Am I rich? Serbian Hyperinflation of the 1990’s

 

With all of the talk of the global economy and media buzz about the global recession, I was very curious to learn more this denomination of Yugoslavian currency I bought at a market in Belgrade.

The bank note is real and it was issued in 1993 at the height of the hyperinflation during the chaotic times of the breakup of Yugoslavia. It was the largest denomination of the ex-Yugoslavia and nominally worth 500 billion (US terms) dinara. At the time, it was virtually worthless by the time it was printed and released to the public.

I thought I had lived through tough economic times the past 6 years in Venezuela under the economy destroying policies of President Chavez. But the 30+% annual inflation and currency exchange controls pale in comparison to the craziness of 1990’s Belgrade. A bit of background…

When Yugoslavia was breaking up into the separate nations of Croatia, Slovenia, Macedonia, and Serbia, it not only generated political chaos, but economic chaos. The economic output of Yugoslavia dropped 70% from 1990 to 1994. The government tried to compensate by printing more money and passing laws making it illegal for businesses to lay off employees. On top of this were the war and UN sanctions making it more difficult manage the economy. The result was an inflation rate that peaked at 313,563,558 % per month which comes to 851 with 78 zeros behind it. Amazingly, this was not the highest inflation ever! In neighboring Hungary during WWII, they had an inflationary rate of 4.16 trillion per month and they also had the largest bank note. Serbia does have the record for the longest sustained hyper inflation. 

As you might have guessed, this made people’s lives very difficult during this time. People survived through a variety of creative measures. Thankfully, Serbia has rich soils and most people have relatives living in the countryside to feed their extended families. Eventually, the Dinar died as a currency and was replaced by the German Deutschmark. Today, Serbia has an inflation rate of around 10% and a stable Dinar currency. Tim Judah, in his book “The Serbs: History, Myth & Destruction of Yugoslavia” has an excellent detailed description of this time in Serbian history. 

Pictured on the front of the note is the Serbian poet, Jovan Jovanović. He lived in the late 1800’s – early 1900’s and was born in Novi Sad. He is famous for his children’s poetry. Below is an example of one his poems,

DARKNESS

You could think that darkness 
is so scary strong, 
powerful and dreadful, 
and–you would be wrong.

Fortunately, it is 
not at all this way: 
You just light a candle 
and it runs away.

Jovan Jovanović Zmaj 
Translation: Dragana Konstantinović

Another translated poem can be found on Dragana’s website. On the reverse side, pictured below, is the Serbian National Library. The library is still open today and is located next to Saint Sava’s Cathedral in downtown Belgrade. 

Ollie and Ocean with the Čuvarkuća

 

 


A shopkeeper at the paint store gave Oliver a Serbian Easter egg! It is one of the Serbian Easter traditions and I love following the local customs. It is one of the nice things about living in other countries. The Serbs keep one of the Easter eggs, called the čuvarkuća in their homes for the entire year until next Easter. It is supposed to protect the home. The translation is čuvar means guard/watchman/keeper and kuća means home. 

Ollie carefully handed it to me and we put it on a shelf in the kitchen. We’ll see if it makes it the entire year. 

Family Journal: April 21, 2009

My dad and brother Andy are extremely handy with their hands. Both of them are excellent carpenters, electricians, plumbing, etc. I am not quite so handy and like to blame my genetics and scenes like this above.

Yesterday, our head of maintenance Goran and his crew came over to the house yesterday to do a few odd jobs. They reinforced one of our benches in our outdoor furniture and then took down this unused satellite dish that has been sitting in our yard for years. It was attached to our fence and quite an eyesore.

The school treats its expat employees extremely well. The maintenance crew has done much work in our house this year. They have re-wired our kitchen and outdoor lights, repaired our telephone outlet, moved a big couch, etc. All we need to do is complete a web-based form work request and they are there the next day. We appreciate their care, and it allows us to focus on school work rather than house work. It is one of the advantages of living overseas. Nadia and I have greatly benefited from having help with domestic chores such as cleaning, washing clothes, shopping, cooking, etc. All of our utility bills are paid for, etc. It really frees up time to maintain a blog, spend more time with the kids, reading, etc.

I have pledged to get better at home upkeep and repair. I recently fixed an extension cord and bought an adjustable wrench! Yes, small steps compared to what my dad and brother can do, But, I am using the wrench quite often and see that a good tool kit is essential. I plan on my dad consulting me this summer on the perfect tool kit. I see the need to learn how to drill a hole to hang stuff or put up shelves, to repair cabinets with wood glue or screws,

We are relishing the time off from work. Yesterday Nadia and I went for a run together around the lake at Ada Ciganlija. We then played soccer, basketball, and ate lunch outside in the yard. In the late afternoon, we went to the US Embassy Commissary for shopping. We also went down to the pijaca “Zeleni Venac” which in English is the Green Circle Market to get our watches repaired and buy some flowers for the garden we are making.

Today, April 22, marks the one year anniversary of my blog, billkralovec.com. I did 250 posts this year! I renewed my subscription to wordpress.com and will continue the domain name for another year.

Family Journal: April 20, 2009

We started our week of holiday at home. For Nadia and I it truly is a holiday as we can use the nanny and our resources at home to relax. Sometimes, traveling with young children is more work than our jobs.

Yesterday Owen and I started the day with a run around the lake at Ada Ciganlija. We went shopping in the afternoon for summer things, like an outdoor broom, sprinkler, etc. We had a nice picnic in the grass and in the evening, Nadia prepared a good meal of pasta and we had a fire.

Owen and Ollie Enjoy Ice Cream In Front of the Fire
Owen and Ollie Enjoy Ice Cream In Front of the Fire

Ollie and Owen are shown above playing a game of egg-tapping. This is a Serbian Easter tradition. Serbs boil eggs with onion skins to produce a nice, burgundy color. Many paint intricate designs on the eggs. Vera brought over some eggs she made yesterday. We played the egg tapping game where opponents tap the top of the eggs together. The egg that does not crack wins. In a family competition, Oliver had the strongest egg and won!

Ollie is tierno with Mama
Ollie is "tierno" with Mama

Family Journal: Easter Sunday Lunch

Sunday Lunch, originally uploaded by bill kralovec.

We discovered a really nice place for lunch yesterday. We visited Salaš 137 just outside of Čenje, a small village near Serbia’s second city of Novi Sad. Salaš, pronounced, salash, is the Serbian for country ranch. These places often have a restaurant, country museum, and activities for kids. This particular salaš was particularly nice, a perfect place to take the family.

The boys take a break from soccer.
The boys take a break from soccer.

I spent the morning doing yard work and playing with the kids. I managed to take Ocean for a run in the jogging stroller, I was definitely feeling the Belgrade marathon in my legs. We finally got the kids and car packed and left for ranch in the afternoon. It was warm and overcast, perfect weather! The food was traditional Serbian cuisine. We ordered the house specialty, lamb, as well as salads, potato dishes, roasted vegetables, and the special Serbian “gutbomb” of chicken wrapped in bacon and filled with cheese.

Ocean on the Teeter-Totter
Ocean on the Teeter-Totter

The ranch was recommended by various mothers in the ISB community and thanks to them. The ranch also had a huge soccer field and playground. Perfect for three hyperactive kids waiting to eat. We also went on a horse ride in a cart around the property. Cenje is in the heart of Vojvodina, the northern part of Serbia. Vojvodina is an rich agricultural area, flat as a pancake. It looks like Iowa.

I highly recommend the place for a weekend afternoon get-a-way. They also have a hotel for longer stays. The ranch is located just north of Novi Sad, about 90 kilometers away from Belgrade. If you type in Čenje into a GPS, it will take you to right to the place. For more information, you can visit their web site.

We Did It! : Belgrade Marathon 2009

 

Ready to Go!
Ready to Go!

 

Nadia and I had a wonderful run in the 22nd Belgrade Marathon yesterday. One could feel the excitement as the gun went off to announce the start of the race. Thousands of runners shouted and raised their hands as we moved in unison up Queen Aleksandra Street. It was a thrilling rush to be part of such a mob activity. There were people cheering and watching along most of the route. The sunny skies and cool (70 F) temperatures made for beautiful sites and nice running conditions. 

We decided to run together instead of me chasing the Kenyans. Below is as close as I got to the elite runners. They swepts the top spots as expected. We ran 15 kilometers, the most we have ever done together in a time of 1 hour and 38 minutes. Vera our nanny watched the kids at home so Nadia and I treated it as a running date again. The views of the city were spectacular, such as the shot I took from Branko’s Bridge below.

 

 

I Am Trying to Pscyhe Out the Kenyans
I Am Trying to Pscyhe Out the Kenyans

 

The first 5 kilomters on the old side of Belgrade, south of the Sava River went by extremely quickly. The next 10 kilometers were the tough part as we crossed the bridge into New Belgrade. The nice thing about New Belgrade is that it is former swampland that Tito’s socialists developed and it is completely flat. We ran along the Danube all the way to Zemun and then separated from the marathon course at the 10 kilometer mark. We then finished the last 5 kilometers by crossing the main high way overpass near the Mercator Shopping Center. 

 

The View from Brankov Most
The View from Brankov Most

 Nadia had the best orange juice she ever drank immediately after we stopped. We then luckily found a taxi near the highway and we were back home in 5 minutes. We both pledged to train more next spring and run the half marathon (21 kilometers). 

After the race, I was extremely tired and as I write this my legs are still a bit sore. I’ll go out for a run this morning with Ocean as soon as she wakes up. We took the kids to McDonald’s and played in the yard for the rest of the afternoon. Nadia made a nice risotto and then we went for a walk for ice cream. Belgrade reminds me of Michigan summertime right now. 

We are beginning our Spring Break and have the next week off of school. The Orthodox Christian Easter is today and so we have our break later than most countries. 

 

Survived! Ready for the 21 kilometers in 2010!
Survived! Ready for the 21 kilometers in 2010!

 

 

 

 

 

 

Bring On the Kenyans!!! Belgrade Marathon 2009

 

  

Registration, originally uploaded by bill kralovec.

Nadia and I are shown above after registering for the 2009 “Banca Intensa” Belgrade Marathon. This is the 22nd edition of one of the biggest sporting events in Serbia. This is the first that the Kralovec family will be participating. We will be representing our countries (Australia & USA) against the best in the world.

There are four races actually today. There is the marathon, a half marathon, and the UNICEF 5 km fun run. Within the marathon, there is the military world marathon championship, with soldiers from all over the world participating.

Nadia and I, being “serious” runners, signed up for the half marathon. Nadia was the 701rst woman to register. I was too busy soothing Oliver to find out what number I was. We bought the boys UNICEF shirts so they could feel they were getting a t-shirt and registering for a run also.

My race strategy will be to focus on the list below. Hey Mathew Cheboi, if you are reading this, I’m gunning for you! I’ll find his number (701), get next to him, and then run with him until the last 5 kilometers where I intend to pull away. Then if I am feeling good, I’ll keep going and maybe take on some of the guys in the marathon. I can’t believe that I wasn’t on the list below. 

Seriously, Nadia and I intend to run 10 kilometers together and then quietly step off the course. We have not been training much. I don’t know how much my 41 year old body can do with exactly 3 training runs behind a jogging stroller. Being an international school principal and have three children under the age of 6 really cuts into training time! If I am feeling good, I’ll go on and finish the second half of the half marathon and do another 11 kilometers. 

 

Where is Bill Kralovec USA?
Where is Bill Kralovec USA?

This is our first really big race. We have run in lots of 10 kilometer races back in Michigan, as well as the annual Guacamaya “Run For The Earth Fun Run,” but never have we done a city marathon with thousands of participants. I wonder how far away from the Kenyans I’ll be when we start off?

My main goals are to enjoy time with my wife, get some exercise, and enjoy the sights of the city. We start in front of national parliament and get to run across the bridge to New Belgrade and back. We are three hours from race time as I write this. I’ll let you know how it turns out. I have Oliver and Owen convinced that I am going to win. 

 

 

 

Will I see this?
Will I see this?

Gypsies in Belgrade

Above is a photo I took last weekend. We were on the way to an open market in New Belgrade. We stopped at the traffic light, and these three gypsies were asking for handouts from cars waiting in line. At the major intersections downtown and in New Belgrade, it is common to have gypsy beggars or window washers. It has been a source of fascination for our family since our arrival. This is my second post (for my first post, click here) on the gypsies and I intend to do more while I am living here.

I recently finished reading Isabel Fonseca’s excellent book, “Bury Me Standing: The Gypsies and Their Journey” in which she writes of her experiences of living with the Romany people of several Eastern European countries for 4 years.

There are over 100,000 gypsies living in Belgrade. They are an on-going social problem in the city. They get little support from the government and have difficulty integrating themselves into modern, Serbian society. The latest news was the government moving (bulldozing) of a settlement in New Belgrade. It seems that no one wants them to live in their neighborhood. There are gypsies that are successful, but most are extremely poor and outside of normal society. Beside hustling for money at intersections, they are also seen collecting cardboard and other recyclable materials or selling junk at markets in New Belgrade.

They remind me of the Aboriginal people of Australia. They have their completely separate culture and lifestyle living right next to a majority “Western” culture. They are closer to the North American Indians, and are more integrated than the Aboriginals, but the same view applies. Like the Slavs, the migrated to Serbia from the east. Researchers discovered they originally came from India, leaving about 16-20 generations ago (approximately 12th century). They stopped in central Asia (Armenia) and reached Serbia and eastern Europe in the 14th and 15th centuries. Their official name possibly dates back to their original caste in India. Fragments of their Indian origin are maintained today in many words in their language and their Hindu-like customs of cleanliness and superstition.

Their original nomadic lifestyle has ended in modern times.  Today they are mostly poor, illiterate, living on the edges of cities and towns. There are an estimated 6 -11 million gypsies world wide with most in Eastern Europe. The biggest population is in Romania. Fonseca reasons they were used as slaves in historical Romania and that explains the high numbers there. They have been persecuted since their arrival to Europe. They are the forgotten part of the Holocaust.

The girl above is probably the mother of the baby in her arms. Gypsies have their own cultural norms and one of them is to become a mother as soon as physically possible. What is amazing is many are illiterate with no concept of history, time, and Western cultural literacy.

Ocean is up and I need to attend to her. I’ll be writing more in the near future…

Below are some excerpts from the Rom News Network a website based in Germany that produces news items about the Romany people. I took the excerpts from an article by Olga Nikolic, called, “Life on the Margins of Society” from 2001.

“Romanies form the youngest portion of the population in Serbia – over a half, 62 per cent of them, are under the age of 25, while only 4,1 per cent of them are over 60 years-old. The said age structure is accounted for by experts as the result of high birth and death rates and a low average life expectancy. According to some statistics, the average Romany life span is 10 per cent shorter than is the case when all other citizens of Serbia

Dragoljub Atanackovic, the president of the Romany Congressional Party, claims that 90 per cent of Romanies live in extremely insanitary conditions and that in Belgrade itself there are 60 enclaves with over 90 thousand Romanies living in wretched circumstances. “The social position of Romanies is exceptionally difficult. But three per cent of the population of working age are employed, only 31 per cent have primary school education, the rest are half-illiterate or illiterate. We do not have a single newspaper in our mother tongue or a radio and TV program financed by the government.

According to statistics, the rate of unemployment among Romanies is four times higher than is the case with the country’s majority nation and in the past ten years the negative ratio has doubled. Every fifth Romany of working age is illiterate and every third has merely primary education. A fifth of all Romany families have no earnings whatsoever, while the majority barely survive by doing odd jobs in the black market sector, such as selling contraband cigarettes and similar smuggled goods or by collecting secondary materials.”

Happy Birthday Andy!

Andy, originally uploaded by bill kralovec.

My youngest brother celebrated his 37th birthday in style by hiking up to the magical, ancient, Incan city of Machu Picchu in Peru. He is teaching at the Cotopaxi Academy in Quito, Ecuador and during his spring break, traveled to Peru. He did the 26 mile hike in four days. Not too bad for an old man! It was mostly rain during the hike, but it cleared up when they reached  the ruins.

Andy In Front of the City
Andy In Front of the City

Macchu Pichu is in a remote location in the mountains above Cuzco, the former capital of the Incan Empire. Researchers believe that it was used as a ceremonial site, mostly for priests. It was not a main city and was not discovered by the Spaniards, but only in 1911 by British explorer Hiram Bingham. The ruins themselves are nice, but it is the surroundings that are spectacular. Nadia and I visited in 1998, but we took the train instead of earning it like Andy did.

I seem to blog much on Andy’s eating habits. He sampled the Peruvian delicacy cuy which is guinea pig. He didn’t like it, although perhaps it was the chef and not the food itself. I remember it being mostly bones and not much meat.

Andy is on the far right of the photo
Andy is on the far right of the photo

Congratulations Andy on making it and all the best for another year of health and happiness! We love you!

From Bill, Nadia, Owen, Oliver, Ocean

Family Journal: Sunday April 12, 2009

 

Owen & Ollie, originally uploaded by bill kralovec.

Owen and Ollie are pictured at the Botanical Gardens here in Belgrade. Sunday afternoon we visited the gardens with the kids. They loved the Japanese garden part of the grounds, especially the little creek. They jumped over it hundreds of times. Ocean lived up to her name, and wanted to sit in the creek.

In the morning I went for a run with Ocean while Nadia watched the kids. It was my first run in a while and I felt sluggish. I am preparing for the Belgrade Marathon this Saturday. I am not sure I can do the half marathon on 1 week’s minor training.

 

Ocean loved the Creek
Ocean loved the Creek

 

 

After the gardens we came home and I finally cut our grass. I have this little electric lawnmower that the cord was cut by workers this winter when they were fixing an electrical problem in the house. We took it down to the market and got it repaired. A very nice market indeed! I’ll do a blog post on the market in the future.

 

A Beautiful Day in Downtown Belgrade
A Beautiful Day in Downtown Belgrade