Radovan Jelašić: Serbia's individuals and institutions - adapting to become
transition winners
Speech by Mr Radovan Jelašić, Governor of the National Bank of Serbia, on the occasion of the
50th Anniversary of Čačanska Banka, Čačat, 23 September 2006.
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Today, Čačanska banka celebrates its 50th anniversary. It does so in the ever-changing climate of
transition, in which each citizen of Serbia is faced with a range of vital questions - transition to where,
in what manner and at what pace? And whereas all of us understand transition in our own way, I for
one believe that transition means entering a new system of economic, social and moral values, and
that only those who understand what the new times bring, and who manage to adapt quickly, will at
least avoid being transition losers, if they do not become transition winners - and this holds true for
both individuals and institutions.
It is enough to look into the share of state, social and private capital in the portfolio of your bank to
understand how far-reaching and inevitable these changes have been. Another significant change is
that membership in the Board of Directors of this bank is no longer motivated by the wish to obtain
credit under preferential terms, but by a wish to see the institution's profits and value of its shares go
up. Not to mention risk management, credit approval procedures, internal controls, etc.
Although this was scarcely noticed, let alone appreciated, by most of the public, the restructuring of
the banking system brought about a change in many aspects of our relationship with banks: for
instance, instead of having to telephone the bank several times a day in order to check our account
balance, we now get an account statement via our cell phones; instead of complaining of short supply
of credits, we now complain that "credits are too expensive". We also have a stable currency, and
although foreigners still place more trust in it than some of our own citizens, I am certain that this too
will change in due course.
Of course, in order for any change to happen, there must be people who know what they can and
cannot do alone, and who ask for help in order to be able to tackle the challenges ahead. This is how
the European Bank for Reconstruction and Development acquired a stake in Čačanska banka. If there
is one thing I appreciate in Serbia, it is when people ask for help, when they admit they cannot carry
on on their own. This is the first, if not the most important, step towards success. At times I even ask
myself: How is it possible that Serbia has not outstripped Switzerland long ago, when it has so many
professing "experts" and "know-alls" who can tell you all about future developments in exchange rate
and policy and economy long before they have even happened?!
As regards the speed of transition, each citizen should decide on their own whether they are happy
with its present pace or not. One thing, however, is sure: being in transition is like being on a plane - if
engines stop, even for a minute, the plane will crash, whatever its speed! And an absurd thing about
transition is that, while it lasts, problems need to be addressed by stepping things up, and not by
slowing down.
I have just returned from Singapore, where I attended the Annual Meetings of the IMF and the World
Bank Group, and I would like to share with you the positive impressions from my stay in a city strewn
with a multitude of billboards assuring visitors that they will be greeted by "4 million smiling faces of
Singaporeans." And it really was so.
The difference between Singapore and Serbia lies not only in the fact that their per capita GDP is USD
30,000 and ours only USD 3,500, but also in the fact that the 7.5 million of our citizens do not only
show very little optimism, if any, but some of them still live in the past. The difference, as I said, is not
only in the smile, or absence of it, but in an unlimited optimism, social energy and self-confidence that
Singaporeans display! I believe that we already have sufficient reasons to be satisfied more often, not
only on important occasions, such as this, the 50th anniversary of Čačanska banka, but also each time
we succeed, in either private or business life. But in order for Serbia to change, we must, each of us,
change first. And this is the most difficult part of transition, which I myself, at the age of 38, still find
hard to do!