The greatest happiness is to know the source of unhappiness. - Dostoevsky
RFE/RL NEWSLINE

RFE/RL NEWSLINE Vol 2, No. 188, Part II, 29 September 1998


___________________________________________________________
RFE/RL NEWSLINE Vol 2, No. 188, Part II, 29 September 1998

A daily report of developments in Eastern and Southeastern
Europe, Russia, the Caucasus and Central Asia prepared by the
staff of Radio Free Europe/Radio Liberty.

This is Part II, a compilation of news concerning Central,
Eastern, and Southeastern Europe.  Part I covers Russia,
Transcaucasia and Central Asia and is distributed
simultaneously as a second document.  Back issues of RFE/RL
NewsLine and the OMRI Daily Digest are online at RFE/RL's Web
site: http://www.rferl.org/newsline

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Headlines, Part II

* UKRAINIAN FINANCIAL CRISIS DEEPENS

* ALBANIAN PREMIER, INTERIOR MINISTER RESIGN

* COHEN SAYS NO EVIDENCE OF CEASE-FIRE IN KOSOVA

End Note: BULGARIA'S CURRENCY BOARD CEMENTS MACROECONOMIC
STABILITY
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EAST-CENTRAL EUROPE

UKRAINIAN FINANCIAL CRISIS DEEPENS... Ukrainian National Bank
Chairman Viktor Yushchenko on 28 September pledged to keep
the national currency within the new exchange rate corridor
of 2.5-3.5 hryvni to $1, which was introduced earlier this
month, AP reported. Yushchenko, however, gave no hint as to
how he intends to prevent the currency from further
devaluation. He had announced earlier that the National Bank
will not use its hard-currency reserves to support the
hryvnya. The hryvnya exchange rate fell to 3.37 to $1 on 25
September, compared with 2.25 to $1 at the beginning of this
month. JM

...BUT EBRD PLEDGES TO CONTINUE COOPERATION. The European
Bank for Reconstruction and Development is determined to
continue long-term cooperation with Ukraine despite the
country's financial troubles. "The EBRD has a long-term
commitment to Ukraine, we will remain involved in Ukraine,"
Reuters cited EBRD First Deputy Chairman Charles Frank as
saying. He added that the bank will focus on support for
Ukrainian small and medium-sized businesses, the energy
sector, and the privatization of telecommunications and
energy companies. Frank noted that Ukraine, unlike Russia,
has not defaulted on its debt payments and has not permitted
an insolvency crisis in the banking sector. He said Ukraine
can count on $1 billion from the EBRD for various projects
currently under consideration. JM

SELEZNEV URGES UKRAINE TO UNITE WITH RUSSIA, BELARUS... At a
meeting with the Ukrainian Supreme Council leadership in Kyiv
on 28 September, Russian State Duma speaker Gennadii Seleznev
urged Ukraine to unite with Russia and Belarus, AP and dpa
reported. "It would be hailed by our people as the most
important event of the 20th century," AP quoted him as
saying. In their talks with Seleznev, both Ukrainian
parliamentary speaker Oleksandr Tkachenko and Foreign
Minister Borys Tarasyuk urged the Russian parliament to
ratify the Ukrainian-Russian treaty, which was signed by the
two countries' presidents in May 1997. Seleznev assured
Tarasyuk that the Duma will resume debating ratification of
the treaty by the end of this year. JM

...RECEIVES MIXED RECEPTION IN SUPREME COUNCIL. Interfax
reported that the next day Seleznev failed to finish his
address to the Ukrainian parliament. When the Duma speaker
proposed that Ukraine should join the Russian-Belarusian
union, mainly Popular Rukh deputies began shouting that his
proposal was "provocative" and left the  hall in protest.
Earlier, the Rukh parliamentary caucus (47 deputies) refused
to register for the session. By contrast, the communist
parliamentary group (some 120 deputies) received Seleznev's
speech with applause. Other deputies frequently interrupted
the Russian official, particularly when he spoke
disapprovingly about Ukraine's possible admission to NATO and
the situation of the Russian language in Ukraine. JM

KUCHMA MEETS WITH KWASNIEWSKI. At an informal meeting in
Crimea on 28 September, Ukrainian President Leonid Kuchma and
his Polish counterpart, Aleksander Kwasniewski, discussed the
Russian financial crisis and a wide range of bilateral and
economic issues, DINAU reported on 28 September. Kwasniewski
assured Kuchma that Poland, following its EU entry, "will not
turn its back on Ukraine." According to Polish Radio, Kuchma
assured that the reconstructed cemetery in Lviv for Polish
youths who fell while fighting against Ukrainians in 1918
will be reopened this year. The cemetery was recently
desecrated with paint smears and anti-Polish slogans,
provoking a note of protest from the Polish Foreign Ministry.
JM

UKRAINE, BELARUS PLAN LONG-TERM ECONOMIC COOPERATION.
Ukrainian Premier Valeriy Pustovoytenko and Belarusian
Premier Syarhey Linh said on 28 September in Kyiv that
Belarus and Ukraine are strategic partners, ITAR-TASS
reported. They expressed the need to draft a long-term
program of economic cooperation. In Pustovoytenko's opinion,
the program should be a ten-year one. The Ukrainian
government's  press service told the agency that the two
leaders reached an understanding on several issues, including
barter settlements between their countries. Pustovoytenko
proposed to set up a banking consortium with the
participation of Ukraine's Prominvestbank, Belarus's
Promstroibank, and some Russian banks. According to Ukrainian
Trade Minister Serhiy Osyka, the long-term cooperation
program is already 70 percent complete and will boost
Ukrainian-Belarusian trade by up to $700 million next year.
JM

LUKASHENKA PLEDGES TO RETURN CHURCH PROPERTY. Belarusian
President Alyaksandr Lukashenka said on 27 September in
Vitsebsk that the state is ready to give back any property
that Communists confiscated from the Church in the 1930s and
1940s, Interfax reported the next day. While attending
religious events in Vitsebsk to mark the visit of Patriarch
of Moscow and All Russia Aleksei II, the Belarusian president
also pledged state assistance to the construction of Orthodox
churches in Belarus. "Orthodoxy is the only barrier that
protects us from falling into an abyss," the agency quoted
Lukashenka as saying the same day in Polatsk. On his four-day
visit to Belarus, Aleksei II praised Lukashenka's
contribution to the cause of the "spiritual rebirth of his
people" and noted that Belarus's greatest assets are "people
who very much love their country and their president." JM

ESTONIA'S ECONOMIC GROWTH TO FALL TO 4-5 PERCENT? Economic
growth in Estonia in the third quarter may fall to 4-5
percent, down from the targeted 8-9 percent, ETA reported,
citing a survey by the Estonian Market Research Institute.
According to that institute, the economic situation in
Estonia has worsened owing  to Russia's economic
difficulties, the financial crisis in southeastern Asia, the
bankruptcy of Maapank, and the rainy summer. The institute
also predicted that in six months, Estonia's economic
situation will be "somewhat worse" than it is now, with the
growth of foreign trade stunted and a worsening foreign trade
balance. JC

ULMANIS URGES VOTERS TO THINK BEFORE THEY VOTE IN CITIZENSHIP
REFERENDUM. Latvian President Guntis Ulmanis on 28 September
urged voters to think carefully before they cast their vote
in the referendum on amendments to the citizenship law, BNS
and Reuters reported. Speaking on state radio, Ulmanis said,
"Let those who have decided to vote for a rejection [of the
law] think as to whether they are giving Latvia positive
impetus or whether their vote will isolate Latvia from the
rest of the world." The amendments, which remove the so-
called "naturalization windows" and grant automatic
citizenship to all children born after August 1991, were
passed in June, but the signing into law of those changes was
blocked by the Fatherland and Freedom party's initiative to
force a referendum on the issue. That vote will take place
simultaneously with general elections at the end of this
week. JC

VOTE ON LATVIAN STATE LANGUAGE LAW POSTPONED. The third and
final reading of the state language law was postponed on 28
September owing to the lack of a quorum in the parliament,
RFE/RL's Latvian Service reported. Legislators had called an
extraordinary session to consider the law. The final reading
is now scheduled to take place on 8 October, several days
after the general elections and the referendum on amendments
to the citizenship law. JC

POLAND GREETS SCHROEDER'S VICTORY WITH RESERVE. Poland has
greeted the election victory of Gerhard Schroeder's Social
Democratic Party of Germany with reserve and lamented the
departure of Helmut Kohl, Reuters reported on 28 September.
"Kohl, a great friend of Poland, did a lot to better
relations between our countries and to integrate Poland into
NATO and the EU," Prime Minister Jerzy Buzek said. "It would
be much better for Poles if tested political forces had
remained at the helm," former Foreign Minister Wladyslaw
Bartoszewski commented. President Kwasniewski expressed the
hope that German policy toward Poland will remain unchanged.
Schroeder visited Poland in June and assured Poles that he
will not change Bonn's foreign policy or block EU expansion.
But he made clear that he will protect German jobs by
temporarily barring Polish cheap labor from the EU after
Warsaw gains membership. JM

RUSSIA TO PAY CZECH DEBT WITH SPARE PARTS. In an interview
with "The Defense News" given during his recent visit to
Washington, Czech Defense Minister Vladimir Vetchy says the
government has approved his proposal  to agree that Russia
settle its $ 3.4 billion debt to the Czech Republic by
delivering spare parts for the air force and other
equipment, ITAR-TASS reported on 29 September. MS

CZECH LEADERS HAIL SLOVAK OPPOSITION VICTORY. In a telegram
to Slovak Democratic Coalition leader Mikulas Dzurinda,
President Vaclav Havel on 28 September wrote that he hopes
the "big political change decided in a legitimate election"
will "lead to a rapid deepening of civic freedoms, the
strengthening of democratic institutions,...and economic
prosperity." Havel said this was "not only in the interest of
Slovakia, but of the whole Europe," Reuters reported. Foreign
Minister Jan Kavan told journalists the same day that in the
past, "the main argument against Slovakia" in its EU
membership bid was "a democratic deficit." He said that "if
the new Slovak government convinces its partners that it is
able to remove this deficit, I am convinced the chance [of
achieving membership] is there and the Czech government will
support it." MS

OFFICIALS FROM MECIAR'S PARTY MEET PROSPECTIVE COALITION
PARTNERS. Parliamentary speaker Ivan Gasparovic on 28
September said after a meeting of representatives of Vladimir
Meciar's Movement for a Democratic Slovakia (HZDS) with
officials from the Slovak National Party (SNS) that although
the election outcome was "a failure" for the HZDS, the party
remains the largest in the parliament and "that is not
insignificant." Gasparovic said the HZDS is interested in
negotiations "with all parties that show the same interest,"
RFE/RL's Bratislava bureau reported. Before the meeting, SNS
leader Jan Slota said his party will "respect a stable
coalition" formed by opposition leader Dzurinda, but he added
that such a government must exclude the Hungarian Coalition,
which he called "a threat to Slovak statehood." Meanwhile,
representatives of the opposition parties met again on 28
September and repeated their intention to seal an agreement
leading to the formation of a new government, AP reported. MS

EU SAYS SLOVAK POLL COULD SPEED UP INTEGRATION. Austrian
Foreign Minister Wolfgang Schussel, in a statement released
on 28 September in the name of the EU, said that Meciar's
government must respect the election results and make
possible the "orderly creation of a new government." Schussel
said that if this happens, "Slovakia will satisfy European
standards of democratic maturity and fulfill one of the key
preconditions for faster integration into the EU." Austria
currently holds the EU's rotating chairmanship. In Brussels,
the EU Commission welcomed the "free and fair" balloting in
Slovakia and expressed the hope that the opposition will soon
be able to form a government that will "improve the political
climate," AP reported.  MS

HUNGARIAN POLICE REMOVE KOSOVA REFUGEES FROM CANADIAN
EMBASSY. Police have removed more than 30 Kosova Albanians
from the grounds of the Canadian Embassy in Budapest,
Hungarian media reported on 29 September. The refugees were
demanding political asylum. Canadian diplomats asked police
to negotiate a settlement but later authorized the refugees'
forcible eviction after the talks failed. The refugees, 19 of
whom are children, put up no resistance when riot police
placed them into a bus and returned them to a refugee camp in
Bicske, some 40 kilometers west of Budapest. Some members of
the group had submitted  asylum requests three months ago and
wanted to pressure the Canadian authorities to process their
applications. MSZ

SOUTHEASTERN EUROPE

ALBANIAN PREMIER, INTERIOR MINISTERS RESIGN... Socialist
Prime Minister Fatos Nano resigned that office on 28
September. Earlier the same day, Interior Minister Perikli
Teta of the Democratic Alliance Party quit his post. Both
resignations came after the five governing coalition parties
failed to agree on unspecified government changes. In a
letter to President Rexhep Meidani, Nano said that he stepped
down because squabbling within the ranks of his party and the
coalition had made it impossible to form a new cabinet. He
added that "I am not receiving any credible signal of
solidarity either from parts of the Socialist Party or from
the coalition partners." Teta told journalists that "the
Albanian political [elite] is unable to bring the country out
of the current grave political crisis." He described the
country's leadership as "corrupt and incompetent," the BBC
reported. A BBC reporter suggested that Teta was unhappy with
Nano's "disappearance" from public view during the recent
unrest. FS

...WHILE BERISHA HAILS MEIDANI. Gunfire erupted in several
parts of Tirana on 28 September as word of Nano's resignation
spread. Political commentator Fatos Lubonja told the BBC that
opposition supporters celebrating the resignation apparently
fired the shots. Police stepped up patrols in the capital,
fearing a repetition of the unrest there earlier this month
(see "RFE/RL Newsline," 16 September 1998). Opposition
Democratic Party leader and former President Sali Berisha
said that Nano's resignation "opens the way for dialogue"
between the opposition and the governing coalition. He added
that Meidani played an unspecified role in Nano's resignation
and added that "the president has paved the way for a
political solution [of the] deep crisis." Berisha urged the
creation of a government of technocrats and stressed that the
new interior minister should be "honest and [not] work with
gangs and smugglers." FS

MAJKO TO REPLACE NANO? Meidani asked Nano to stay on until a
new government can be formed. Socialist Party legislator Musa
Ulqini said on 28 September that the party will propose its
secretary-general, Pandeli Majko, as Nano's replacement,  but
he gave no indication that the Socialists will consider new
elections, which the opposition Democrats demand. Widely
regarded as a reformer, the 31-year-old Majko began his
political career in the student protests that toppled the
communist dictatorship in 1990. Majko recently tried
unsuccessfully to end the feud between Nano and Berisha.
Lubonja, however, questioned whether Majko has the experience
and authority to fill the current power-vacuum. He suggested
that Meidani, whose position has been largely ceremonial,
will have to play a greater political role in the future. FS

COHEN SAYS NO EVIDENCE OF CEASE-FIRE IN KOSOVA... U.S.
Secretary of Defense William Cohen said in Rabat, Morocco, on
28 September that Washington has no evidence that the Serbian
forces have stopped their offensive in Kosova, despite
Serbian Prime Minister Mirko Marjanovic's statement to the
parliament that the fighting has ended (see "RFE/RL
Newsline," 28 September 1998). Cohen added that Marjanovic's
claim "may be another rhetorical declaration without any
intent to match those words with concrete steps. We have seen
no evidence that there has been any strategic drawback at
this point, and we will insist that whatever words [Yugoslav
President Slobodan Milosevic] issues will be followed up by
deeds." PM

...AS DO KOSOVARS. Ethnic Albanian spokesmen said in
Prishtina on 28 September that the Serbian offensive is
continuing in several areas to the west of the provincial
capital, RFE/RL's South Slavic Service reported. The
spokesmen added that the Serbian authorities have "declared
war not only on the Kosova Liberation Army [UCK] but on the
entire Albanian nation." The BBC reported on 29 September
that at least 15 villages west of Prishtina are either being
shelled by Serbian forces or are still burning as a result of
previous attacks. It added that Kosovar civilians are
continuing to flee their homes in those areas where the
offensive is in progress. In Prishtina, the presidency of the
moderate Democratic League of Kosova (LDK) issued a
declaration saying that Marjanovic's statement is aimed at
manipulating international public opinion, an RFE/RL
correspondent reported from the provincial capital. The LDK
called on NATO to intervene quickly to end the crisis. PM

MARJANOVIC SAYS 'PEACE REIGNS.'  Marjanovic also told the
parliament on 28 September that UCK fighters will be granted
an amnesty provided that they turn in their weapons to the
authorities within 10 days, RFE/RL's South Slavic Service
reported. He  named Zoran Andjelkovic to head a new
provisional Supreme Council to govern the province and called
on ethnic Albanian leaders to start a dialogue with the
Serbian authorities. Marjanovic added that "peace reigns [in
the province] and life is returning to normal.... There is no
humanitarian catastrophe.... All assertions to that effect
are lies.... As of today, anti-terrorist activities [against
the UCK] have ended. They will be renewed only if any new
bandit and terrorist activity reappears," "Nasa Borba" wrote.
PM

CROATIAN OPPOSITION WANTS INVESTIGATION OF SECRET SERVICES.
Leaders of six opposition parties agreed in Zagreb on 28
September to call for a parliamentary discussion of possible
misuse of the secret services for political purposes by the
governing Croatian Democratic Community. The opposition
leaders also demanded that the parliament set up a special
committee to investigate the charges, RFE/RL's South Slavic
Service reported. In New York, the UN Security Council agreed
that Croatian local police have become more professional
recently but noted that ethnically motivated violence has
been on the rise. The council also agreed that the judiciary
has been lax in dealing with ethnically related incidents and
that the government has not done enough to promote
reconciliation between Serbs and Croats. PM

DUTCH MINISTRY CLEARED ON SREBRENICA CHARGES. Jos van
Kemenade, who heads the independent commission investigating
accusations that the Defense Ministry covered up evidence on
the role of Dutch peacekeepers in the fall of Srebrenica,
said that the charges are unfounded (see "RFE/RL Newsline,"
13 August 1998). Speaking in Amsterdam on 28 September, he
added that "there are no indications from this investigation
that information was deliberately withheld or got rid of by
the Ministry of Defense or by others, in other words there is
no question of a cover-up." He added, however, that
cooperation was poor between several government agencies in
response to public criticism of the Dutch role during and
after the Serbian attack on the eastern Bosnian town, Reuters
reported. PM

ROMANIAN PRESIDENT REACTS TO 'FEDERALIZATION' INCIDENT...
Emil Constantinescu on 28 September asked the cabinet to file
an official complaint with the Austrian government about  the
demand made last week by an Austrian citizen of Hungarian
descent  for Romania's federalization. He said that he will
also write to his Austrian counterpart about the incident.
Eva Maria Barki had told a Hungarian forum in Transylvania
that the problems of Romania's ethnic Hungarians can be
solved only if Romania is federalized. Constantinescu said
the declaration infringed on Article 30 of the constitution,
which forbids "territorial separatism and incitement to
public violence." Barki was declared "persona non grata" by
the government of Nicolae Vacaroiu in 1994, but that status
expired three years later. MS

...WHILE OPPOSITION SAYS IT MAY START  SUSPENSION PROCEDURES
AGAINST HIM. The opposition Party of Social Democracy in
Romania (PDSR) has announced that it may start procedures for
Constantinescu's suspension from office. This follows
similar statements by the Party of Romanian National Unity
and the Greater Romania Party. All three parties said
Constantinescu failed to defend Romania's territorial
integrity by not reacting to the Barki incident. The PDSR
also said Constantinescu undermined the independence of the
judiciary in a statement made last week on the struggle
against corruption, RFE/RL's Bucharest bureau reported. MS

NATO SECRETARY-GENERAL IN MOLDOVA. Javier Solana met with
President Petru Lucinschi, Premier Ion Ciubuc, parliamentary
chairman Dumitru Diacov, and Foreign Minister Nicolae
Tabacaru in the Moldovan capital on 28 September, RFE/RL's
Chisinau bureau reported. After meeting with Lucinschi,
Solana said the problem of the withdrawal of Russian troops
from Transdniester  cannot  be solved by negotiations between
NATO and Russia and must be dealt with "multilaterally,
through negotiations." Solana also said he discussed with
Lucinschi the conflict with the Tiraspol separatists and
praised Moldova's contribution to the Partnership for Peace
program. Lucinschi said that Moldova is a neutral state but
that does not hinder close military and other types of
relations with NATO. He added that he had discussed with
Solana plans for a reform of Moldova's military. MS

BULGARIAN PRESIDENT VETOES MEDIA LAW. For the first time,
Petar Stoyanov has exercised his presidential veto right,
blocking the media law approved by the parliament (see
"RFE/RL Newsline," 24 September 1998), an RFE/RL
correspondent in Sofia reported on 28 September. Stoyanov
told journalists that he objects to the government's
appointment of representatives on state television and radio
managerial boards, saying political neutrality may be
affected. He also objected to the provision in the law
allowing broadcasts in languages other than Bulgarian on
regional, but not on national frequencies. A third ground for
the veto is the stipulation depriving state television of the
right to broadcast prime time advertising until the creation
of privately owned national stations. Finally, Stoyanov took
issue with the provision imposing a new tax on all households
for the financing of state television and radio, regardless
of whether they own a television set. MS

END NOTE

BULGARIA'S CURRENCY BOARD CEMENTS MACROECONOMIC STABILITY

by Michael Wyzan

	Since Bulgaria introduced a currency board arrangement
on 1 July 1997, the lev has been trading at 1,000 to the
Deutsche mark and has been fully backed by the Bulgarian
National Bank's (BNB) foreign reserves.
	Under a currency board, the only permissible increases
in the domestic money supply are those resulting from
converting foreign currency inflows into domestic currency.
In principle, the monetary authorities may no longer finance
government budget deficits or offer credits to commercial
banks. In practice, a BNB department is entitled to serve as
a lender of last resort to such banks. It has yet, however,
to avail itself of that option.
	The Bulgarian experience with the currency board
arrangement is relevant for other struggling transition
economies, especially Russia, which recently considered
introducing one. In such cases as Argentina, Estonia, and
Lithuania, the arrangement is designed as a way to instill
confidence in macroeconomic policy-making.
	While that motivation existed in Bulgaria,
establishing the board was driven primarily by the need to
end practices that were impeding structural reform. Banks
made loans to enterprises, which frequently did not repay
them. The BNB then "refinanced" (lent money to, often without
collateral) the banks or the government replaced those loans
with government debt. With the introduction of the currency
board--and even several months before it--such practices
abruptly ended.
	Based on short-term macroeconomic indicators, the
board is an unqualified success some 15 months after its
introduction. Consumer prices have fallen in each of the last
three months, and inflation was only 6.1 percent in the year
to August (as recently as August 1997, the monthly rate was
5.5 percent). The three-year loan agreement worked out with
the IMF projects 9 percent inflation for 1998.
	The fixed exchange rate under the currency board has
restored confidence in the lev, as evidenced by the rise in
the BNB's foreign reserves from $381 million in January 1997
to $2.9 billion in June 1998 and by the low level of interest
rates (the BNB's base rate is just over 5 percent). The
fiscal situation is better than expected: on 1O September,
the government announced that there will be a 190 billion
leva ($112 million) surplus this year, compared with a
projected deficit of 2.7 percent of GDP.
	While it is evident that the currency board has
ushered in an era of macroeconomic stability,  the question
remains as to whether it will promote sustained, rapid
economic growth. In Estonia, where the board was introduced
in June 1992, GDP growth did not resume until 1995, although
much of this lag resulted from the after-effects of the
breakup of the USSR. By 1997, Estonia was the fastest growing
transition country, with the exception of Bosnia-Herzegovina.
	Little information is available to date on GDP growth
in Bulgaria this year. For the first quarter, growth was an
enormous 18.5 percent, but that figure reflects the collapse
of the economy in the first quarter of last year. The program
for the year projects growth at 4 percent. Other indicators
suggest that the economy is picking up: unemployment fell to
11.4 percent in June, its lowest level since October 1996,
while the average monthly wage reached $111 in June, the
highest since April 1996.
	At the same time,  there is concern about rising
(dollar) labor costs and a deterioration in some balance of
payments items, both associated with a fixed exchange rate
under continuing inflation. The trade surplus in the first
quarter was $61.8 million, down from $305.7 million during
the same period of 1997. The current account has swung into
the red, reaching $17.2 million in the first quarter,
compared with a surplus of $151.8 million from January to
March 1997.
	Although some observers are raising red flags over
those labor-market and external-sector tendencies, such
concerns seem premature. At $111, the monthly wage is well
below those in Central Europe (including Macedonia) and below
its previous peak of $128 in September 1993. Moreover,
current account deficits far larger than what Bulgaria seems
to be experiencing have accompanied rapid economic growth in
many successful transition countries.
	Attracting foreign direct investment, which enhances
productivity, will be crucial  to withstanding the effects on
the current account balance of the fixed exchange rate under
the currency board. There was a major increase in such
investment last year (to $498 million, compared with $109
million in 1996). This year, the government is putting up an
increased number of enterprises for sale to foreign
investors, and several large deals have made headlines. The
success of the currency board experiment will hinge as much
on its privatization efforts as on improvements in
macroeconomic indicators.

The author is a research scholar at the International
Institute for Applied Systems Analysis in Laxenburg, Austria.

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