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Household Survey Report #10 Institute for Strategic Studies And Household Survey Report #10 ISSN 1451-4850 Editorial Board: William W. Beach Director of Center for Data Analysis, The Heritage Foundation Rene Castro Professor at INCAE the Central American Business School Richard H. Clarida C. Lowell Harriss Professor of Economics, Columbia University Thomas Gale Moore Senior Fellow, Hoover Institution, Stanford University Vasilis Panoutsopoulos European Commission Food Security Program Beryl W. Sprinkel President, BW Sprinkel Economics Michael Tanner Director of Health and Welfare Studies, Cato Institute Ruta Vainiene Vise President, Lithuanian Free Market Institute Ruslan G. Yemtsov Senior Economist, ECSPE, World Bank This report was prepared by the Institute for Strategic Studies and Prognoses (ISSP) in cooperation with Center for Entrepreneurship and Economic Development (CEED) based on the eights rounds of Household Survey carried out in period from May 2001 to May 2004. Surveys were financed by the World Bank, the European Commission Food Security Programme and Chesapeake Associates, United Nation Develpment Programme and Ministry of Health. During this period, the Ministry of Labor and Social Welfare of Montenegro, the Republic of Montenegro Bureau of Statistics MONSTAT and BearingPoint provided technical advice and support. The presentation of the material and its designations, findings and interpretations express the opinion of ISSP and CEED and do not imply the expression of any opinion whatsoever on behalf of the World Bank and USAID. Institute for Strategic Studies and Prognoses (ISSP), Podgorica, Montenegro 1 Household Survey Report #10 Institute for Strategic Studies and Prognoses (ISSP), Podgorica ISSP Series: Surveys Editor of the Series: Veselin Vukotic, PhD Editor of the Report: Petar Ivanovic, PhD Survey Coordinator: Dragana Radevic Layout: ISSP Cover Design: Nebojsa Klacar Printed by: Montcarton, Podgorica Survey managed by: Petar Ivanovi}, Executive Director of the ISSP Survey coordinator: Dragana Radevi} Consultants: Ruslan Yemtsov, Kathleen Beegle, Greg Ringer Data analysts: Dragana Radevi}, Ana Bu{kovi}, Jelena Peruni~i}, Jelena Pavi}evi}, Budimka Mi}kovi}, Jelena Janju{evi}, Marina Milić, Darko Konjevi}, Ana Kumburovi}, Sanja Be~i}, Vesna Tomovi} Ojdani}, Milica Perovi}, Milena Lipovina, Jelena Lipovina Data entry & Marina Mili}, Jelena Pavi}evi}, Jelena Peruni~i}, Ivana Nika~, Slavica Nikoli}, processing: Vesna Tomovi} Ojdani}, Miroslav Boljevi}, Sr|an Jankovi}, Ana Kumburovi}, Julija Cerovi} Supervisors: Jadranka Kaludjerovi}, Budimka Mi}kovi}, Jelena Jaukovi}, Veljko Karad`i} Surveyors: Gorica Tomovi}, Ivana Rakonjac, Andrijana Mili~i}, Anto Milo{evi}, Slavica Labovi}, @arkovi} Milenko, Zora Bo{kovi}, Mara Peruni~i}, @ana Garda{evi}, Branko Trebje{anin, Marijo Su{a, Dragana Jovanovi}, Nikola Rov~anin, Slobodan Gaji}, Cvetana To{kovi}, Irena Mili}, Iva Be~i}, Daca Grbav~evi}, Milica Peri{i}, Danijela Sekuli}, Marina Pekovi}, Ivana Latkovi}, Rajko Nikoli}, Novica Vujovi}, Nata{a [}epanovi}, Goran Joveti}, Jovica Jovanovi}, Gligor Boji}, Milena Labovi}, Gorica Boji}, Olja Kumburovi}, Milan Jovovi}, Tina Kumburovi}; Golub Jo{ovi}, Filip Petrovi}, Ned`medin [alja The Institute for Strategic Studies and Prognoses (ISSP) is the first economic think-thank established in Montenegro to support economic reforms. The mission of the ISSP and its network of related organizations is to support the development of market-based economic systems, both within Montenegro and throughout the region, through economic policy reform, private sector initiative and advocacy, market-oriented programming and application of international standards to research, education and economic thought. Web site: http://www.isspm.org E-mail: [email protected] Copyright © October 2004 ISSP All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system without the prior written permission of the publisher. 2 October 2004 Household Survey Report #10 TABLE OF CONTENTS GRAPHS AND TABLES 1. INTRODUCTION 5 2. COMMENTS 6 2.1 CUSTOMS PROCEDURE 6 2.2 GREY ECONOMY IN MONTENEGRO 17 2.3 MONTENEGRO SUSTAINABLE TOURISM ASSESSMENT 22 2.4 SUSTAINABLE WAY OF LIFE – LINKS BETWEEN POVERTY AND ENVIRONMENT 29 2.5 VIRTUAL REALITY OR REAL VIRTUALITY? - TENDENCIES AND PERSPECTIVES 37 OF INFORMATION SOCIETY DEVELOPMENT IN MONTENEGRO 2.6 ELECTICITY IN MONTENEGRO AND COMPARISONS TO THE COUNTRIES IN THE 45 REGION 2.7 QUALITY MANAGEMENT SYSTEM AND ISO STANDARDS - GLOBAL 51 PHENOMENON OF TODAY- 2.8 THE HEALTH CARE SYSTEM OF MONTENEGRO 57 2.9 GENDER EQUALITY IN MONTENEGRO 65 2.10 LAW REGULATION IN MONTENEGRO–A STIMULUS OR BARRIER FOR 70 DEVELOPMENT OF TOURISM? 3. FOOD FOR BRAIN 74 3.1 THE PERSPECTIVE OF FREEDOM 75 3.2 THE AGONY OF THE WELFARE STATE 79 3.3 A PETITION From the Manufacturers of Candles, Tapers, Lanterns, sticks, Street Lamps, Snuffers, and Extinguishers, and from Producers of Tallow, Oil, Resin, Alcohol, and 82 Generally of Everything Connected with Lighting. Institute for Strategic Studies and Prognoses (ISSP), Podgorica, Montenegro 3 Household Survey Report #10 GRAPHS AND TABLES Graphs Graph 1.1 Participation of particular custom rates in the total custom regime before the 8 harmonization of economic relations between Serbia and Montenegro Graph 1.2 Size of enterprises included in the survey 12 Graph 1.3 Structure of enterprises included in the survey 12 Graph 1.4 Time needed for import registration 13 Graph 1.5 Time needed for import registration 13 Graph 1.6 Ranking of unnecessary import/export activity at the CBCG 14 Graph 4.1 Reason for agricultural production in the future 32 Graph 5.1 Percent of Internet users in Montenegro. Comparisons with countries in region 41 Graph 6.1 Structure of electricity bills for this winter and summer (expected) are presented 47 in the next graphic Graph 8.1 Health care capacities in Montenegro and selected countries of Europe (on 58 100,000 residents) Graph 8.2 How would you rate your own health condition? 60 Graph 8.3 Which diseases have you heard of? 60 Graph 8.4 Were you satisfied with the consultation? 61 Graph 8.5 Are you satisfied with the service you received in the Clinic Center of 62 Montenegro? Graph 9.1 Gender structure of employees in certain industries 68 Tables Table 1.1 Changes of custom rates after the harmonization of economic relations 7 Table 1.2 An overview of participation of different custom rates in Serbia and Montenegro 8 Table 1.3 An overview of the enterprises according to their activity 12 Table 4.1 Examples of indicators of the connection between poverty and the environment 35 as a consequence of incomes, safeties and sensibility of deprived person in poor counties Table 6.1 Capacities, production and consumption of electricity in the countries of the 49 region, 2001 Table 6.2 Energy resources in the region 50 Table 6.3 External costs for electricity production in the EU (in EUROcent/kWh) 50 Table 8.1 Public health care staff in Montenegro, according to last register December 31, 58 2001 Table 8.2 Primary vital indicators for the years 1991, 2000, and 2001 59 Table 9.1 Education level of head of household structured by gender 66 Table 9.2 Monthly net income by level of education 69 4 October 2004 Household Survey Report #10 Boxes Box 1.1 Chronology 8 Box 1.2 Import customs procedure 10 Box 4.1 Plague of the fish in Tara 33 Box 6.1. Tariffs 48 Box 7.1 For better understanding of ISO standard 9000:2001 53 Box 9.1 Legal conditions for applying for Family Material Support (FMS) 66 Pictures Picture 7.1 Model of ISO 9000:2000 operation 52 Picture 7.2 Model of ISO 14000 operation 55 Institute for Strategic Studies and Prognoses (ISSP), Podgorica, Montenegro 5 Household Survey Report #10 1. INTRODUCTION Dear Readers, We are very pleased to present the tenth Household Survey Report in Montenegro. In this volume we present a standard analysis of specific problems like: customs procedure, grey economy, sustainable tourism in Montenegro, links between poverty and environment, information society development, electricity issues, health, quality management, etc. Essays were also prepared, which, in our opinion, stimulate thinking. Focus of the essays is on the state and its role in the economy and concept of economic freedom. A chapter from Amartya Sen’s book Development as Freedom was reprinted, as well as the article about welfare state written by Ludvig von Mises and titled “The Agony of the Welfare State”. The third article is written by Frederic Bastiat and well known as “A petition from the Manufacturers of candles, Tapers, Lanterns, sticks, Street Lamps, Snuffers, and Extinquishers, and from producers of Tallow, Oil, Resin, Alcohol, and Generally of Everything Connected with Ligthening” which puts an interesting and funny light on state interventionism. The report in front of you is one more concrete contribution of ISSP in the elimination of the arbitrary evaluation of socio-economical indicators. Our task is to improve problem understanding, and never use acute criticism. Through collecting, processing and analyzing the data on households in Montenegro in last more then three years, the ISSP has provided a clearer understanding of the socio-economic situation in Montenegro. We believe that we can achieve more and that quality can be improved. By doing this, we will be in a position to better understand the problems we face. Staying on the surface will not help. If you have comments or suggestions, feel free to contact us. Our aim still remains the same: continuous quality
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