Crisis – Seven Questions In Search Of Answers
Case study - Croatia
 
 
The Government of the Republic of Croatia recently (February 26, 2009) announced its «Antirecession measures» finally admitting that Croatia is facing recession. Leading political parties have given their proposals and criticisms, as well as the Institute of Economics, the Croatian Chamber of Commerce, The Croatian Employers Association, the Association of Croatian Bankers, and others. Somewhat earlier the Government has established its Economic Council. Economists speak and write about this economic crisis.

 
First question: Antirecession measures are quite late in Croatia! Why? How is it possible that the managing director of the IMF R. Rato in October 2007 speaks about the financial crisis as the greatest problem facing humankind, and that throughout 2008 everybody discusses this economic crisis, while in Croatia those who are responsible to propose measures are silent? Maybe, it is prudent not to scare a sick person with their real health status, but there is no justification if the suffering of a patient is ignored and if the patient is prompted to do things which will only aggravate their condition. And this is what is done. A great sin of omission. Are those responsible incompetent or do they do it because of other interests?
 
Second question: Those that should act speak about a recession and avoid using the word «crisis», always implying that the recession is coming from abroad - as if it is a flu pandemic or a natural disaster; we, and particularly they, are neither responsible nor guilty for it. The President of the Croatian Chamber of Commerce correctly said – and we all know it – that the economic crisis in Croatia has lasted several decades already and it is caused by our selling all that we have and by reckless borrowing. Thirty years ago our shipbuilding industry, PLIVA and Rade Končar were leading firms in Europe, we had Sumamed and Vegeta, and together with Hammersmith Hospital from the UK our Institute «R. Bošković» has been the leading producer of short-lived radiopharmaceuticals, and magnets produced by R. Končar have been used in many European laboratories. Where is this today? Why? The present generation is certainly no less capable than those of 20-40 years ago, they are better educated now – or they should be. Work is not rewarded now, work is not important now, creativity is not important now.
 
Third question: The only resource we and all other nations have - are people and their creative potential. No measure should restrain, confine, or limit them. Actually, the goal of all political actions should be to stimulate this underutilized human potential. How? By employment, by education, by sincere and trustworthy leadership. This is the duty of political activity and President B. Obama is a role-model. Contemporary science and technology enable it: through email, the web, facebook, etc. The solution to the problems and challenges we are faced with requires that we act collectively – all together! Why do we blame physicians, teachers, nurses, professors and all those on whom the quality of our lives depend, and why do we not try to improve all these sectors, particularly the governance sector? The employment rate in Croatia is among the lowest in Europe. We have destroyed our workforce. We have to create jobs that contribute to production and to exports and that increase the reputation and the esteem of our country!
 
Fourth question: If the analyses of the World Bank and of the International Labour Organization are correct and economic inequalities - not based on work and creativity - are the cause and the roots of decreasing quality of life, that in countries with high inequalities life expectancy is 15 years lower, if in countries with high inequalities corruption and crime rate are higher and democracy threatened, why do we stimulate economic inequalities? Why do not we tax the extreme rich and their spending on luxuries and who are not concerned with our homeland?
 
Fifth question: This crisis is economic, ecological, social and moral and it concerns energy. Why do we attempt to solve it by just partial economic measures? The budget has not been real and the proposed changes are inadequate and unbalanced. Do we believe that citizens will be able to bear another rebalancing of the budget, another reduction in their quality of life? We really have sold everything that we have. Through our work and our creativity we have to go beyond the crisis and turn it into an opportunity. We have to show that we value work and creativity, that for us it is an ideal, and not merely a rule. Our budget has not ensured us a niche of success, neither will the proposed rebalance.
 
Sixth question: it is the duty of intellectuals and our leading scientific research intitutes to deal with this crisis. Why are they silent? Are they afraid of losing the security which derives from narrow specialisation, are they frightened or do they have their hands tied? What has frozen them? Or who?
 
Seventh question: can this global crisis be solved only through the old policy measures which caused it in the first place? We doubt it – new ideas are needed. The world’s leading economists and responsible politicians with vision speak of this. New ideas and new policies do not repeat the unsuccessful models of the past, but maybe there s a need to learn from mistakes.
 
This crisis is global and local. Every country has its own history, its own characteristics and its own specific problems, which with its own strengths it can solve, but we must always be aware that we are part of an interdependent and interrelated world.
 
The only thing worse than the policy measures is the debate about them!
Our public information services dedicates less than a fifth of their space to the crisis and attempts to solve it. The Croatian Parliament not even that much. When they try, they unnecessarily confront interest groups, instead of connecting groups together to solve what is our difficult collective task.
 
It is true that we have earlier been faced with difficult crises. This is the first global crisis – the world is now truly global. The worst would be if we stifle discussion, if we fear arguments and ideas! The responsibility is ours!
 
Web site www.vrijemeje.com is devoted to discussions based on argumentation about the crisis and the ways of overcoming it and turning it into an opportunity.
 
Zagreb, 29.3.2009. Ivo Šlaus