Poverty in FRY Today

(Held in Belgrade, April 12^th 2001, 10 AM, premisses of the "European Movement in Serbia", Djure Jaksica 5)

Workshop Poverty in FRY today, organized by Economic Forum and Policy Forum of European Movement in Serbia was held on April 12^th, 2001. Following program was agreed:

1. Danijel Pantic, Secretary General, European Movement in Serbia "Introductory remarks"
2. Francois Friedrich, Deputy to Special Representative of Secretary General of the Council of Europe in Belgrade: "Poverty and Human Rights-European social chart"
3. Goran Cetinic, President of Economic Forum, European Movement in Serbia: "Economic Aspects of Poverty"
4. Prof. Dr. Srdjan Bogosavljevic, CEO Strategic Marketing and Media Research Institute, Belgrade: "Indicators of Poverty in FRY"
5. Philip O'Keefe, World Bank: "Poverty in the 1990s in SEE and CEE: Regional dynamics and implications for FRY."
6. Discussion

In his introductory remarks Danijel Pantic said that FRY today is lacking the clear direction of macroeconomic policy and that new DOS government is endangered to loose confidence. Therefore it is the task of civil sector to help in creating social consensus to overcome transition recession easier.

Mr. Francois Friedrich talked on European Social Chart as a basis for civil rights in Europe. Up to now 20 countries signed the chart. Main aim of chart is to enable realization of following principles: right to work for everybody, right to have impartial working conditions, right to have safe and healthy working condition, right for fair income and 30 more civil rights that help citizen of European Union to be safe from poverty.

Goran Cetinic stressed that poverty in Yugoslavia exploded in last decade and is six times higher than European average. Not only that one third of Yugoslav citizen live below poverty line but another one third is living with very poor income perhaps not more than three to five dollars of daily consumption. The way out is propoore economic growth. Unfortunately present government is not showing enough worries and actions or strategies against poverty, their main worry still are pure political problems.

Prof. Srdjan Bogosavljevic pointed out that it is extremely important to come to exact data on poverty which is impossible with present practice of Federal Statistical Office. Many people in Yugoslavia are not living from their ordinary income but from selling real estate in Bosnia, Croatia and Slovenia. Around one million households in Serbia live under poverty line and have not chance to advance to upper category if serious economic development do not begin.

Philip O’Keefe stressed that poverty is accompanied by inequality which is also serious problem especially in transition countries. In FRY there is a need for development of competitive private sector, education, health sector, workforce market and institutional changes toward professional competent government to eliminate poverty. Top priority in eliminating poverty is economic growth with better targeting of poor. WB has recently approved 30 million dollars for FRY (as non-member country) targeted on banking and financial sector reforms, privatization, energy sector and social welfare program.

After discussion following conclusions were adopted:

• to live over poverty line is basic civil right
• poverty in Yugoslavia is widespread and that fact demand much higher attention from government than is case today
• transparent data on poverty do not exists and Government through FSO should improve data collection and dissemination and try to adopt to world standards and criteria in measuring poverty
• the problem of poverty should be approached as to economic and development problem and not only or predominantly as to social problem. Social solution are not lasting solution for the poor, only economic growth can change lastingly their status.
• Propoore economic growth should be a strategy of Government in eliminating poverty. To reach this it is important that government devote serious efforts to popularize propoore economic growth in its own institutions as well as in local institutions and entities.