to Organize a Regional Funding Conference

We, the democratic opposition in Serbia, being aware of our responsibility for the democratic development of Serbia and the stability of SouthEast Europe in this historical moment,

taking into account horrendous economic and social consequences of the country's disintegration, civil war and ill-conducted economic policy of the government, as well as international sanctions, the country's isolation and NATO bombing campaign,

willing to invest all our political power and public influence for the peaceful resolution of the political crisis in the country and do our utmost to win the forthcoming local, parliamentary and presidential elections,

strongly committed to the necessary political and economic reforms and the country's inclusion in European integration processes,

approach the Stability Pact for SouthEast Europe with a proposal to organize

The renewal and reconstruction of Serbia favouring its return into the European community is a difficult task which a newly elected government will be unable to accomplish unless it obtains strong domestic and international support already in the first month of its mandate. In order to be effective this kind of support requires immediate preparations. An important part of this preparatory work would be a Regional Funding Conference under the auspices of the Stability Pact, to be held no later than next fall. Projects to be considered and hopefully approved at the Conference would be the infrastructure and reconstruction, as well as macroeconomic stabilization, which cannot be postponed, but have to start immediately after the new government is formed. Deposited funds would be of great assistance and encouragement to the new democratic government to persevere on a road towards political and economic reforms.

By dedicating substantial funds for stabilization, reconstruction and development of a future democratic Serbia, the international community would finally convince Serbian citizens that all of its prior activities were not aimed against them, but against the regime in power.

The public in Serbia would be conveyed a clear message that in the case of the country's democratic transformation, the citizens may expect an immediate lifting of international sanctions and substantial financial aid to projects, which would secure an increased living standard for every individual. That would incite hope for the majority of Serbian citizens, who are currently demoralized, with no vision of how to carry out the necessary change in the country.

Serbian citizens understand the politics of sanctions as a method of punishment by the international community, which has de facto strengthened the authoritarian regime, allowing it to blame the international community for all of its internal failures. The Conference would mean the adoption of a much better approach, which could lead towards a complete shift of the Serbian public opinion towards the West, encouraging the democratic forces in Serbia advocating modern democratic and market orientation.

After the "Energy for Democracy" project was successfully realized during this winter and awaiting for similar outcome of the "Asphalt for Democracy" and "Education for Democracy" projects next summer, we, democratic opposition of Serbia and international community, have proved in practice that mutual cooperation is necessary and beneficial to both parties even before the change of regime in Serbia. Scheduling the Regional Funding Conference for the Reconstruction of Post-Milosevic Serbia would bolster this cooperation further.

The Conference would discuss three types of projects:

• Financial support to macroeconomic stabilization
• Financial support to bridge budgetary gaps

• Financial support to cover the deficit in health-care and education
• Financial support to pension and social security system reform.

• Investments into international road and railroad network and reconstruction of bridges
• Reconstruction of the power transmission and main oil and gas pipelines network.

• Rehabilitation of irrigation and drainage channels (flood prevention)
• Investments in the most important infrastructure projects in major Serbian towns.

We are fully aware of the fact that the Regional Funding Conference for the Reconstruction of Post-Milosevic Serbia is basically a non-standard project within the Stability Pact for SouthEast Europe framework. Though some of its rules and mechanisms are still being developed in practice, this kind of a conference firmly requires the adoption of new standards and decisions that had no prior verification in practice. Naturally, that increases the risk of the whole project's realization and demands great efforts in decision-making.

We, therefore, take the liberty of suggesting that such a conference would be in the interest of not only the Serbian people, but also of the international community, and that it will be well worth the joint effort. The international community could thus substantially speed up the Balkan stabilization and provide for the completion of the international road network in the area. That would give impetus to economic cooperation and trade between the countries in the region and encourage the integration of this region into European political and economic institutions.

We, the democratic opposition, are confronted with great challenges at the forthcoming elections. We wish to improve our political position not only with a joint electoral strategy that has been agreed, but also with clearly expressed care for average voters and their problems. They are largely a consequence of disastrous economic situation, the country's isolation and the lack of hope that such a situation could improve. If we manage to propose a realistic and feasible program of economic changes and opening of the country to the world, we are certain that we shall obtain full voters' support at the elections. Hence, we shall gain a mandate to undertake the necessary political and economic changes, which have for years been delayed by this regime.

We, the democratic opposition in Serbia, are fully aware of high expectations by the international community. We shall do everything in our power to carry out all-inclusive reforms for the benefit of Serbia's citizens. We guarantee that the new government will be democratic and pro-European. Meanwhile, we also expect from it to do its best to secure the maximum funds from domestic resources. There is not much left, in terms of funds. The only domestic resources left are privatization proceeds. It is not usual that the funds so obtained are used for stabilization as the needs for new investments are high and the sale of enterprises takes time. We, however, have no other choice but to employ part of privatization proceeds for stabilization purposes, leaving the rest for domestic investments in economic reconstruction and public debt servicing. Privatization is therefore our great concern and a commitment to swift and efficient privatization is crucial for economic reconstruction.

Nevertheless, the first political priority for the new reformist government will be to address the issue of the fiscal deficit. That will require the change of both the current tax and public expenditure policies. Fiscal reform is a prerequisite for monetary stability and the renewal of Serbian international credibility. Once a program of fiscal reform is adopted, the government will simultaneously bring a decision about an appropriate monetary policy whereby it will seek to restore the confidence in the domestic currency - dinar.

Radical fiscal reform will demand hard political decisions for the reduction of expenditures, changing the priority in public spending and measures to increase the effectiveness of tax collection. This is a complex undertaking combining domestic investments and the struggle against corruption and the shadow economy. We, the democratic opposition of Serbia, are willing to explain the significance of these reforms to our political public. We are also ready to undertake this political risk as we deeply believe that fiscal changes within a general reform of the state and its apparatus are critical to the country's future and its speedy development.

Signatures of the Serbian democratic opposition leaders (in alphabetical order) who support a proposal to the Stability Pact for SouthEast Europe to organize a Regional Funding Conference for the Reconstruction of Post-Milosevic Serbia
NAME	PARTY/COALITION/ALLIANCE
Batić Vladan	Christian-Democratic Party of Serbia, Alliance for Change
Bošković Zoran	League of Social-Democrats of Vojvodina, Association of Democratic Parties
Čović Nebojša	Democratic Alternative, DAN Coalition
Đinđić Zoran	Democratic Party, Alliance for Change
Isakov Miodrag	Reformists of Vojvodina, Association of Democratic Parties
Ilić Velimir	New Serbia, Alliance for Change
Kasa Jožef	Reform Hungarian Democratic Party, Association of Democratic Parties
Korać Žarko	Social Democratic Union, Association of Democratic Parties
Koštunica Vojislav	Democratic Party of Serbia
Kovačević Branislav	Šumadija Coalition, Association of Democratic Parties
Ljajić Rasim	Sandjak Coalition, Association of Democratic Parties
Mićunović Dragoljub	Democratic Center, DAN Coalition
Mihajlović Dušan	New Democracy, DAN Coalition
Milovanović Dragan	Association of Free and Independent Unions, Alliance for Change
Obradović Vuk	Social Democracy
Perišić Momčilo	Movement for Democratic Serbia
Protić Milan St.	Serbian Democratic Club ODBRANA, Alliance for Change
Svilanović Goran	Civic Alliance of Serbia, Alliance for Change
Trajković Momčilo	Serbian Resistance Movement
Veselinov Dragan	VOJVODINA Coalition