6 hours agoKurti promised pay subsidies to private workers: Economist tells Periscope that economy is poor
Periskopi(6 years ago)
(6 years ago)Albin Kurti has already been elected prime minister of Kosovo. At the session, where he was expected to be voted prime minister, he presented the exhibition to show the capital points of the governing programme, even though he did not bring in the detailed government programme, as no other prime ministers had done before him. An economic point appeared [...]
His exhibition was 24 minutes old, in which Kurti briefly read the provisions of the Co-ordination Agreement that had reached with the Democratic League of Kosovo. [ Footnote] LDK].
The point of the economic programme that seemed very interesting was that of subsidising salaries for workers and the private sector. It seems, Mr. Kurti has taken it in reflection on the Law of Salaries that are expected to raise the salary for public sector workers, making it much higher than the wages of workers in the private sector, writes Periscope.
But economist Mustafe Kadriaj, contacted by our portal, has expressed scepticism about this idea by naming it “populist “ ” and with negative consequences in case of eventual realisation.
“Making economics in Kosovo, with a free market orientation and full competition, where the state creates legal and technical infrastructure for normal business functioning, creating environments for doing business, therefore attracting foreign investors. So a stable and competitive business affects competitive prices and higher wages and at the same time is contributing to the state ark. With that I want to point out that however much the current prime minister with these ideas has wanted to be creative and populist, Kosovo is oriented with free market economy,” he said.
According to him, private sector workers with state-grown wages would become more lazy, while businesses would be lowered in ambition for competitiveness, even though it has not clarified exactly why this will happen.
As a result of this decision, he stresses that Kosovo's state budget will have less tax revenues.
If this promise is to survive, the effect will be negative for the fact that it will affect the sloth of the workforce and businesses will not have competitive ambitions, and as a result we will have a decline in productivity at work, which will affect the state because we will have fewer taxes and taxes on the state ark. Mr. ” stated: Cadre for Periscope.
According to economic connoisseur, these ideas are good, in writing and saying but not in practice, based on the experiences of countries that have practiced it.
So these ideas are good at saying and writing but not at all living as ideas, because these ideas have been proven in the Eastern bloc and especially in the former Communist Albania, where the world's poorest place remained. ” he added further.
However, it is noteworthy that there was no private sector in Communist Albania, which makes Mr. Kadriaj about the case. /Periscope
