Nothing can be further from the truth. The West – notably the USA – is in the habit of creating pairs of villains and heroes, monsters and saints where there are none. It provides for good soundbites, it raises the fighting spirits at home and it focuses attention and energy on the enemy. Very often, the spin-doctors are caught in their own whirlwind and with them – if they happen to be American – the rest of the world. Shrewd villagers such as all Balkan politicians are, have caught on to this self-delusion. They pose as democrats, autocrats, strong men, underdogs – anything to get Western aid and investment flowing. It is currently very fashionable and expedient to be a democrat – so Mr. Djukanovic is a democrat. And the West duly delivers the goods: international recognition, money, and political support.
Milka Tadic is the Editor of the popular (and, as you will see, independent) Montenegrin magazine "Monitor". This week, she wrote about Djukanovich (in "Currency Wars", in IWPR number 63):
"Whenever Djukanovic, then Montenegro's Prime Minister, demanded economic liberalization and more economic independence, Milosevic would close the border and block trade between Serbia and Montenegro. In retaliation, Djukanovic opened Montenegro's borders with Italy, to cigarette smuggling, and with Albania, for oil imports. Djukanovic also liberalized the import of foreign, second-hand cars – many of them stolen vehicles from Western Europe that Montenegrins bought from the Bosnian-Croat mafia, in border towns in Bosnia. Taxes from imported cars, the smuggling of cigarettes and oil, provided Djukanovic with the hard currency to replenish the republic's coffers and begin to chart an independent course away from Belgrade. In economic terms, this tiny republic was becoming less and less dependent on its partner in the Yugoslav federation. ... As NATO launched its bombing campaign, the Yugoslav Army took over control of the Montenegrin border crossings and custom posts, banning even the entrance of humanitarian aid; speed boats smuggling cigarettes between Montenegro and Italy could no longer break the blockade; and the border with Albania was also closed. Djukanovic was facing economic disaster and was only saved by the end of the war, since when Montenegro has resumed its dubious trade with its neighbours."
Hence the love affair with the West.
Human vice is the most certain thing after death and taxes, to paraphrase Benjamin Franklin. The only variety of economic activity, which will surely survive even a nuclear holocaust, is bound to be crime. Prostitution, gambling, drugs and, in general, expressly illegal activities generate c. 400 billion USD annually to their perpetrators, thus making crime the third biggest industry on Earth (after the medical and pharmaceutical industries).
Many of the so-called Economies in Transition and of HPICs (Highly Indebted Poor Countries) do resemble post-nuclear-holocaust ashes. GDPs in most of these economies either tumbled nominally or in real terms by more than 60% in the space of less than a decade. The average monthly salary is the equivalent of the average daily salary of the German industrial worker. The GDP per capita – with very few notable exceptions – is around 20% of the EU's average. These are the telltale overt signs of a comprehensive collapse of the infrastructure and of the export and internal markets. Mountains of internal debt, sky-high interest rates, cronyism, other forms of corruption, environmental, urban and rural dilapidation – characterize these economies.
Into this vacuum – the interregnum between centrally planned and free market economies – crept crime. In most of these countries criminals run at least half the economy, are part of the governing elites (influencing them behind the scenes through money contributions, outright bribes, or blackmail) and – through the mechanism of money laundering – infiltrate slowly the legitimate economy.
What gives crime the edge, the competitive advantage versus the older, ostensibly better established elites?
The free market does. Criminals are much better equipped to deal with the onslaught of this new conceptual beast, the mechanism of the market, than most other economic players in these tattered economies are.
Criminals, by the very nature of their vocation, were always private entrepreneurs. They were never state owned or subjected to any kind of central planning. Thus, they became the only group in society that was not corrupted by these un-natural inventions. They invested their own capital in small to medium size enterprises and ran them later as any American manager would have done. To a large extent the criminals, single handedly, created a private sector in these derelict economies.