Posted on 06/07/2002 10:42:37 PM PDT by Chal
Croatia's uphill struggle to shine
By Shihoko Goto
UPI Senior Business Correspondent
From the Business & Economics Desk
Published 6/5/2002 5:14 PM
WASHINGTON, June 5 (UPI) -- It's not easy getting foreigners excited about a country that's rarely in the international limelight, Croatia's prime minister said Wednesday.
"We are a small country without much role in the ongoing events of the world" Ivica Racan told business executives and policymakers at the U.S. Chamber of Commerce to kick off the first of three days in the U.S. capital.
Indeed, unlike some western European countries, Croatia is not known for being a breeding ground of terrorist sleeper cells. Nor does the country have nuclear capabilities, unlike India and Pakistan, and the country is neither facing economic chaos nor a major boom.
Yet, Racan warned the 30-strong group largely of U.S.-based Croatian businessmen and researchers that they should not take the country's slumbering state from the global arena for granted.
"Small countries too could be noticed if they start getting into some kind of trouble," Racan said, pointing out that Croatia's political and economic stability was vital not only for Eastern Europe, but for the world at large.
That may well be true, given the contagion effect of slumps in emerging markets, such as Thailand's financial meltdown triggering a worldwide economic crisis in the late 1990s.
Yet, it is also true that the world appears to have grown wiser since, since for instance the financial collapse of Argentina had only a limited impact on the overall Latin American economy. So the argument about warning against a potential domino effect on the world may have fallen flat.
Certainly, the country's standing in Eastern Europe is weak. While Croatia, like most other nations in the region, is hoping to join both the European Union and NATO, prospects for either happening any time soon look slim. Croatia is having a particularly difficult time meeting the monetary and fiscal requirements set by the EU, and it did not make the shortlist for the next batch of countries such as Poland, which are hoping to join within a few years' time. Prospects for joining the North Atlantic Treaty Organization look slightly better, if only because of the country's strategic location across the Adriatic Sea, facing Italy.
As for the Croatian prime minister's endeavors to muster more U.S. investment interest in the country than neighbors Slovenia, Hungary, and Bosnia-Herzegovina may have been equally difficult to swallow.
Clad in a light gray suit with a gray tie, with hair color to match, Racan said that Croatia was particularly interested in building up its shipbuilding, food production, timer, and tourist industries.
"We are not going to be talking about attracting (foreign) investments by offering low labor costs, and lots of cheap workers," the prime minister said. "We want qualitative investments."
There is, however, stiff competition for such investment funds, with most of former Communist Europe hoping to expand in a similar manner, particularly as they cannot match the low labor costs of Asia, Africa, and Latin America, while not being able to be at the forefront of technology-driven economic growth. High taxes and social costs, that have also significantly increased under Racan's government, are a further deterrent.
With the unemployment rate close to 24 percent, and the rate of economic expansion shrinking, it may be wise for Croatia to come up with a plan B to ensure foreign investment and a place in the sun.
Still, the country is hoping at least to secure more funding from the international community, and Racan said that he expected meetings with top officials of the International Monetary Fund and the World Bank to be positive.
"We already have one agreement with the IMF, and we expect to get another one soon," he said.
The IMF provided a stand-by agreement in May 2001 to the tune of $225 million.
Copyright © 2002 United Press International
Her husband plans to start a charter boat and fishing company in the USA.
Anyway, My Uncle had no use for politics( ah, there is ALWAYS at least one like that in ANY family) and he died YEARS ago during the last of the IKE years.
My friend doesn't like klintoon AT ALL( she says," I HATE THAT MAN!!"), and Bush, well, she says... he is not too interesting...the BEST THING is that he is NOT gore or klintoon.
I like her very much...she is the best cook I know...and a most gracious hostess!!
VRN
Now 12 years later, the people of Croatia have a 40% lower standard of living, have some $11 Billion of foreign debt, and it is only getting worse.
VRN
I lived for a few years in Milwaukee, long before that store in Milwaukee opened, while my husband was finishing his Masters.
There are so many wonderful ethnic restaurants there...German( Ah, Madier's was the best), Serbian ( Old Town and Three Brother's) and a place that had great Polish food....I just cannot remember the name for the life of me.
Anyway, it was just super!!
My husband has a Slovenian friend ( 2nd generation) who went to school with him in NYC and he lived there as well. We had some great times there with all the ethnic restaurants....and the neighborhoods!!
There is a place called Serb Hall there but I did not know any Serbs there at all, save a couple of the waiters at Old Town restaurant...but that was just a passing acquaintance.
I am very fond of ethnic foods and I really miss ALL the fabulous desserts...like tortes!!
VRN
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