The Macedonian Stock Exchange (MSE) is not in service productively. True, some of the parameter which we use to calculate the success of a stock exchange have lately better in the MSE. For example, the monthly money volume has increased jointly with the number of dealings. But this is a far cry from achievement.
Who is to responsibility? Is the current organization of the MSE useless?
I do not think so. in fact, I think the MSE has an excellent management team, doing their best to slot in new trading technique and to list new firms.
A stock exchange is a very significant financial market. It is a highly well-organized and visible tool of financing. In the West, it is used to finance most of the needs of corporation, way above financing obtainable from banks. persons and firms save some of their income and invest it. The stock exchange is meeting basis for savers wishing to invest their investments - and firms looking for investments.
Another function of stock exchanges is to assist government in finance their internal borrowing supplies. Governments sell obligation (called bonds) to investors through the stock exchanges in their country. A stock exchange is, therefore, an crucial tool for re-financing nationwide debt.
But a few circumstances must prevail before a stock exchange functions correctly.
The most significant condition is the existence of a fit, growing economy in the stock connections country. Investors flock to healthy economies and shy away from unhealthy ones.
On the face of it, the Macedonian economy belongs to the latter category. High being without a job, low savings, retarded growth, a gaping trade and payments deficit. But this is an visual illusion. The economy is in much better conditions that most Macedonians would care to admit. The unemployment figures are skewed. They reflect efforts to evade paying social taxes - not real unemployment. The economy is growing, even by official estimates. The black economy is rising even faster. The deficits are covered by enormous capital infusions from donor countries. Macedonia is receiving more international credits per capita than Russia. It is always suitable to blame the deterioration economic climate - but the cold, objective figures do not bear this out.
When an economy is growing - the profits of company (counting those listed in the MSE) will grow with it. This makes the shares of these company an interesting pay money for.
Since no one is trade - we must look for the problem somewhere else.
A prospering stock exchange is linked to the survival of the right micro and macro economic management. Macedonia has more than its share of troubles in this respect.
The process of alteration of businesses with social assets had four basic flaws:
first, it introduce no new organization, ideas or capital to the stressed firms which were "distorted". The market simply does not believe that they were transformed. The same people run the same shows under a different hat.
Second, such alteration violates the concept of Hierarchy, a chain of command.
It blurs the difference between labour (workers) and capital (owners). What is mistaken with that is that a ship must have a captain - and only one. somebody must have the authority and the responsibility. Collective management is no management at all.
Moreover, innovation change and renewal are all prevented. What change could come from the same set of worn out managers? How can thousands of owners decide to worsen the conditions of the workforce - if owners and laborers are one and the same? So, organization is polluted by irrelevant, non-economic considerations: power struggles amongst groups of workers, social consideration and following ones.