Danica Popovic, professor at Faculty of Economics in Belgrade - Serbian economy is choking, halt party employment

Danica Popovic (Photo: Lična arhiva)

We have one failed attempt of privatization of Zelezara Smederevo behind us which made the companycloser to a number of state-owned companies whose privatization failed withouteven starting. Even if we closed our eyes when it comes to examples, it seems privatizationis one of the words which makes citizens of Serbia most uncomfortable. Andhow it would not be so, regular professor of the Faculty of Economic Sciencesof the Belgrade University Danica Popovic, thinks but she firmlybelieves Serbian economy cannot survive from state-owned companies run by partymanagers.

In her interview for eKapija, Danica Popovic "blames" parties fornumerous problems in Serbian economy, pinpoints PPP model as a positive andmakes a short review of the reforms in Serbia and Greece.

eKapija: Why is privatization such a large issue for citizens ofSerbia?

- When you survive what the citizens of Serbia survived, no scientific argumentswill help. They saw it with their own eyes and they get everything. Privatizationis a set up theft and that’s it. Why is that so? Because this is how it was. Itis as if someone convinced you that you’re going on a surgery and then you seethey take out organs and sell it abroad. It is really a serious question how topersuade people now that surgery is a salvation.

eKapija: Why is bad privatization still better than no privatization?

-It is not. Never. Bad privatization is only continuation of theft. It hasalways been this way and will be. Therefore, the best thing is to start step bystep and set up the rule of law. To make tycoons go bankrupt where they reallyare but the law is not imposed on them. Set the court free first and then make operation.

eKapija: Who is responsible for a large number of companies which in thefirst ten years of 21st century went bankrupt very quickly after oneor two privatizations?

-There is really a number of sad stories. Some companies were acquired onlyfor location and because the land was registered as a part of active capital.Therefore, Luka Beograd was acquired to wait for the time when the land willbelong to the company or a private entity like it is done in the world and tobuild a residential zone in Luka. Why does then a man invest in Luka? It isabsolutely stupid. Since he does not pay tax, he did not go bankrupt.

eKapija: Why positive PPP examples are not mentioned? Why don’t we haveit anymore?

- Because there is a censure and one cannot say when one wants. That is, youcan but on side portals at two in the morning in media. PPP is a good way toavoid tycoons and thieves and political parties which nobody wants to avoid.

eKapija: How do you estimate current success of some reforms of "cost optimization" in our country?What results can we expect from the reforms and how appropriate are they?

-It is not the reform but the way to go bankrupt. It is a prerequisite ofsurvival. Departization is for instance a reform. Creation of legal state. There isno such a thing.

eKapija: How do you comment the latest reforms of Tsipras government inGreece?

-Nothing will happen out of that and they have been communicated it clearly.Greeks will have to return their debts and if not, they will have to leave theUnion and repay debts under worse terms. And one more thing, it is so easy to forgive others’ debts! When youask why Germany does not forgive debt to Greece, think about the fact how manytimes you have voluntarily and laughingly forgive a debt. Never? Of course.

eKapija: What halts SMEs in Serbia?

-Parties. All of them. Both those in power and opposition. The ones whichare only waiting to regain the power and continue “managing “economy. To survivewhen they do not have power, the power gives them to manage companies, at leastat the local level as they like to day and they hire there their people and getfunds for party life. All parties go for it, want it and all of them know thatany other system would mean their end. It would be pointless, wouldn’t it?

eKapija: How would you estimate current situationin our economy when it comes to attracting investors? Where is the greatestpotential for investing?

-Potential is where business people see it. When there is a regular environment,the one who knows the greatest potential can get rich fast. When a regular environmentis made, entrepreneurial people immediately react and now they leave abroadwhile the older ones and entrepreneurial bow and join parties or retire. Thereis no other choice.

Nevena Cukucan