The Institute for Macroeconomic Analysis and Development (IMAD) belongs to the Government of the Republic of Slovenia. Organized independently, it is responsible for reviewing economic and social policy guidelines, considering development strategies, cooperation, and forecasting economic integration.
– What factors have contributed to the country's rapid adaptation to a market economy?
Before Independence, under socialism, Slovenia was the region of Yugoslavia that worked most closely with EU countries, with market structures that other socialist countries did not have and that brought the country closer to the free market system.
– How have the privatization phases been carried out?
Privatization in Slovenia has been gradual, based on a distribution system in which all market activities were privatized. Compared to other countries, the private sector is very small in Slovenia, representing 64% of GDP.
The energy sector remains to be privatized, with the exception of distribution, TELECOM and Banca de Crédito De Marbor, whose privatization is planned in a similar way to that of Banca de Ljubljana.
– Is there a fear of foreign investment?
Previously, Slovenia operated on a quota system, which was one of the obstacles to foreign investment. Another problem was the bureaucratic red tape involved.
Within the Ministry of Economy, there is a Promotion Office that is preparing a program of direct investments for the entry of foreign capital.
The IMAD (Institute for Modernization and Development) prepares a report twice a year on economic trends that informs the national budget. The latest report, covering the first half of this year, anticipates slow economic growth of 3,3%, due to internal factors such as last year's decline in investment; more consistent growth is projected for the second half of 2002.
– What can you tell us about the unemployment rate?
Unemployment has been decreasing since 1999; the completion of the economic restructuring this year will significantly improve the unemployment rate. Thus, the problem of unemployment is structural, which is why a large proportion of the unemployed are over 50 years old, and another percentage are people without formal education. The regional factor also plays a role, making the unemployment rate dependent on a particular region. The potential division of the country into regions could help stabilize this situation through access to European funds.
-How can consumption and personal savings be encouraged?
One of the factors driving economic growth last year was savings, driven by high bank interest rates and substantial income from euro exchanges. The cap on public investment has generally impacted all investments, and a significant amount of capital has been directed abroad. The country's internationalization implies increased commercial activity and reduced spending.
In 2004, the National Savings Scheme will be launched, with the construction of officially protected housing.
– What is the influence of the Eurozone on the country?
There have been no direct influences, although the inflation caused by the switch to the euro in neighboring countries has had a slight impact. Slovenia is expected to experience a 4,6% inflation rate in the minting of its currency.
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