TOP INTERVIEWS Interview with H.E. Mr. Milo Djukanovic, President of the Republic of Montenegro Podgorica, July 20th, 2001 What correlation would you establish between political stability and foreign investment? Political stability is crucial for the arrival of foreign investors to a country and region. As someone who personifies the state policy with the function I perform, I ensure that this policy is a policy of stability in order to ensure that foreign investors will have guarantees for the capital they invest in this country. Having in mind the problems that took place in the Balkan region during this past decade, stability has an additional importance for Montenegro. In fact, we have demonstrated this commitment through our success as the only state of the former Yugoslavia that has not had a war in the past decade. Montenegro is a state that has preserved a multiethnic stability, at a time when ethnic wars were waging across our borders. We also provided shelters for over 100,000 refugees of different ethnicity and religions. Moreover, Montenegro has started to implement economic and democratic reforms, which will ensure the transition and development of our society. What is your vision for the modernisation of Montenegro's economy? Before taking this office 3 ½ years ago, I was Prime Minister for 7 years, which means I was very devoted to the issues of privatisation and economic reform. And I must say it is a great pleasure to follow how Mr. Vujanovic and his cabinet are addressing these issues. It was already in early 1990s that we promoted privatisation and economic reforms as strategic characteristics of our economy and overall state policy. If Montenegro had not lived in such an unfavourable and difficult environment, today's achievements of this process would probably be much greater. However, what we have achieved is worth of attention, and the process of privatisation is continuing. It is very important, given the region we live in, to note that privatisation in Montenegro has been spared of any scandals, since we have relied on expertise of European and US experts, and we have respected all phases of the process and principles of transparency. In this year we also are entering the process of voucher privatisation. Along with that we have launched privatisation processes of large companies such as the national Telecom Company, the Tobacco Company "Dukvanski Kombinat Podgorica" and Jugopetrol through international tenders. Therefore, by the end of this year, we will have already privatised over 50% of public capital. In terms of economic reforms, we are successfully accomplishing this through monetary reform, budget reform, and a new foreign trade regime. This year we will accelerate tax and banking system reforms, as well as the reforms of public administration and education. I have discussed our plans with superiors of USAID in Washington, and therefore I also expect continuation of expert and financial assistance in the future. We have an expression in English, which says: "Size matters". Does the fact that Montenegro is small and flexible, give it an edge on neighbouring countries when referring to modernization and economic reform? Size of the country is our potential advantage. Our ability to mobilise a critical mass of energy to implement reforms will decide whether we will use the advantage we have. I find it irrelevant to debate whether Montenegro can survive economically as a small state. I know many small states, even smaller than Montenegro, which are economically vital and have high standards, like Luxembourg, for example. Montenegro has economic potential not only to survive but also to live in wealth. It depends on us whether we will achieve this. The condition is to build a new market system, with efficient institutions, and to unconditionally build the concept of an open economy. Looking now the major political issue, Mr. Vujanovic has now asked for new negotiations with Mr. Djindjic on the subject of the Federal Constitution. Would you say that the current situation with President Kostunica in Federal Parliament actually encourages democratic changes? And are you still committed to referendum in March 2002? The main goal is that Serbia and Montenegro, and even the whole region, start to think in a new way - it is necessary to democratise this area and integrate it in European and transatlantic structures. This is a guarantee that the Balkans are out of the war, and that everybody in the Balkans will try to find the way to ensure that this region become an integral part of Europe. The Balkan region is only a geographical part of Europe, yet we have to improve economic, political and security standards in order to become an essential part of the European Community as well. Former Yugoslavia was in the past decade a serious generator of the last Balkan crisis, which began and lasted in a typical Balkan way. This was due to undeveloped democratic institutions, and a lack of practice in solving crises and problems of development. This is the reason for which these crises produced a great deal of violence, victims, and destruction with long-term consequences. I think that this crisis must finally end with the dissolution of former Yugoslavia, according to the prescription of the Badinter commission of 1991, which states that each of the former Yugoslavia republics has the right to achieve, within existing borders, a legal status according to international law. Four of those republics have used this right, yet Serbia and Montenegro have not. In my opinion, Serbia and Montenegro should take that step forward, because our 9 year-old experience as a two-member federation has proceeded to be unproductive. This is mainly due to the serious structural defect of our federation. That defect lies in the fact that Serbia is 18 times larger than Montenegro, and that it has insufficient sensitivity towards our needs and problems. Our suggestion is to resolve the crisis in a European and peaceful manner - to accomplish an agreement between Serbia and Montenegro, to take care of our own homes, and to find, in accordance to general and regional policy, a place for our homes under the European sun. The solution to the problem between Serbia and Montenegro is different to the solutions previously used in ex-Yugoslavia, since we do not have any controversial border issues. Montenegro does not claim even a footstep of Serbia, and I believe that this is the case with Serbia as well. So we have good references to solve this problem in civilised, democratic and non-violent manner. As President of Montenegro, what is the legacy that you would like to leave to your son? It is an advantage for everyone if they can control their future, and it is the same for nations. I wish that people of Montenegro could control their future too. I advocate for Montenegro independence because I want my son's generation to determine their European future. If we determine our future by ourselves, I believe it will be better than if someone else controls our destiny, even if that someone were to be someone from close to us, in fraternal Belgrade. Looking back to 1997, when you replaced Mr. Bulatovic, would you say this was a turning point in the country's history? Yes, I believe this was extremely important crossroad for Montenegro. At that moment, Montenegro was choosing one of two possible directions. One direction led back to a false history and mythomania, and led to a blind following of Milosevic's policy, which is something that Mr. Bulatovic persistently stood for. The other direction led towards something unknown for us - toward reforms, democracy and integration into European society. The Balkan region is xenophobic, afraid of new and unknown things. At that time it was not certain that with our policy we would win a majority, but we did win by a narrow majority. In the meantime, our majority has grown, and I believe that our last parliament elections a few months ago have demonstrated that Montenegro is stable today, on the road to reforms and integration into European and transatlantic structures. We still differ on the issue of independence in Montenegro, but what is important is that, although a small minority of Montenegrins still oppose this type of solution, even they speak of the need for co-operation with the international community and integration into Europe. I do not know to what extent they understand what they are saying, and to which degree they are sincere, but I believe that it is of great importance that they are now speaking in these terms, and that they can no longer go back. This means that both the majority and minority see Montenegro united to Europe. What would be your final message to the readers of FORBES GLOBAL Magazine? Montenegro is a beautiful tourist destination in the Balkans. It is a country that has preserved stability in the most difficult period in the Balkans, and a country that is stable today and onwards. Montenegro sees its multiethnic and multicultural structure as a chance and asset. We are enacting new laws, creating a new market system, and we are looking forward to seeing foreign partners who can help develop our country. Their capital will be safe in our country.