Source: http://www.monde-diplomatique.fr/en/1999/04/05serbia.html

Accessed 17 April 1999
NATO BOMBING, ECONOMIC COLLAPSE

Make or break for Serb regime


The initial effect of NATO bombing has been to arouse nationalist feeling in Serbia, for all Serbs are united on the issue of Kosovo, the "historic heartland" of the nation. President Slobodan Milosevic has made keeping the province with its Albanian majority within Serbia the springboard for his rise to power. But The country is in deep crisis. Even before the bombing, Serbia was already diplomatically isolated and on the verge of economic crisis marked by poverty and corruption. If the regime manages to survive, it will be thanks to Milosevic's tactical skills. He has succeeded in isolating or rallying a discredited opposition. But for the people, disgusted with politics, the main concern is to survive from day to day.

by our special correspondent THOMAS HOFNUNG *


Revolution Boulevard, one of Belgrade's main thoroughfares - leaning up against the dilapidated buildings, cigarettes dangling from their lips, are men huddled in great-coats who hiss at passing foreigners "devize, devize" (change money, change money). At a time of severe economic crisis, the "currency dealers" as they are known here, are trying to survive by buying and selling precious Deutschmarks. Banks will give you a fixed rate of six Yugoslav dinars to one mark, but in Revolution Boulevard the rate has risen from eight to nine dinars in the space of just a week.

Along that same avenue others have adopted a different survival tactic: from the boots of their little Zastava cars parked along the pavement they sell a jumble of underwear, tubes of glue, bars of chocolate and contraband cigarettes. According to a Belgrade resident who regularly turns up to change his marks on the avenue, the vendors include many pensioners, but also teachers, engineers and even soldiers.

Some ten years back, the residents of Belgrade were not much concerned with the problems of daily life. The Yugoslav capital, like the rest of the country, was buzzing with a nationalist fever that Marshal Tito had long managed to contain. On 28 June 1989 - 600 years after Prince Lazar was defeated by the Ottoman Sultan Murad's troops at the Field of the Blackbirds - Slobodan Milosevic gathered a crowd of more than a million on the outskirts of Pristina (Kosovo's main city). The hour of revenge - or so they believed - had come. "Serbia", Milosevic told his transfixed audience, "is facing new battles, battles that do not necessarily involve the use of arms, though that's not ruled out".

Government attempts to hide problems

A decade later, many Serbs seem resigned to the loss of Kosovo, despite considering it the "cradle" of their homeland. In late February, while Serbs and Albanians were negotiating in Rambouillet, the nationalist parties tried to stir up emotions by calling for a demonstration in front of the federal parliament. It was hardly worth the effort: on a dull day, just a few dozen people responded, shouting out, but with no real conviction: "Slobo, ne daj Kosovo!" (Slobo, keep a hold on Kosovo). Passers-by barely raised an eyebrow.

Nationalism is no longer a trump card (1) but it may be fuelled by the war, particularly since Milosevic seems to be more than ever in control in Yugoslavia. He has plenty of leeway to govern the country as he sees fit. Vojin Dimitrijevic, director of the Belgrade Centre for Human Rights and a fierce opponent of the regime, is surprised at this: "Normally, people support a leader when he's moving from one victory to the next, but not in Serbia. There are no longer any Serbs in Croatia or Sarajevo (2). We're on the brink of losing Kosovo but Milosevic is still in power". Apathy is the word most frequently used by local analysts to describe the current mood of the population. According to Radomir Diklic, director of Beta, the country's only independent press agency, "our main concern is to get through this as individuals".

In the independent weekly Vreme (3), the former governor of the Yugoslav central bank (from 1993-96), Dragoslav Avramovic, recently painted a grim picture of the Serb economy. He estimates that 80% of Serb businesses are in deficit; average monthly pay has fallen to 152 DM (about $81), compared with 757 DM in Croatia and 1,040 DM in Slovenia; the central bank's currency reserves have fallen to $50 million and the social impact of the crisis is no less devastating. Official figures put the unemployment rate at 27% of the working population. According to Avramovic, the death rate among pensioners has doubled in recent years. Quoting the statistics of the Belgrade Red Cross, the former governor notes that 220,000 residents of Belgrade aged over 70 are currently living alone and destitute.

An economy already on its last legs has been dealt a final blow by the loss of its traditional markets, the lack of structural reforms and the sanctions imposed on Yugoslavia by the international community since 1992 (because of its support for the separatist Bosnian Serb leadership). But sociologist Milo Petrovic reckons that "by allowing Milosevic to portray the West as being solely responsible for the current disaster, the sanctions are having the kind of perverse effect that has already been observed elsewhere. The people, meantime, have learned to survive by resorting to the black market and trafficking in goods of all kinds".

Already on the brink of collapse, how long can the Yugoslav economy hold out? Dragoslav Avramovic thinks no longer than a few months. "As long as the West does not grant loans to Milosevic in exchange for an agreement on Kosovo" adds Beta boss Diklic who sees the economic crisis as the best hope of bringing down the regime. Once the Dayton accords were signed, international sanctions were partially lifted (4) and the Yugoslav authorities took the opportunity to sell the telecoms company Telekom Serbije to a Greek-Italian consortium, pocketing more than a billion dollars in the process. Avramovic points out that, so far, the authorities have managed to avoid selling the furniture: "They're preventing social unrest by ensuring that one way or another there is food in the shops." But despite all their efforts, last winter sugar and oil were in short supply in Serbian cities. And not a voice was heard in protest.

Most television news coverage focuses on the crisis in Kosovo - as previously with the conflicts in Croatia and Bosnia (1991-95) - allowing social and economic problems to be swept under the carpet. Who is going to risk calling a strike or criticising government economic policy just when Kosovo may be handed over to its Albanian majority and NATO is dropping its bombs? Dimitrijevic thinks that "only when the Kosovo issue has been resolved will people stop living a lie and return to reality".

The authorities have nonetheless taken the precaution of stifling those rare independent voices that dare to speak out in the local media. Last October, the Serb parliament adopted legislation that lays down severe penalties for "defeatism" and "scare-mongering". The daily Dnevni Telegraf had to close down after astronomical fines were imposed on it. But its proprietor, Slavko Curuvija, refused to be defeated: his paper is now printed in the neighbouring republic of Montenegro, with the backing of the local authorities (openly in conflict with Milosevic for several months now). Every night, the paper is secretly taken into Serbia (5) to be sold clandestinely in Belgrade. Other independent publications, whose circulation is in any case very limited, practice self-censorship to avoid meeting the same fate. The war means they are unlikely to get the new, more liberal, legislation the federal government recently promised, bowing to international pressure.

A tarnished opposition

How is Serbia to be rescued from economic collapse? The opposition might well have a few ideas, but television viewers won't get to hear of them. "Milosevic's grip on the audiovisual media, the main source of information for the people of Yugoslavia, allows him to sidestep all debate" complains Slobodan Brkic, a young economic adviser to Zoran Djindjic's Democratic Party (DS). But even if the opposition did have the opportunity to broadcast its message, there is no guarantee it would be heeded, such is its lack of public credibility these days, even in its Belgrade stronghold.

During the winter of 1996-97, the Zajedno (Together) coalition, made up of Vuc Draskovic's Serbian Renewal Movement (SPO), Vesna Pesic's Civic Alliance and Jinjic's DS, brought a great wave of hope to the country (6). Three months of daily demonstrations shook the authorities, who were forced, reluctantly, to acknowledge defeat in about 15 towns and cities, including Belgrade. "The Serbs displayed real people power at the time" recalls Milo Petrovic. "But there had to be a swift response to the unprecedented mobilisation to meet the profound aspirations of the people". Instead, internal rivalries between Jinjic and Draskovic caused the coalition to implode.

Two years on, Jinjic, who tactfully notes that Zajedno was set up on "difficult" bases, is clearly losing out in the polls. Draskovic meantime has opted to join the regime: last December he accepted the post of federal deputy prime minister, responsible for international relations. This was something of a shock to his electorate. Draskovic brushes aside any objection: "I didn't join the government to defend a system but to change it. I accepted this post to speed up the process of opening Yugoslavia up to Europe." Few in Belgrade find that convincing. From the time his political career first took off, Milosevic has shown himself to be a supreme tactician - a quality no-one would dare challenge in Serbia. "One of Milosevic's greatest assets", says sociologist Nebojsa Popov (7), opposed to him from the early days, "is his ability to select opponents weaker than himself".

As a result, although Yugoslavia appears weaker than ever, Milosevic has never been so secure. No-one seems able to stand up to him. The opposition is non-existent, though it is currently trying to regroup within an Alliance for Change (8). This does not look very convincing compared with the vast coalition Milosevic has managed to build around himself. In addition to the two pro-governmental parties - the Socialist Party of Serbia (SPS) and the Yugoslav Left (JUL) led by Milosevic's wife, Mirijana Markovic - are Vojislav Seselj's Serbian Radical Party (far right) and, more recently, Vuc Draskovic's SPO.

"Once Milosevic has finished pulling the strings of his puppet Seselj, he'll still be left with Draskovic to manipulate" says Radomir Diklic. The president is in any event in an ideal position to arbitrate in the conflicts that are bound to arise between such ill-matched "allies". That may make him appear to be the guarantor of the institutions, the man able to reassure a population looking for a steer. It remains to be seen whether Milosevic's vice-like tactical grip on the wheels of state (particularly the police and the army) will be enough to halt his inexorable decline in popularity. At the ballot box, despite what appears to be a tradition of electoral fraud, his party is slowly but surely losing ground. In 1990 the SPS captured 190 of the 250 seats in the assembly. In 1993 they won only 123. At the last elections in September 1997, the SPS in combination with the JUL did worse still, winning only 110 seats. Is Milosevic feeling vulnerable? The recent wave of purges would seem to point that way.

One after another last autumn, the chief-of staff of the federal army, General Momcilo Perisic, and Airforce and Air Defence (DCA) commander, General Ljubisa Velickovic, were sacked. According to a source close to the army, the pair made the mistake of disapproving of the agreement with NATO signed in October 1998 authorising NATO aircraft to fly over Kosovo and deactivating the DCA systems (9). But other analysts believe General Perisic was sacked because of the relationship of "trust" he had built up with NATO Supreme Commander, US General Wesley Clarke, following a series of bilateral discussions in Kosovo.

A further key figure has fallen by the wayside, as Milosevic tightens his grip on power: the president has sacked one of his most faithful lieutenants, the head of the secret service, Jovica Stanisic. He is alleged to have been opposed to the use of force to halt the demonstrations for democracy of the winter of 1996-97 in Belgrade and to destabilise the young reformist president of neighbouring Montenegro, Milo Jukanovic. Above all, he refused to condone the strategy used in Kosovo. In the view of Nebojsa Popov, "Milosevic is playing a typically Stalinist game. He is constantly changing the key players in the regime to ensure they're loyal to him: newly promoted officials owe him their gratitude and are all the more devoted for it".

In the corridors of power, the siege mentality is increasing apparent. Closeted in his residence at Dedinje (where Marshal Tito once resided) Milosevic now appears only rarely in public. He reigns like a king entrenched in his palace. His television appearances can be counted on the fingers of one hand. It is as if, by denouncing the plot hatched by "traitors" to the Serb nation, supported by "external enemies", the government has been caught out at its own game.

Embezzlement and vote-catching

Little information filters through as to the mood among officials of the regime. Take the Federal army, for instance. "It mirrors Serb society" is all that Miroslav Hadzic, an independent military expert will say. For which read, it is apathetic and in total disarray. Wages are apparently paid late, troops are bitter in their criticism of the regime for giving preferential treatment to the better equipped and better paid special police forces that provide the spearhead of the repression in Kosovo. Vuk Obradovic, a former general who resigned in 1992, tells how badly the army suffered from the break-up of Yugoslavia. Army units had to leave Slovenia, Croatia, Macedonia and Bosnia in haste. Many soldiers were re-housed in poor quality temporary barracks within the territory of a rump Yugoslavia. "The army is certainly discontented", says Konstantin Obradovic, an expert in international law, "but Milosevic need have no fear, there is no Napoleon waiting in the wings".

Last October, Milosevic also tightened his grip on his own party, the SPS. One of the movement's deputy presidents, considered a moderate, Milorad Vucelic, was also sidelined. "There are now many senior government officials who grumble in private and curse the isolation into which the country has sunk because of the policy adopted by Milosevic" comments a Western diplomat. "But though they may want the president to change tack politically, they do not want to change president".

Be that as it may, the Yugoslav president has set in place a formidable system for securing support that many observers consider an effective shield. According to Radomir Diklic, "Milosevic is interested in power for its own sake. But he allows his principal collaborators to get rich shamelessly and compromise themselves". In Serbia, the demarcation lines between economic and political circles tend to become blurred to the point of farce. For example, the Serb prime minister, Mirko Marjanovic (SPS), is also the chairman and managing director of the energy company Progres. The deputy prime minister, Dragan Tomic, runs Simpo, a company that specialises in the agri-food industry and furniture manufacture. His namesake, Dragan Tomic (SPS), the president of the parliament, is also the director of Yugopetrol. The minister without portfolio, Bogoljub Karic, along with his brother, heads a financial empire that includes banks, a television channel (BK), civil engineering companies and even a university. And the bulk of the country's main entrepreneurs are members of the JUL, the party of Milosevic's wife. "The president is said to keep very detailed files on the embezzlement some of them have got up to in recent years" comments sociologist Dusan Janic.

A legacy of the Tito era and rampant as a result of the years of economic embargo, corruption pervades the whole of Serb society but benefits only a tiny minority among the presidential elite. It erodes people's confidence in the institutions and in politics generally. According to a Western observer, even the opposition is caught up in it. In those communes wrested from the government by Jinjic's DS and Draskovic's SPO in 1997, representatives of the new local council called on people who had built their homes without the proper permission. In exchange for a sum of money and for joining the party, they agreed to forget all about it. "To try to keep hold on some kind of normality and out of an instinct for survival, people are increasingly turning away from the state": or so Slobodan Vitanovic, a retired teacher of French, believes.

University unrest

Disgust for politics is particularly apparent among students. Since the academic year began, they have mobilised but only in defence of their own rights. Last spring, the government, which was determined to neutralise one of the spearheads of the 1996-97 demonstrations, got parliament to pass a new law that soon sparked a crisis. Under the University Act, the government is able directly to appoint university rectors and deans who are now assisted by management committees made up exclusively of representatives of political parties close to the government. In addition, lecturers are required to swear allegiance to the regime by signing a new contract of employment. Most did so for fear of losing their jobs (and their meagre monthly salaries of $160), but about a hundred rebelled and were then sacked.

At the beginning of the 1998 academic year, a new dean, Radmilo Marojevic, appointed by government decree and a member of the extreme right SRS, took over at the faculty of language and literature. "I regret to say that our country and our culture are, in a manner of speaking, being occupied from within", he told the independent radio station B92, more or less accusing students of being the stooges of the "enemy" secret services (10). Shortly afterwards Marojevic decided to ban the study of Croatian literature in his faculty. To counter Western influences, Russian and Polish studies were given precedence over French and English. Finally half the Italian lecturers who refused to sign the contract were fired on the spot.

In late November 1998 a student committee called for a general strike that was partially observed, until three demands were met: Marojevic had to resign, the university's former regulations were to be restored and the sacked lecturers reinstated. In late February, after a power struggle lasting several weeks, Marojevic suddenly asked to be transferred to Moscow. A few days later, the government announced that his successor was to be a lecturer from the JUL. War-weary, many of the students returned to their classes.

Did it ever occur to them to continue the struggle against the regime outside the university? According to Tiana Jovanovic, one of the movement's leaders, "students do not feel sympathetic to any political party. We have no confidence in them and we want to sort out our own problems for ourselves". That comes as no surprise to Nada Petrovic, chair of the newly created independent union of teachers in the faculty of languages and literature. "People are afraid and they're not ready to take positive action. The poorer you are, the harder it is to be courageous".

Kosovo seems a million miles away from the smoke-filled corridors of the literature faculty or the pavements of Revolution Boulevard. Tiana Jovanovic will only concede that the students want a negotiated solution. Disgusted with politics, their demands in tatters and battling daily for survival: no wonder Milosevic has managed to wipe out all forms of challenge - for the time being at least. He also benefits from the respect for authority inculcated in the Serb people by five centuries of Ottoman domination, close on half a century of Titoism and 10 years of national communism, as Konstantin Obradovic points out.

Close to Mrs Pesic (Civic Alliance), he is nevertheless struggling to restore to battle-worthiness what is left of the democratic opposition. Cagey about his chances of success, he prefers to make a joke of it: "In the 1930s, when parliamentary government was a new idea in Yugoslavia, a leader of an opposition party complained about his party's poor showing in the local elections. Suddenly, in a café, he spotted a like-minded friend. Well you at least must have voted for us, he said. No I didn't, said his friend. Why ever not? I'll vote for you once you get into power".

*Journalist, former correspondent in Zagreb and later Sarajevo.
 
 

Translated by Julie Stoker

  1. See Jean-Arnault Déréns, "Rude awakening for the orphans of "Greater Serbia", Le Monde diplomatique English edition, November 1997.
  2. In August 1995, nearly 200,000 Serbs left the (separatist) "Republic of Serbian Krajina" in the face of the offensive mounted by the troops of Croat president Franjo Tudjman, without fighting and without any support from Belgrade. After the Dayton peace accords, most Serbs living in Sarajevo or its suburbs left the Bosnian capital reunified under the government of Alija Izetbegovic.
  3. Special report in Vreme, 20 February 1998.
  4. After the Dayton accords had been signed, Milosevic was able to get the economic sanctions imposed on the Yugoslav Federal Republic lifted. In October 1996, once his relations with Sarajevo, Zagreb and Skopje had been normalised, Belgrade was able to get sanctions lifted in full. But they were partially re-imposed in spring 1998 because of the intervention of Yugoslav armed forces in Kosovo.
  5. According to Slavko Curuvija, the circulation of Dnevni Telegraf was 80,000 before it was banned. That has fallen to 15,000. Its proprietor has asked for international assistance to secure the future of a newspaper that is likely to have to shut down before long. Curuvija also published the independent magazine Evropljanin (The European) which is also banned and is being printed in Croatia.
  6. See Catherine Samary, "Epreuve de force en Serbie", Le Monde diplomatique, January 1997.
  7. Author of the remarkable Radiographie d'un nationalisme. Les racines serbes du conflit yougoslave, Editions de l'Atelier, Paris 1998.
  8. The Alliance for Change comprises Zoran Jinjic's Democratic Party (DS), Vesna Pesic's Civic Alliance, Vuk Obradovic's Social-Democratic Union, a dissident wing of Vuk Draskovic's SPO, and two independent figures: Dragoslav Avramovic (former governor of the central bank from 1993 to 1996, who managed to stabilise the hyper-inflation) and Milan Panic (former prime minister in 1992 and unsuccessful candidate in the 1992 presidential elections against Milosevic).
  9. See the AFP dispatch of 25 November 1998, Le Monde, 1 December 1998, and La Croix, 24 December 1998.
  10. Washington Post, 26 December 1998.

ALL RIGHTS RESERVED © 1999 Le Monde diplomatique

Document compiled by Dr S D Stein
Last update 18/04/99
Stuart.Stein@uwe.ac.uk
©S D Stein
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