We must work our way out of the crisis

I see there are some (teoretical) similarities between croatian and swedish social system even if i guess yours work far better in practice, then ours.

In Croatia, there is also a strong initiative to reduce budget and goverment spending as incomes are dramatically reduced. First ‘at the table’ went unnecessary or less important areas, but as approaching sensitive ones it become more difficult to cut spending, so goverment already took several 1 billion $ loans (i think at about 7% interest rate).

One problematic (economic and social suistanability) issue in further reducing budget costs is a probable consequence of further increasing unemployment and reducing market spending, which would even more reduce budget income (not to mention intensify social problems). The key solution would be of course if reducing of taxes and public spending would immediately result with more jobs and investments in the private sector, but who knows how much time would have to pass that to happen. And even, would other (thus created) instability factors in fact even more reduce desirability for investments (?).

Morover, it is very strange (as an example) that despite lot’s of infrastructure investments and relatively low wages (mostly about 500 – 600 Euros) so far there was almost none green field investments in Croatia in last two decades (apart from banks, real-estates and hypermarkets, which were of very little real use for national economy development so far). To be competitive with lower prices, taxes and wages than global competitors like China and India, would probably be of no use if even possible. It would maybe be more appropriate to raise customs and reinstate efficient planning economy on every level possible, maybe even global (?)

However, in general reducing taxes could be also seen as a relative weakenning of public versus private sector, which could also mean increasing the shift from people to capital power. So, teoreticaly this could mean the one who owns more capital has more votes or rights, than the others who don’t. This would (in extreme but probable case) leave future general elections without meaning, as important decisions would be taken somewhere else. So a conflict between liberalism and democracy is evident if there isn’t a right balance, because what would mean more freedom for one, would result in less (maybe even basic) freedom for the other(s).

So, there have to be some powerfull enough institution (state) to defend and represent common and personal rights of the people and develop suitable environment for further common and personal development. Of course, for this to be able to do, it has to have adequate budget and employ sufficient number of people at efficient (but wellbeing) manner. From my experience in Croatia i would say that our institutions should (at least in some areas) even invest more money and employ more people into public administration, especially those who operate directly with citizens and who should make inspections.

Some expect to be able to solve much of the problems with future EU rules and funds, after joining in 2012, while the others are sceptical, and even say we would loose more money then we would get (especially on big internationaly open contract programs).

Considering stimulating employment with budget payment to the companies for those long unemployed, i happened to be one of them as a young bussines apprentice. Employer took the money from goverment (about 4000 Eur) and after 6 months went to bankruptcies. I’ve got payed for solely 1 month and learned about how awfull is to work for decaying company, as a sailor on a ship with too many holes. So a point is that a good perspective company wan’t need couple of thousand Euro from the goverment, such will most likely spend that money and soon send it’s employees back to employment agency. …

This could maybe help start up companies however, but from the literature and from experience the probability of such company to achieve suistainable bussines position and stay alive after a year or two are less then 15 % (or 1:7)! One of the problem is in good bussiness planning and circumstances which can be very harsh for those who don’t have proper funds and experiences. …

The younger people in Croatia are also having much difficulties in finding a job. It seems employers are never satisfied with the age, while there isn’t a clear boundary who is to be considered to young or to old. The key difference is of course are you experienced enough for your age. But how you will get your experience if you can not find your first real job without it ? Morover, there are hundreds of companies, all with some diferences and specific demands, and they are always asking something, but rarely prepared to bear their part of responsibility, even when they can (during education period or after it). As people were born as experts. The state is often over occupied only with collecting taxes, when searching real assistance from it often directing citizens to solve their problems alone on the open market. No wonder it has become of little use for how much it spends, even if that is obviously due to some less transparent international deals and factors (which to most gave more obligations then benefits), too. …