Macedonia: New government takes office

[gjore]

Friday, 25 August 2006

PM Designate, Nikola Gruevski, and the coalition partners in the new Government on Thursday signed an Economic Manifest, by which they committed themselves that economy will be top priority in their work.

With their signatures on the Economic Manifest, coalition partners promised to pull off Macedonia from the poor economic situation in the next 4 years.

"It will be hard, but we are prepared to persist and determined to make decisive and large steps, we will overcome the challenges lying ahead. We believe that slowly, but steadily, the results will come", said Nikola Gruevski after the signing.

Better standard of living, better inter-ethnic relations and faster integration into the EU and NATO are some of the priorities listed in the programme of the new Government which will be discussed by the Parliament on Friday.

For improving the standard of living, the Government programme offers tax and interest rates' cuts, favorable housing loans, administration reforms.

The new Government, in its programme, also announces combat against corruption, development of democracy, equal condition for business for all entities.

Regarding education, the future Government plans increase of budget funds up to the level of 5 per cent of GDP, which is EU average, as well as opening new state university in Stip. In the part of telecommunications, a new tender for third mobile operator is envisaged in two months' time.

The Government also plans to get involved in reforms in the Health sector, its modernization and establishing of private-owned hospitals.

The Government programme was signed on Thursday by all leaders from the coalition that will participate in the Government.

Monday, 28 August 2006

The new Macedonian Prime Minister Nikola Gruevski has officially moved in the Prime Minister's Cabinet.

Duty transfer between the outgoing PM Vlado Buckovski and the new PM Nikola Gruevski took place Sunday afternoon.
Duty transfer ceremonies took place Sunday at the Ministry of Interior. Ministry of Foreign Affairs, Ministry of Finance and Ministry of Justice.

[tsunami]

Thats Good News.


The Balkan's must be modernised and enhance higher profit margins, not just labour. Labour in the Balkans is endless anyway.

But not a lot of production and export.

The Balkan people in general prefer the public sector and are fearful in the creative part of business.

Creative in the competitive advantage domain.

[gjore]

well, i'm not an economist and don't understand these things, so i'll take your word for it.
But i'll tell you why i think this government is good news.
For the first time since independence i have hope that things might change in Macedonia. The ministers in this government are very young (the average age is 36) and highly educated and what is most important full with enthusiasm. Also, Gruevski is not like the former leader of VMRO-DPMNE Ljubco Georgievski - an instable person and a fervent nationalist who was ousted from the party after a power struggle and is now the leader of VMRO-narodna. What is even more important with his departure he took all the nationalist elements with him so VMRO-DPMNE is now clear of such scum.
So, even though of the apparent lack of experience(because they are so young) and the problem with DUI, this new government seems that it's capable to carry Macedonia on the right path. Lets hope is does.

[tsunami]

I agree that their age is good news.

However we must learn that governements are not able to make a lot of change, especiall here where the Lobbies are weak.

That is why individual efforts are the best.

Ok, let me explain my theory.


Let's say that your current youth (16-35+) male and female are about 100.000 roughly.

If 10% of them starts doing international business there is a 98% chance that the 10% of them, meaning the remaining 1% is succesfull. This 1% of the total population will feed all the rest(other ages included).

In other words the Balkan people must dare and use other tools as well with Marketing being on the top priority list.

Marketing is the Advertisement of all sort, the attraction of customers. Create products, markets.

Got an idea, put it in paper and make it work.

The Italian's and their best-selling auto the Fiat Punto have proved that anyone can do business and be succesful.

As you actually buy a very high-priced car, that is unreliable, creates problems. The competition in price-quality is devastating.

However the Punto is the winner.

Marketing is Miracle.

[gjore]

yes, you are right, but what about those people that won't make it. they will lose all their love savings (if they had any in the firstplace). Don't forget, this is one of Europe's poorest countries. Most people don't have neither the money nor the courage to start a bussiness. Furthermore, the oligarhs are responsible for the lack of investment. If it wasn't for them there should have been an audi and a siemens factory in macedonia long time ago, and these are only the bigger investment plans that didn't work. The oligarhs have certain control of the courts and if they sense competition from any investers (domestic or foreign) they put so many obstacles before them that they feel they are better off to invest in some other country.

[tsunami]

i Know what you exactly what you mean but trust me, i have been doing some things lately that i havent actually made any money but i havent lost any either.


Start easy and slow, cretae a base and build up.


Use the money of the side, dont expect them to grow, plant them and cater for them and they will grow.

Last year with 2000 Euros on the side i made a surf-shop and i signed another 5000 of cheques.

Not big amounts, easy to handle amounts. Amounts that are quickly acquired. For example a months salary in the UK is about 3000 euros, so even if all goes shit ill just have to work 2 months(plus over-time) to pay them off.

So this year i made a very small profit which was used to acquire another contract for another market.

Also, the rest of the money will be used for my first month's rent in england, after wards ill have to become a waiter or something to support myself.

The Global Market is easy, especially the European.

In the Balkans especially in your region, labour is very cheap and you can use it in your own benefit. 100 kilometres away labor is expensive and the standards of living higher, therefore you can claim a higher selling price.

So produce internally and trade externally.

Also, it can be a hub of cheap products. Agriculture can be usefull. do you know that a litre of olive-oil can be sold for 15 euro's in Germany,UK, France and Japan...The cost of production of olive-oil in Greece cannot overcome 1 euro a litre and in your area cannot overcome the 20 cents. These are quite large profit-margins.

Wine:


"The wine sector needs investment if it is to remain competitive and reach its full potential. Currently, Macedonia exports its wine in bulk to be bottled in other countries and then sold. Export opportunities exist for U.S. companies for equipment to increase the volume of bottled wine, as well as for technology and supplies to stimulate grape production."


from: http://www.ita.doc.gov/exportamerica/NewsFromCommerce/nfc_CEEBICnews.html


The one who eventually sells it to the customer or the supermarket is the one with the highest profit. Produce it, refine it, bottle it and sell it yourself. The bottler's are the ones who label them and claim them as their own. Do not just plant and gather. Extinguish the traders, be a producer and a trader. Get all the money yourself.

Find a guy, give him a good price and he'll take it.


The oligarchs, trust me now on this, are so slow to react especially on little business, that usually they dont even see you coming. Tip: do not talk about it. Not even to *****es.

[gjore]

yeah, i've been thinking about these kinds of things. But there is one major problem in all these business plans. The thing is, the Macedonian market is really small and the EU markets are open for Greece, but are mostly closed for Macedonia. We can only export limited quotas of produce and some we can't export altogether. But things are going for the better. Just a couple of days ago, Macedonia signed the CEFTA trade agreement with Bulgaria, Romania and Croatia. So this will help exports a lot but it will also increase competition.

You would be amazed what is happening these last years. Agricutural produce is rotting in the fields or the farmers are destroying it with their tractors because noone wants to buy it or they offer a price that is below the price needed for production. In the last four years there was absolutely no stimulus for the farmers, no subventions, nothing.
About the olive oil.That is possible only in gevgelija but it's not a bad idea because macedonian olives are three times cheaper than greek, but they only appeared on the market this year. Macedonian 1 euro, Greek 3 to 4 euros and olive oil is 5 or 6 euros, but i think half a kilo, i'm not sure though i never buy it, it's too expensive. ordinary cooking oil is less then a euro.
About wine production. What you mentioned was true just a couple of years ago. Now there is very good wine produced and bottled in Macedonia for export in the EU. Our finest vineries are Tikves, Fonko, Bovin and Skovin and the last three export almost everything they produce. Anyway, a wine business is too expensive to start but very lucrative considering how they rip of the farmers. Believe it or not they are giving them 8 denars per kilo of grapes. That's 7 kilos for one Euro. Amazing, ha?
Watermellons reach 3 denars for a kilo.that's 20 kilos for a euro and in Strumitsa region which is the main producer this summer they reached 1 denar and the farmers started destroying them rather than give them for this price. This is because we can't export them.
So, the real problem is export. We have very good agricultural products and very low labour prices, so with increase in export, everybody will start making money.

[Kula]

So, the real problem is export. We have very good agricultural products and very low labour prices, so with increase in export, everybody will start making money.

That's why you won't export in the EU, they'll never leave their own production to be replaced by cheap products coming from outside the EU, besides I think the EU has some protective taxes especially against these kinds of products.

About the ministers being young, in the last government we had some well educated young sons of *****es coming from the London city and these assholes made such criminal deals with the Bulgaria's debt and border control that they and the people around them have probably made a billion dollars or more. I hope that doesn't happen in FYROM though, but most politicians in power view their mandate as a get rich fast scheme.

[gjore]

yes, this was also true here in the past. but for these guys even though they are young, this is not their first time in politics. For example, Gruevski was minister of finance in the period of 1998-2002 and as far as we know he was honest. No skandals were attributed to him, so even if he took something it was nothing compared to the other polititians. Aso the member of the other two smaller macedonian parties NSPD and DOM which respectivly have 6 and 1 places in the government were part of the SDSM only 8 months ago and they resignated and made their own parties because they didn't agree with it's policies. Their leaders are also known for being in politics for a long time without any scandal being attributed to them. Anyway, VMRO entered it's election campaign with a 100 steps programe and yesterday, eventhough it was his first day in office, Gruevski demanded for parliament one of those steps which was to lower taxes for agricultural equipment from 18% to 5%.SDSM on the other hand, didn't have a programe. I don't know what they thought.

Look, the bottom line is, maybe these guys will rip the people off even more then the previous ones. Time will only tell. But man, the people are angry, the people are so angry i can't even start to tell you. They better do something right because four more years of this...no thank you.

[tsunami]

yeah, i've been thinking about these kinds of things. But there is one major problem in all these business plans. The thing is, the Macedonian market is really small and the EU markets are open for Greece, but are mostly closed for Macedonia. We can only export limited quotas of produce and some we can't export altogether. But things are going for the better. Just a couple of days ago, Macedonia signed the CEFTA trade agreement with Bulgaria, Romania and Croatia. So this will help exports a lot but it will also increase competition.

You would be amazed what is happening these last years. Agricutural produce is rotting in the fields or the farmers are destroying it with their tractors because noone wants to buy it or they offer a price that is below the price needed for production. In the last four years there was absolutely no stimulus for the farmers, no subventions, nothing.

The thing is that you are able to bypass these quotas, and yes there are some protectionist policies even between EU members. All is bypassable though.

Also, the world Market is not just the EU, there are other customers elsewhere as well.

What am trying to tell you is one thing you already know:

Do not expect anything from your politicians.

There are rotten and even if they are not, they are incapable of doing change.

The Balkans are not North Korea, where absolute regimes can easily take control. Balkan people are too over-sensitive.

Individual effort in trade is the only route to progress. Progress yourself and your friends will follow your example, then your employess will be satisfied and content.

From one individual a lot of mouths can be fed.

From sitting back and blaming the government or other governments will lead us nowhere. This is just misery and stupidity.

We need to put aside all these historical and political crap and start planting seeds for our own individual future. That being Our and our surroundings future; meaning cousins, friends, partners. Use the law(and its inefficiencies) for our favour,do not blame the law.

Use the "stupid" government, don't blame it.

Through a forum is hard to express all this theory.

One major problem that i have personally identified in all Balkan countries(greece incl.) is that the people are very scared to step and grab life by the balls. All this instability has created over-sensitive characters with minimum amounts of courage.


Governements are just there to exist. Individuals are what make society work.

What would Athens be without Plato, Aristotle, Aristophanes?

Pericles was fine but which work of Periclis the politician still imposes a significant amount of influence. Very little and in very specific sectors. while the simple citizens(plato and the others) influence more than their respected politician(Pericles).

Anyway, am not sure if that was a good example but i hope that you will get the picture.