By: Dr Janez Tušek, long-time university professor of mechanical engineering, editor, director, entrepreneur
In this time when the country is falling apart on all fronts, it is not difficult to write arbitrary editorials, even if it is a technical magazine. When the ruling structure sees nothing but itself and its supporters, who could be described as work-averse, all citizens who generate income, pay taxes, social security, healthcare, and contribute to the well-being of the nation should critically approach the problem and express clear positions. Here, I am mainly referring to the economy.
The most worrying aspect is that in December 2023, compared to November, industrial production in our country dropped by just over ten percent. As statistical data show, production declined throughout the key sectors last year, totalling 5.3 percent for the entire year. The decline was 4.1 percent in manufacturing, 15.7 percent in mining, 31.9 percent in the supply of electricity, gas, and steam, and so on. Concerns arise about whether the December trend of declining production will continue. Many signs from the field indicate that it will.
For those familiar with Slovenian industrial production, this is not surprising, and we are not astonished by it. Especially if we follow the actions of this government and its attitude towards the economy, particularly the industry.
There is not enough space here to list all the problems in the industry for which the current government is responsible.
I am convinced that there is no director of a company or head of an institution, either here or worldwide, who would approve the purchase of equipment or real estate without a detailed description, a purpose of meaningful use, a seller, and a detailed description of the price. The President of our government has put on the agenda of a government session a discussion about the purchase of an almost 8-million-euro building without a professional assessment by a court appraiser of this real estate, without a contract with the seller, and without a detailed description of the intended use of this building
The entire government approved this investment. Apparently, even twice. This is completely incomprehensible to any normal-thinking person, if not scandalous. However, those responsible are citing officials and their subordinates. The blame is entirely clear. It is the government or its president who approved such an investment. It is completely absurd that those who made this mistake will investigate irregularities themselves. They will not investigate who is to blame, but they will cover their tracks to save themselves.
All of us who lead companies know how carefully investments must be made, how each investment must be carefully examined, how optimal equipment must be sought, how to negotiate the price, and above all, how to incorporate depreciation into each investment, that is, how the investment will return the invested money.
ON THE ECONOMIC FREEDOM INDEX, CONDUCTED EVERY YEAR BY THE AMERICAN HERITAGE FOUNDATION, WE FELL FIVE PLACES IN ONE YEAR (2023).
In the vast majority of companies, regardless of size, every purchase of a new computer requires a description of the need, purpose of use, location, user, and description of the operating system with all necessary programmes. However, someone in the government, who thinks they are all-powerful, buys 13,000 computers that are allegedly unusable, for which it is not known who will use them and for what purposes. The price of these impoverished computers is also important, which have been sitting in the warehouse for half a year, which no one has pointed out yet.
Even small craftsmen or farmers, often without specific economic education, would not engage in such foolish investments as those carried out by this government.
The state tender for non-governmental organisations in January of this year, totalling almost seven million euros, is a real disaster. Does anyone ask what and when there will be any added value here and how the money will return to the state treasury?
Then we wonder why we are falling on all international comparative rankings as a country. It is not just about economic freedom or innovation. It involves more critical data, such as citizens’ safety, media freedom, the foundation of democracy, or inflation that impoverishes citizens.
On the Economic Freedom Index, conducted every year by the American Heritage Foundation, we fell five places in one year (2023). We also dropped five places on the citizens’ safety index. We are regressing on the innovation index, and we are in a poor position on the inflation index. The same applies to the competitiveness index of our country. On the international literacy comparison list of our students, we are falling. The University of Ljubljana is losing quality compared to other universities worldwide. According to various criteria, our judiciary is among the worst in Europe, and so on.
What does all this mean for our citizens and our youth?
(The column was originally published as an editorial in the technical magazine Ventil.)