What's going on in Bosnia?
12/2/14 00:09![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
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talkpoliticsBarricades, burning cars and buildings, armored riot forces - such sights hadn't been seen in Bosnia since the civil war in the 90s. But now they're fact. The Bosnians have been protesting for days against the corruption, misery and unemployment in their country.
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It all started last Thursday in Tuzla, in the northern part of B&H. Thousands of people, among them former workers at the major local industries that had been privatized and dismantled, gathered on a protest against corruption, the hard economic situation and rampant unemployment. The event then turned violent, over 100 cops were injured, plus 30 protesters. By Friday night, the protests had spread to other towns. In the captial Sarajevo, the crowd set cars and government buildings on fire, smashed shop windows, destroyed tramway stops and phone cabins.
So how did the Bosnians reach this point of anger, you might ask? Well, let's look at Tuzla first, the place where it started. It used to be one of the major industrial hubs in former Yugoslavia. Companies like Polihem, DITA, Konjuh and Resod-Guming were contributing to the prosperity of the whole region. People used to call them "money factories", because they used to bring considerable revenue to the region. But now the workers in those enterprises have been left with no other option but to go on protest, because their employers have failed them. But not because the enterprises are unsuccessful, or for lack of clients and sales, no. They've failed because of corruption and nepotism that's reigned there for years. The cup was finally spilled when the workers at Polihem, DITA and Resod-Guming hadn't received their salaries and health insurance for more than a year.
Before the war in Bosnia, Polihem used to have 1200 workers and could boast of an annual revenue of 60 million euros. The company had a huge strategical significance for the regional economy because it produced chemicals for the coal power plant in Tuzla. During the war, the workers managed to buy off 49% of the shares in the company, so a large amount was accumulated in the bank accounts of the company.
However, after the war the Bosnian politicians started massive privatization of the bigger companies. First they took control of the state enterprises. The local authorities in Tuzla appointed new directors who were far from being experts in the field. What mattered was that those were loyal to their political line. The debts started piling on, especially to the energy industry.
Polihem's staggering debts made the company even more dependable on the politicians. It didn't take too long for the state privatization agency to find them a new buyer, the Polish company Organic Trade. The Poles bought Polihem for the ridiculous price of 11 million Bosnian marks. Then they created a splinter company Organika BiH, and promised to invest 70+ million euros and create more jobs. Not long after that though, the new owner started mass job cuts with the excuse that the company's produce wasn't finding adequate markets abroad.
Meanwhile, the splinter company was granted enormous loans from the banks, taking the Polihem assets as a guarantee. At the end of the day, the banks took what was theirs by contract, and sold out all the equipment to the scrapheap dealers. Thus, Polihem successfully completed the full transformation from a successful enterprise to a money laundry to a heap of rusty ruins. And behind all this stood the local mafia, which made fabulous amounts of money during that muddy period. All the while, the purported Polish "investor" not setting foot on Bosnian soil even once. There've been hundreds of complaints and reports to the authorities, but of course nothing has been done on the issue so far.
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The situation is similar with DITA, the company that produces washing chemicals. Or at least used to, at the times of Yugoslavia. It was one of the leading enterprises in the sector. After the war, there were almost 800 people working there, and they managed to buy off close to half of the shares. Despite that, the politicians were the ones setting the top management there. First they sacked the competent director and substituted her with a loyal party apparatchik. And then everything started sliding down pretty fast.
Right from the onset, the whole privatization process was done in a completely fucked up way, and quite deliberately so. For instance, in Bosnia it's legally possible to buy a company way below its real price. Or to gain only 30% of the shares and still be able to control it unilaterally. For the "investors" it was more important to acquire the desired enterprise, than develop a sustainable industry. All they cared about was fast returns, grabbing the money and then running away. They sacked the most competent staff, they sold off all facilities and all the equipment at ridiculous prices. And the authorities were turning the other way all the time. And making good money out of "commissions" in the process.
So here's where we're at, right now. The people have had enough of it, they're angry, and they're prepared to burn the country down in order to be heard. The politicians haven't uttered a word on the question thus far. Still, the local government in Tuzla seems eager to sit at the round table and mediate a truce between the owners of these failed enterprises and the protesters. But naturally, the Bosnians are skeptical about all this. They'll remain on the streets. Because the problem goes way beyond just this one case. It's the rampant corruption, poverty and misery, and the general feeling that the rulers have betrayed the people, that's only bound to fuel the indignation more and more. Unfortunately, I don't see things getting better before they've gotten much worse, first.
The only positive thing is probably the fact that anger with their country's status of a failed state seems to have united the various groups in Bosnia like never before.
[Error: unknown template video]
It all started last Thursday in Tuzla, in the northern part of B&H. Thousands of people, among them former workers at the major local industries that had been privatized and dismantled, gathered on a protest against corruption, the hard economic situation and rampant unemployment. The event then turned violent, over 100 cops were injured, plus 30 protesters. By Friday night, the protests had spread to other towns. In the captial Sarajevo, the crowd set cars and government buildings on fire, smashed shop windows, destroyed tramway stops and phone cabins.
So how did the Bosnians reach this point of anger, you might ask? Well, let's look at Tuzla first, the place where it started. It used to be one of the major industrial hubs in former Yugoslavia. Companies like Polihem, DITA, Konjuh and Resod-Guming were contributing to the prosperity of the whole region. People used to call them "money factories", because they used to bring considerable revenue to the region. But now the workers in those enterprises have been left with no other option but to go on protest, because their employers have failed them. But not because the enterprises are unsuccessful, or for lack of clients and sales, no. They've failed because of corruption and nepotism that's reigned there for years. The cup was finally spilled when the workers at Polihem, DITA and Resod-Guming hadn't received their salaries and health insurance for more than a year.
Before the war in Bosnia, Polihem used to have 1200 workers and could boast of an annual revenue of 60 million euros. The company had a huge strategical significance for the regional economy because it produced chemicals for the coal power plant in Tuzla. During the war, the workers managed to buy off 49% of the shares in the company, so a large amount was accumulated in the bank accounts of the company.
However, after the war the Bosnian politicians started massive privatization of the bigger companies. First they took control of the state enterprises. The local authorities in Tuzla appointed new directors who were far from being experts in the field. What mattered was that those were loyal to their political line. The debts started piling on, especially to the energy industry.
Polihem's staggering debts made the company even more dependable on the politicians. It didn't take too long for the state privatization agency to find them a new buyer, the Polish company Organic Trade. The Poles bought Polihem for the ridiculous price of 11 million Bosnian marks. Then they created a splinter company Organika BiH, and promised to invest 70+ million euros and create more jobs. Not long after that though, the new owner started mass job cuts with the excuse that the company's produce wasn't finding adequate markets abroad.
Meanwhile, the splinter company was granted enormous loans from the banks, taking the Polihem assets as a guarantee. At the end of the day, the banks took what was theirs by contract, and sold out all the equipment to the scrapheap dealers. Thus, Polihem successfully completed the full transformation from a successful enterprise to a money laundry to a heap of rusty ruins. And behind all this stood the local mafia, which made fabulous amounts of money during that muddy period. All the while, the purported Polish "investor" not setting foot on Bosnian soil even once. There've been hundreds of complaints and reports to the authorities, but of course nothing has been done on the issue so far.
The situation is similar with DITA, the company that produces washing chemicals. Or at least used to, at the times of Yugoslavia. It was one of the leading enterprises in the sector. After the war, there were almost 800 people working there, and they managed to buy off close to half of the shares. Despite that, the politicians were the ones setting the top management there. First they sacked the competent director and substituted her with a loyal party apparatchik. And then everything started sliding down pretty fast.
Right from the onset, the whole privatization process was done in a completely fucked up way, and quite deliberately so. For instance, in Bosnia it's legally possible to buy a company way below its real price. Or to gain only 30% of the shares and still be able to control it unilaterally. For the "investors" it was more important to acquire the desired enterprise, than develop a sustainable industry. All they cared about was fast returns, grabbing the money and then running away. They sacked the most competent staff, they sold off all facilities and all the equipment at ridiculous prices. And the authorities were turning the other way all the time. And making good money out of "commissions" in the process.
So here's where we're at, right now. The people have had enough of it, they're angry, and they're prepared to burn the country down in order to be heard. The politicians haven't uttered a word on the question thus far. Still, the local government in Tuzla seems eager to sit at the round table and mediate a truce between the owners of these failed enterprises and the protesters. But naturally, the Bosnians are skeptical about all this. They'll remain on the streets. Because the problem goes way beyond just this one case. It's the rampant corruption, poverty and misery, and the general feeling that the rulers have betrayed the people, that's only bound to fuel the indignation more and more. Unfortunately, I don't see things getting better before they've gotten much worse, first.
The only positive thing is probably the fact that anger with their country's status of a failed state seems to have united the various groups in Bosnia like never before.
(no subject)
Date: 11/2/14 17:22 (UTC)Seems like pseudo-capitalism has crept all across the region, at a different speed in the different places, but invariably so.
(no subject)
Date: 11/2/14 19:57 (UTC)(no subject)
Date: 11/2/14 19:59 (UTC)Although some of the former Yugoslav republics seem to be making larger steps towards that. Like Serbia, recently. It's amazing how a country that's gone through a civil war and NATO bombardment, and part of it seceding, and economic and political isolation, could still bounce back in the manner that Serbia has. Those guys sure are very tough.
(no subject)
Date: 11/2/14 22:35 (UTC)(no subject)
Date: 12/2/14 00:00 (UTC)(no subject)
Date: 12/2/14 04:11 (UTC)Ideally yes, but in reality, sadly, no. The examples are far too numerous; from American Native Tribes to Africa to Tibet to the suburbs everywhere.
(no subject)
Date: 12/2/14 09:38 (UTC)I'd suggest a more nuanced reply. History is often chaos, and there are many examples of a polity's movement to some tipping point where either political change is effected peacefully or the mob leads the tumbrels full of folk like me to Madame la Guillotine.
And in the 21st century the virus of discontent has new vectors.
(no subject)
Date: 12/2/14 09:56 (UTC)(no subject)
Date: 12/2/14 12:59 (UTC)Some folk's idea of history is really quite narrow. And rather ideologically hidebound.
Whereas I am an outlying member of the upper classes, and would prefer, in the new and coming world which Cassandra-like I can foresee, that my privileges were curtailed only slightly, rather than at the neck.
(no subject)
Date: 12/2/14 15:31 (UTC)Western nations should know that sometimes they won't get away with it, but sometimes they will.
(no subject)
Date: 12/2/14 16:03 (UTC)These things are rarely cut and dried, but it is my opinion that, in general, we cannot enslave our majority, nor can we oppress them overmuch without them responding...and when we ignore this, the chaotic nature of the dynamic unleashed make outcomes unpredictable.
But, in the 21st century, I doubt British soldiers could fire upon British people upon the mainland: though I'm pretty certain that British police would be happy to truncheon the skulls of, let us say, striking miners or transport workers. However, these things know no national boundaries any more. The Arab Spring and the Ukrainian protests and now Bosnia speak of a deep malaise in many of the worlds polities. Occupy didn't manage much, but that is because the US seems politically adrift from the rest of the world: and also because American discontent seems to be expressed in birtherism and its many fellow travellers, for historical and structural reasons.
What is interesting is how China is dealing with things post Tianamen. But the years of discontent are upon us, and how we respond has some bearing on the outcome...it ain't just all blind chance.
[Tips Hat.]
(no subject)
Date: 13/2/14 02:53 (UTC)Police brutality numbers are up all over the western world. I attribute much of that to command culture but also to rampant steroid use amongst cops. And saddest thing is they get away with it.
What do you mean, What is interesting is how China is dealing with things post Tianamen> I agree China has changed course but it does so with regularity very rapidly Also responds just as quickly to perceived threats. But that's also because there's no politics getting in the way of action.
In post-wikileaks and post-Snowden world it's interesting that not much has changed. Canada announced today that it's allocated $1.2b to build an insane spy palace (http://www.huffingtonpost.ca/2014/02/11/spy-palace-csec_n_4762228.html?ir=Canada+Business&just_reloaded=1). Has the budgets dropped for CIA, NSA, MI6, etc ? No, and probably won't either.
(no subject)
Date: 12/2/14 09:55 (UTC)(no subject)
Date: 13/2/14 01:08 (UTC)(no subject)
Date: 13/2/14 02:54 (UTC)(no subject)
Date: 13/2/14 03:16 (UTC)(no subject)
Date: 13/2/14 01:06 (UTC)