Posts Tagged ‘Catholic Church’

4th edition of my book, Slovenia 1945, due to be published shortly

March 3, 2015

 

Chosen as Book of the Year by John Bayley, who compared the characters to those of War and Peace. New preface includes British Government expression of regret for the events described in the book. Co-author is John Corsellis.

www.ibtauris.com

Slovenia 1945 Inside OK

Advertisements

SLOVENIA: FALLEN ANGEL OF EX-COMMUNIST EUROPE

December 21, 2013

Spik 2013

In the days of Communist Yugoslavia, Slovenes stood out for being in touch with the West and capable of generating a large proportion of the country’s GDP. Independent since 1991, Slovenia quickly qualified for the European Union, the euro and Schengen.

Yet now it counts with Greece, Cyprus and Spain among the eurozone’s worst financial miscreants. Its main state-owned banks are in dire need of bailouts. As auditors pick through the books, they discover loan after reckless loan for dud projects run by political cronies and personal business friends, secured by precious little.

Governance of the banks is revealed as irresponsible, slack and amateurish. Even the Catholic Church is saddled with large bankrupt businesses which are anything but spiritual. Pope Francis has removed the Archbishop of Ljubljana and the Bishop of Maribor. So much for Slovenes’ reputation for economic competence.

Now the government is starting to bail out the banks. Eager to cling to the independence gained only in 1991, it refused to apply for a bailout from the EU and the IMF, which would have meant foreign supervision. In order to preserve a minimum of international credibility, it reluctantly brought in foreign consultants to inspect the books.

As a result, it embarrassingly turns out that the government needs to put in 4.8 billion euro, four times the amount it originally calculated.

Moreover, EU rules on state aid oblige it to sell its number two and three banks, as well as 75% of the largest. The best hope that the Slovenian Central Bank governor could voice was that foreign buyers (there are no domestic candidates) will sort out the governance mess.

Slovenia has escaped bailout tutelage by the EU and the IMF, but the cost of going it alone will be huge for the Slovene people.

In hindsight, it is clear Slovenes were too complacent because of their success in Communist Yugoslavia. Their capabilities proved inadequate for an open modern economy. Whereas Poland privatised quickly in the earlier 1990s – and got through the recent financial crisis unscathed – in Slovenia, the state still owns half the economy.

So anxious were Slovenes to preserve their independence that they did their utmost to keep out foreign investors. This can now be seen as a damaging fantasy.

One exception is Lek, one of the country’s largest companies, which was bought by Novartis. Its procedures were radically overhauled at the insistence of the Swiss. Now it is solidly implanted in the group as a leading producer of generic pharmaceuticals. At a time when Slovenia’s GDP is falling precipitously, Lek is hiring not firing.

Moral number 1: ex-Communist states of Eastern Europe, even Slovenia, underestimated how much they need to change to adapt to the modern world.

Moral number 2: Slovenia now needs the national unity which won it independence in a 10-day war in 1991. In view of the vicious infighting which pervades its politics, this however seems unlikely.

Its outlook unfortunately is grim.

– Marcus Ferrar is co-author (with John Corsellis) of Slovenia 1945: Memories of Death And Survival After World War II.

Pope’s resignation will re-energise Roman Catholic Church

February 12, 2013

Pope Benedict XVI at one time admitted that he had no talent for administration or management. That is why he resigned. He saw how the Church already became disorganised in the declining years of Pope John Paul II. But his own qualities lay in theological thought and reflection. Under his reign, there were new gaffes and missteps which a better manager could perhaps have avoided. It is to his credit that he openly recognised his incapacity yesterday and drew the consequences.

The Cardinals are likely to learn the lesson, and choose a new Pope who can get a grip on affairs more effectively. He will doubtless be just as conservative in matters of doctrine, since most of the Cardinals were handpicked by Benedict XVI and his predecessor. But he is likely to be better at managing. The outcome will be dynamising and the Roman Catholic Church may come to appear more modern.

The Church of England just went through the same process. The last Archbishop was a learned and likeable personality, but lost control and his Church suffered. The new Archbishop of Canterbury, Justin Welby, is a former oil business executive with experience in finance. He too is clearly expected to be a better manager.

So, Faith is not enough. Material obsessions no, but worldly organisational talents: yes please.


%d bloggers like this: