HAS THE TIME COME TO FORM A NEW DEMOCRATIC PARTY
(Continued from the previous issue)
Unprepared in terms of programs and lacking people, demagogic propaganda emerged in the press and on TV, willingly or unwillingly. Populist thinking, becoming more or less an ideology, began to cloud transparency. It seems as though the more the Government and the presidency engage in contacts with foreigners, or the more factories begin operating, or the more cases of corruption are uncovered, the more people will believe that the state has got back on its feet. There is no doubt that it must be shown that the world is helping us. But humanitarian aid is not hope. It is only survival. It is support so that people do not starve to death, and I call this more a duty of civilised Europe—partly, why not, frightened by the waves of exodus—and it does not mean profit; it means income, it means easing assistance. For this growth to be achieved, restructuring and privatisation must be carried out. Put simply, this means that work must begin, but not as before. The void left by the reform cannot be filled by showing how many enterprises have started operating and how much raw material has been secured. The most basic question is: which industries have been put back to work, and whom will the raw materials that are due to arrive set in motion? Let me remind these gentlemen of some figures: in 1989, Albanian industry was operating almost at full capacity, but a quarter of it was making losses, and was therefore subsidised by the state. Subsidies amounted to 1 billion lek, or more than a third of the budget deficit. Over these three years, losses have worsened, along with the technologies invested in during the periods of Enver and Ramiz, when the plans were being fulfilled. The issue is where the genuine investments are that will create jobs and replace our dead industry. It is precisely the start of investment that would signal that capitalism is being taken seriously. But investment requires seriousness on our part—and seriousness expressed not in words, but through reforms and laws. Then, do foreign companies have the security they need? Are they guaranteed that the state, and the executive committees as well, will not interfere? Do we offer foreigners and their families security for their lives, or do we think they will accept the same degree of security that we provide for ourselves? Populist mentality hates capitalism; it hates the fact that someone can make a profit and enjoy a better life. According to this mentality, how can one trade? Well, without them, there will be no investment in Albania. Much as we might wish otherwise, the state sector will not be able to ensure economic growth. Unfortunately, we still hold to the idea that people should not aspire to a better life, and that those who earn more and those who earn nothing should live alike. This is because, as in primitive communism, those who make money are expected to share their wealth with others rather than give others work. Recall Sali Berisha’s speech at the presidential oath-taking ceremony: «Albania has a presidential palace, but I will live in a modest apartment». This stance implies that no one should aspire to earn money and build at least a better home than a two-room-and-kitchen apartment. Must one live like Diogenes in a barrel for the people to love you? This mentality has left precisely those steps of reform that would stimulate economic growth in limbo. And by leaving the reform in this void, it makes the private sectors extremely vulnerable in the future. Does the danger not remain ever-present that the state, with its empty coffers, will increase taxes on the private sector or on farmers, the only ones who will have some income? Or that money will start being printed again? This is how populism turns everything back to where we were: populism does not let capitalism develop.
GRAMOZ PASHKO
is only a survivor. It is support to keep people from starving, and I call this more a duty of civilised Europe—perhaps partly frightened by waves of exoduses—rather than something that demonstrates any merit of ours.
Undoubtedly, a commendable macroeconomic reform was implemented: budget stabilisation, price liberalisation, wage controls, etc. But this reform has consequences, and one of its consequences is assistance. Meanwhile, people wanted to see the first signs of life changing, and, above all, for the anxieties to disappear from Albania and for work and life to begin. The latter must begin differently from before: new, productive work that is well rewarded. At the same time, monetary reform must encourage economic growth, which will
these three years, losses have worsened; the technologies installed back in the period of Chinese aid have become extremely outdated or have been destroyed. According to some very rough calculations, Albania needs at least 5 billion dollars in investment over five years to renew its main technologies. So the question arises: what does it mean to put our enterprises to work using existing technologies? What do they produce, anyway? Do they operate fictitiously and still make losses? Then where does their funding come from—from the state? From taxes, from the money taken from those who work productively!
So, according to the mentality that says our industry is working, it is just like saying we were doing just fine even in the ti-
can make a profit and live a better life. According to this mentality, the private farmer or the shopkeeper may be accepted, but when it comes to the big trader, the entrepreneur, or the person who makes money by acting honestly in the currency market and will be a future banker tomorrow, we call them speculators, sharks, etc. We raise their taxes, hold trials against them with the financial police, or send them running from one government office to another. Will we accept our new capitalists, who will make profits, invest their money, create jobs, soften the consequences of assistance, but will also build villas for themselves, own cars and travel abroad