MACEDONIA'S ECONOMY [Main Title]

A look at how Macedonia is trying to combat a booming black market economy and maintain its businesses and industries in the face of the international embargo against Serbia and the Greek embargo on Macedonia itself.

Shot of two men with their backs to the camera who explain that there are no jobs in Macedonia and they have to make a living in some way. Shot of the men's midriffs. They explain that they take petrol to Serbia that makes them about 10-15 DM a day. In Skopje the petrol sells for 1.30-1.35 DM per litre whilst in Serbia it sells for 1.70 DM. Shots of the men loading the boot of a car with petrol cans. Shots of busy streets and roadside stalls. Children sell cans of drink and cigarettes. The black market has thrived in Macedonia since Serbia closed their northern border to trade and Greece closed the southern border. These trade embargos have resulted in an economic crisis for Macedonia. Interview with Ilijaz Sabriju, Minister for Labour and Social Affairs. He explains that the situation for many people is critical because they are unable to find a job, some have lost their businesses and most of the population receive their salaries irregularly. Given these factors, he said that it is unsurprising that the country is facing growing social problems. Shots of a man leafing through a roll of money and an old man drinking from a Coca Cola bottle. Only a few people become rich trading on the black market. Interview with four Macedonian and Albanian men who are unemployed following the closure of the factory where they had worked for over thirty years. One man says that the cost of living is 100 DM, without it, all you can do is just pray. Another man says that 'the day we can't afford bread any more we may as well hang ourselves'. Shots of vehicles queuing at an international checkpoint, waiting for officials to search their cars. The men who worked at the Trescka Furniture factory say that the embargo was not the main reason for the factory's closure. One man argues that an embargo only prevents business for those without friends and connections in high places. Another man says that it is easy to cross the border because UNPROFOR do not check vehicles thoroughly. As long as you have the right documents, they let you through. He also explains that for 20 DM each, Serbian custom officials can be persuaded to let Macedonians across the border. Interview with Henrik Sokalski, UNPREDEP Representative. He says that several hundred big trucks have crossed the northern border. They are aware of the 'grey area' within the economy. The government is taking steps and UNPREDEP cannot do much because there are convincing arguments that the country is being suffocated by these embargos. The embargos may not be wholly effective but they are still affecting trade in the legitimate market and driving up transport costs. Shots showing a factory and long queues of lorries. A tractor pulls a cart of hay bales along the road. A farmer works in a field. Agriculture is Macedonia's largest economic export but farmers here are currently unable to export their goods to Western Europe because they are unable to travel through Croatia. Interview with Ivan Angelov, Minister of Agriculture, who says that they have now organised three corridors that can be used. One new route goes through Albania and is working well despite problems protecting the convoys as they travel to the port of Drač but, he says, the USA is now taking care of that. He explains that from Drač, the goods can then be transported to Italy, Croatia, Slovenia, Austria and elsewhere. Angelov explains that the second corridor goes through Bulgaria and Romania and the third one runs through 'Yugoslavia, Serbia'. Shots of long queues of lorries. Transport costs have soared. It used to take sixteen hours for goods to travel from Skopje to Germany; it now takes eight days. Shots of workers in a fruit-canning factory. Interview with Jovan Jovanov, Managing Director of ZIK Strumica , who says that as a result of the embargo the company is unable to export tomatoes as fresh vegetables and instead are forced to can them. This means they lose more than seventy percent of their profits. Shots of a man tipping tomatoes away, a woman picking tomatoes off the conveyor belt, tins being filled with pulverised tomatoes by women on the production line. Shots of a woman working in a field collecting potatoes and several people collecting peppers. Small scale family farms that used to export their vegetables have also been knocked by the embargos. They have lost arrangements they used to have with international buyers. A farmer, sitting on a cart full of green peppers explains the problems. He says that the basic problem is getting hold of tools and production materials but also that the market for their vegetables in Macedonia is too small so that they are not even covering production costs. For Albanian farmers around Tetovo, the problems are even greater. They have found it difficult to arrange deals with the major Macedonian distribution companies. One farmer says that there is nobody to take their sugar beet. Either they do not pay very much or they do not take it at all. It is the same with tobacco and peppers. The market is saturated with these goods. Shots of street scenes in Macedonia. The embargoes are crippling the Macedonian economy and people's incomes have fallen dramatically. Yet, for four years Macedonia has kept its independence without war, kept inflation low and continued with privatisation.

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