Lisbon: Address of the Prime Minister of the Republic of Montenegro Milo Djukanović at the Microsoft Government Leaders Forum

MILO DJUKANOVIĆ, PRIME MINISTER OF THE REPUBLIC OF MONTENEGRO

The Microsoft Government Leaders Forum Europe:
Driving Global Competitiveness through Local Innovation

Ladies and Gentlemen,

I am grateful for the invitation to address this prestigious Forum on a theme that is indeed global and of interest to all, which calls for a joint action to meet economic and social challenges that we are facing across Europe. Allow me to focus my views on the Western Balkan region from which I come - on key reforms and activities required so that we can achieve stronger economic growth, improve competitiveness and create more and better jobs and in general improve the living standards of our citizens. And this is, indeed, the ultimate goal of all that the Government is doing.

Over the past period all the countries of the region have achieved an enviable progress in reforming the entire system, in macroeconomic consolidation and cooperation and in building mutual ties. In the Montenegrin case this is demonstrated not only by a constant trend of growth of the GDP, but also by positive changes in its structure. Also by falling unemployment. Inflation and budget deficit were already in 2004 within the range permitted for the euro zone, with a downward trend at the close of the last year the inflation was 1.8% and the Central Budget deficit was 15% of the GDP. We are now shifting the focus of our activities from macroeconomic stability to economic development.

Taking a look at the experience of EU countries we can see that innovation and entrepreneurship have been instrumental in achieving productivity and competitiveness. Therefore we have to create an environment that enables all enterprises regardless of their size to exploit their entrepreneurial and innovative potential. And also to have easier access to technologies they need, to knowledge and finance because it is enterprises, not policy-makers that are of critical importance to innovation. They mobilize other enterprises and identify and develop new market opportunities. This is especially important given the ongoing process of globalization and of rapid technological changes (in particular in the field of information and communication technology) with increasingly tough international competition, which calls for fast responses to the growing changes and needs of consumers.

Recognizing such a role for innovation and business we in Montenegro are focusing on building adequate frameworks and policies. And the necessary infrastructure and ancillary services. We are building new and enhancing the effectiveness of the existing institutions to improve the efficiency of the system and its ability to meet the needs of the citizens, of business and the society as a whole. The role of the state as we understand it is to stimulate and support creative and innovative potential of enterprises through an appropriate regulatory framework and not to replace or steer them.

Also, recognizing the importance of information and communication technologies for development of a knowledge-based society in June 2004 Government has adopted the Information Society Development Strategy and the Action Plan for its implementation. These strategic documents rely upon the recommendations of the Lisbon Summit of the EU, eEurope + 2003, eEurope 2005, as well as other relevant recommendations of the EU and the Stability Pact for Southeast Europe. In addition to this, we have formed an Information Society Development Council chaired by the Prime Minister and with participation by the Rector of the University and deans of faculties involving ICT studies, as well as local and international experts, representatives of the civil society and companies in the field of ICT. We devote continuous attention to development of public and private partnership.

We have also prepared a Strategy of Development of Electronic Communications. And we have been implementing deregulation and demonopolization of the market and undertaking activities with a view to meeting our commitments under the Memorandum of Understanding on development of a single market of broad-band networks completely connected with the European and Global Network, which we have signed in Thessaloniki in July last year.

We have defined key priorities of e-Government until 2008, such as:
- Implementation of the legislative regulations
- Linking all government and local government bodies into a single and secure broad-band Internet network
- Connecting educational and health institutions to the Internet,
- Putting into operation public access points in all places in Montenegro with more than 500 inhabitants
- Setting up Information Systems for most administrative procedures at the national and local level.
- Setting up an information system to service needs of tourism and culture.
We are conscious that this is a complex task and a huge challenge, but we are committed to making, through an alliance with strategic partners, all the necessary changes that will make Montenegro one of those European states that deliver efficient services to citizens, business and the society as a whole. In this light I regard as very important the Strategic Partnership Agreement that the Government of the Republic of Montenegro has signed with Microsoft last year. It will enable transfer of knowledge and training programmes in ICT. It will also enable continuous development of digital literacy in educational institutions, additional education in enforcing regulations in the field of protection of intellectual property and, on the whole, familiarization with and implementation of ''good practices''.

We are conscious of the role of the educational system in developing of individual and overall capacity for functioning in increasingly competitive and complex conditions that call for a high amount of innovation and ability for change. In Montenegro private initiative is increasingly present in the field of education, too. Private elementary and high schools are being established, as well as business schools and colleges. I believe that in this field, too, competition will contribute to making better the overall educational system.

We are also conducting activities with a view to organizing at the University of Montenegro postgraduate studies in e-health and e-government.

In this way we are creating a new product that we can export and that is knowledge.

I believe that the above shows commitment and seriousness of the Government in getting to grips with problems that shape the future of the society. Because today to have good human resources means to have a population that is well-educated and capable of managing modern challenges and changes in an economy and a knowledge-based society. Only economies that create new products and adapt to market requirements can achieve fast development. This is supported by successes of seemingly small economies like those of Luxembourg, Malta, Cyprus, Estonia, etc.

Thank you for your attention.

Lisbon, February 1, 2006.