DISCUSSION BY DEPUTY MUSA ULQINI Much has been written about the man who will lead Albania toward Europe. Others have praised the new ministerial cabinet. They have called Mr. Meksi’s government the government of hope. In fact, in my opinion, the first great test for the PD is the government program presented for Albania’s development over the next four years. Does this program fulfill the extraordinary hopes that so many people in Albania have pinned on it? The program of great hopes, the program that will lead Albania toward America and then toward Europe, has surprised me. I expected a program with little theory and many concrete solutions, with clearly specified deadlines. But this program does not meet that demand at all. For the most part, it resembles a lecture on comfortable economics. I hope I am wrong in what I say. Competent specialists are more qualified to judge this program. A four-year reform program cannot be convincing if it is not concrete, if it does not clearly specify when and how some of the biggest problems currently troubling people in Albania will be solved. Compared with the PD’s electoral program, the government program is quite deficient in terms of concrete solutions. At least the electoral program had figures and deadlines. This request may seem paradoxical to some. I would remind gentlemen of the fact that when people voted for the PD, among other things, they also trusted the figures, deadlines and bombastic promises in its electoral program to solve today’s pressing problems. Here are a few concrete examples: 1. The government program discusses taxes, but only in general terms. There is nothing concrete. At the very least, let me point to what was promised so often to the farmer and emphasized two or three times in the PD’s electoral program: “For three years, the farmer will not pay any taxes.” 2. The electoral program says that “the PD will balance the state budget no later than 1993.” This promise is somewhat surprising, given that 65 percent of the rural population will not pay any taxes for three consecutive years. Even more surprising is the fact that this promise has been completely forgotten in the new government program. 3. The government program talks a great deal about the full liberalization of prices. It is quite optimistic about the benefits this liberalization will bring in raising the general standard of living, but it fails to specify when prices will stabilize. People are very sensitive to this vital issue. We all want to know: how long will prices continue to rise? We also want to remind the new government that the PD’s electoral program explicitly states that price liberalization would stabilize prices within no more than a year. 4. For ordinary people’s standard of living, the subsidizing of food products sold at fixed prices is vital. The government program discusses this issue in very general terms. It does not specify how many food products will be sold at guaranteed prices, or how long this arrangement will continue. Meanwhile, the PD’s electoral program states: “For one year, the prices of bread, oil and sugar will be kept under control. After one year, the— (Continued on page 2)

A meeting of the PS organization in the village of Prongji, worthy of being taken as an example. Prongjla is a village of 55 houses. Its PS organization has 22 members, five of whom joined after the PS was formed, and one, Koço Gjika, was admitted on April 20. Although it did not win the elections, the PS has entered my heart, he said, and I want to be a member. The organization held a constructive discussion. It made criticisms and engaged in self-criticism over its failure to function properly in recent months, even though these were times of particular problems and tension. For this reason, it also released its chair from the post and elected a comrade in her place, Karafilë Reçka, aged 25. In the village of Prongji, most people voted for the PS in the March 22 elections. Analyzing this fact, the organization stressed that victories are secured through the individual work of party members with people during the campaign. It was recommended that this form of work remain the principal way of connecting with the masses, and it was decided that in 10 days the organization would meet again to admit new members, a trend evident in this village. “Build up the PS,” said veterans Zego Bala and Jonuz Heba, “because it defends our social groups and we see our future in it; but our main task remains increasing our ranks, because that will keep the party fresh and connected to the people.” The village’s everyday concerns were also discussed, such as progress in the distribution of land. After becoming acquainted with the draft statute and the documents of the PS’s first congress, the organization’s members expressed their views on them. They said they opposed the PS’s regional coordinating council, since it seemed like an unnecessary extra link; they also offered opinions on how party dues should be collected and on the work to be done in the local government elections. THANAS DINO

FINANCIAL AGREEMENTS BETWEEN THE GOVERNMENT OF THE REPUBLIC OF ALBANIA AND THE FEDERAL REPUBLIC OF GERMANY Yesterday in Tirana, the “Agreement between the Government of the Republic of Albania and the Government of the Federal Republic of Germany on Financial Cooperation” (project: Program I for securing livelihoods in particularly poor regions) and the “Agreement between the Government of the Republic of Albania and the Government of the Federal Republic of Germany on Financial Cooperation (project: Improvement of facilities for students at Tirana’s universities)” were signed. Yesterday in Tirana, the “Agreement Government of the Federal Republic of Germany on Financial Cooperation” (project: Program I for securing livelihoods in particularly poor regions) and the “Agreement (project: Improvement of facilities for students at Tirana’s universities)” were signed. The agreement for the first project provides for the Government of the FRG to grant up to 20 million marks in non-repayable funds (as a gift), to improve conditions in healthcare and drinking-water supply in the districts of Kukës and Kavajë. The agreement for the second up to 5 million marks as a loan on concessional terms, to improve sanitary conditions and food provision at the Student City in Tirana. The agreements were signed on behalf of the Albanian side by the Minister of Trade and Foreign Economic Cooperation, Mr. Artan Hoxha, and on behalf of the German side by the Ambassador of the Federal Republic of Germany in Tirana, Mr. Dr. Claus Voelless. (According to ATSH)

The Government of the Republic of Albania, respecting the right of peoples to self-determination, relying on the fundamental principles embodied in the Helsinki Final Act, the Paris Charter and the other CSCE documents, and in pursuit of its policy of good-neighborliness, declares that it recognizes the independence of the Republic of Bosnia-Herzegovina. Steps to establish diplomatic relations with this sovereign and independent state will be taken on the basis of a bilateral agreement. The Government and the Albanian people, while welcoming this important event for the people of Bosnia-Herzegovina, at the same time express their conviction that the creation of this new and independent state will further help in resolving the question of the former Yugoslavia, so that [they can] be equal in the European community, bringing a definitive end to the injustices inflicted upon them. The Government of the Republic of Albania wishes on this occasion to remind the entire democratic world, especially Europe and the USA, to contribute vigorously to resolving the just demands of the Albanians living in their own territories in the former Yugoslavia, so that they may to the injustices inflicted upon them. 21.4.1992.

Opinions on the government program “Food prices will be liberalized to reflect developments that have already taken place in the market.” (From the new government’s program) “Food prices will be liberalized to reflect developments that have already taken place in the market.” (From the new government’s program) We are all consumers. But we are not all financially equal when faced with a shop window full of goods. All political forces support a market economy. But not all alternatives are the same. The government of Mr. Aleksandër Meksi has decided to liberalize all food prices. Consumer: “there is no longer a basket of guaranteed goods or fixed prices.” How will the poor budgets of the vast majority of the population cope with this “harsh” liberalization of prices? To find out, we asked for opinions from various people whose incomes are below average, but not from those who have been unemployed for years, or others who receive 80 percent of their salary, nor from those living in remote mountainous areas, a group that is already experiencing difficult days. Myzafer Ahmati At this moment of transition, the basket must be preserved and not reduced. This is because of the difficult economic situation. The Albanian people cannot live without the existing basket prices. The underprivileged classes will find it extremely hard to maintain their standard of living. It would be an unforgivable mistake to liberalize basket prices immediately, along with the “basket.” The consequences would have social and economic effects. This does not mean that reform should be obstructed. Liberalization of the prices of the basic goods on which our population lives today must go hand in hand with increased production and more imports. Consider what would happen under our economic conditions if basket goods were liberalized. Sugar would cost 400 lekë, butter 500 lekë, cheese 600 lekë, and so on. At least that is what they sell for today on the black market, where only one intermediary sets the price, but the “basket” also exerts pressure. Esat Bashari, economist It would be good for the prices of our food industry to be ceilings set by the state. For example, cigarettes, beer, pasta, textiles, etc. Current practice shows that these prices are several times higher than the producer’s selling price. This profit, realized in the sphere of circulation, is economically and politically unjustified. The producer’s selling price takes account of the value of the goods, while the price paid by consumers in the market, after passing through several hands, is so high that it defies all economic logic. If the state’s organizing and controlling role in this matter is not understood, that would be an economic [text unclear] and a great calamity. During this transition, the state’s role—not as it was before, but in a limited form—is indispensable. In every country in the world, the role the state plays over prices in situations like ours is felt in one form or another. I believe the state should also exert influence over widely consumed imported goods that are not expensive. The state must find practical mechanisms to encourage both the firms that import and sell and the people who buy. The state should not pursue extremist economic policies, but balanced ones. These measures are necessary to prevent a repeat of the practice of the stability government, which allowed goods from our factories and imports to be sold at liberalized prices without properly establishing the tax system. This sacrifices the interests of the state budget, which continues to increase the deficit, creating difficulties for monetary circulation as well. For state services too, such as urban transport and telephone services, the state should play a supportive role in setting tariff levels. Goods sold by farmers and those produced by private businesses should be fully subject to supply and demand. Xhulieta Zemani, employee, and Mustafa Lofa, manager of the food shop no. 77 of the Italian firm “DICA”: For now, we are against liberalizing the prices of basket goods and other food products in general. We say this both as trade workers and as consumers. How will buyers meet these prices when we know the level of purchasing power of wages? As traders ourselves, even when we do not have basket goods in stock, we feel customers’ hesitation over prices. Liberalizing basket prices would mean another heavy burden on consumers’ shoulders. And we must bear in mind that a large proportion of them today, on 80 percent [of their salary] or even less, with assistance, find it almost impossible to meet their minimum needs. Artan Jonuzi, student at the Faculty of Economics: In today’s conditions, when it is not known how long it will take for wage indexation to keep pace with price changes, liberalizing basket goods as well seems to me likely to have serious consequences for the mass of consumers. Implementing this government objective at present would mean that, in addition to the current black market, another black market would emerge, because uncontrolled basket prices could in effect amount to that. In such a market, very few people could be satisfied. What the government program calls for may be normal in a developed market economy, but not in the first steps, where we are today. Prepared by: DEDE KOLA SOKOL GRUDA

inflicted upon them. 21.4.1992. Reform: the only alternative for development Who will pay the high price of reform? The long-awaited moment has arrived for the majority of the population, now utterly exhausted by the political battle. The Democratic Party government now stands before it with its program, seeking a vote of confidence and assuming a historic responsibility: that of creating today’s Albanian society. Evidence of this mission can also be seen in the efforts to prepare and present this program. I want to emphasize from the outset that, at its core, it contains not only a strong desire to transform the Albanian economy into a capitalist market economy with a social dimension, but also a desire to transform it into a market economy of the harsh capitalist type, regardless of its social consequences, how much the Albanian economy can bear on its shoulders, and how far the ordinary consumer, whether urban or rural, will be pushed in its race. The catastrophic state of the Albanian economy, the result of 45 years of mistaken economic policy, of a policy directed through the command methods of centralized planning, and of all kinds of theories dreamed up and applied during the past year to wreak havoc, bring everything to zero, start over, and so on, has placed us all before the need to accept the alternative of reforming the economy—in other words, continuing without interruption the economic reform already begun, as the only path to salvation for our economy and our people. This is what Mr. Meksi’s cabinet is trying to present to us in its program, but judging by the instruments and mechanisms it offers in this program, despite the rounding off— ANASTAS ANGJELI (Continued on page 2)

As we have learned from the Tirana press, Mr. Pashko, regarding the isolation of Skrapar with barbed wire, has also ordered the forty residents of Kuçova and the surrounding villages not to ask us what this is all about. Since Mr. Pashko has still not given an answer, and since such empty ideas occur to him, we ask whether it is true that not only Skrapar, but also the two areas of Berat, will be isolated. One might think that the boundary of Pashko’s geographical map of barbed wire will be this: Pashko’s Lower Bridge will be the limit; the right bank of the Osum River will climb up to Cezma e Roshnkut, [part of the text is illegible]. Lumas, Perondi, Tapl, Kozaré, to reach the left bank of the Devoll River and climb uphill to encircle the entire district of Gramsh, which also voted for the PS. The Fier area, where Kastriot Islami won, poses something of a problem; it is also a natural area and resembles Kuçova as like as two peas in a pod. There is information that, according to Mr. Pashko, the wire is no problem, since it is produced in large quantities in Shkodër, but so far the problem remains the barbs. “Shkodër produces quips, not barbs,” those interested in the matter have replied. The question of who will attach the barbs is delaying the encirclement a little. ARBEN TARANI (Taken from the newspaper “Rrënjët”, the organ of the Socialist Party of the district)

CONSUMER:

AN OBSERVATION FROM PARLIAMENT In the aforementioned column, “Today in the People’s Assembly,” many people noticed the absence of the gloomy presenter, Mr. Gurashi. Was he busy, was it a coincidence, or… This concern arose because recently he has withdrawn, in fact, from interviews with foreigners. This, they say, he did willingly, because he does not know any foreign language. As for his absence from the column— [some] explain it differently: Sensitive Fonsi was absent because he did not want to convey in his own language the proposal that “the Party school should not be recognized as higher education.” Because he was reminded of his own “misfortune”: he has no higher education, apart from the Party school. In any case, Mr. Gurashi is not incapable of covering up this little detail with his great art of adaptation. THE OBSERVER