based on the legalization of the â??gray economyâ?? and activation
of domestic savings, following the legalization of currency exchange and
banking system reform.

32. Price liberalization (controlled prices provide an unnecessary protection
of all categories of the population).

33. The gradual withdrawal of prices that â??subsidizeâ?? the poor, created by
the current government in an attempt to hide the social implications of its
policies.

34. The reprogramming of foreign debt.

35. The request for reasonable expectations in the repayment of the foreign
debt.

36. The request for a partial elimination of the foreign debt.

37. Liberalization of the inter-republic and international trade policy.

38. The withdrawal of all conditional quotas on imports and exports (except
for agriculture), and their replacement with tariff rates.

39. A meaningful decrease in the level of customs tariffs so that their value
is equal, accompanied by relevant budget compensations from the European
Union.

40. The securing of preferred products for export to the European Union.

41. The elimination and withdrawal of all factors limiting trade with
neighboring countries.

42. The liberalization of legal and administrative regulative mechanisms for
exports and imports.

43. Privatization:

Privatization must be carried out relatively quickly in order to close the
enormous gap between Yugoslavia and other countries in transition.
Privatization will be mandatory.
The privatization process must be transparent.
Privatization will mainly be done through direct sale of government property,
keeping in mind the huge public debt that must be remedied.
Privatization will stimulate the development of the capital market.
44. New agrarian policy:

Considering the fact that Serbia is naturally tied to agriculture, the
government will prioritize renewing and restoring confidence in its
relationship with farmers (which was lost when the current government failed
to pay its debt after taking over the production of certain products).
Economically stimulating agricultural production while at the same time
placing an emphasis on protection from foreign competition.
A stable system that provides a guaranteed price index, that will, in case of
low market prices, adequately compensate producers from a specially formed
agrarian budget.
New mechanisms for crediting the agriculture from real sources (commercial
bank credits, investment of organizations that specialize in the processing
and transportation of agricultural products, term contracting, â??futuresâ??
transactions on goods, insurance programs), that will enable farmer
acquisition of modern agricultural equipment, the renewal of agricultural
funds, and the introduction of new technology in production.
45. Ensuring social and health security for the people.

46. The transformation and meaningful strengthening of the fund for children
in order to remedy the disturbing reduction in birth rates.

47. Citizens most affected by the tragic occurrences of the past ten years
(refugees, unemployed, retired workers, the poor) must be socially insured
from a special fund.

48. The fund will also be used for short-term improvement of health services,
until gross domestic product is high enough to enable the countryâ??s own
health service system imperative to the biological survival and future
prosperity of the nation.

49. This one-year fund for overcoming budget difficulties will partly be
formed from the sale of government-owned capital, but mostly from foreign
contributions and credit provided by international financial institutions.

50. Without securing such a fund at the beginning of the new governmentâ??s
term, there is little chance that economic reform would achieve success, as
social and political pressure would arise, resulting in public distress with
the reform process and the impossibility of normal governmental functioning.

51. The introduction of big investment into the infrastructure.

52. The renewal and modernization of the electric and energy infrastructure.

53. The construction of major transportation networks, including highways,
rail systems, and gas and oil pipes.

54. The rehabilitation of canal networks and other water systems in the
agricultural plains.

55. The development of a telecommunications network.

56. The realization of the most significant local infrastructure projects.