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IN MEMORIAM – Franjo Žilić

A few days ago, we lost our friend, colleague, and collaborator Franjo Žilić, a long-time journalist, editor-in-chief, and director of the once-iconic Privredni vjesnik. Although he was in advanced years, he passed away unexpectedly after a short and severe illness.

In his long journalistic career, Franjo was one of the doyens of economic journalism in Croatia. He chose the journalistic profession in his early youth, specifically the most vital part – economic journalism. He began publishing his first articles in Privredni vjesnik while still a student at the Faculty of Law in Zagreb. Thus, during his studies, he chose journalism as his life calling and remained faithful to it until the end of his life. After graduating from the Faculty of Law, he became a permanent member of the editorial board of Privredni vjesnik. Very soon after, he was elected deputy editor-in-chief, and later became editor-in-chief and director of that esteemed economic newspaper. He held both of these last positions until his retirement.

Even as a retiree, in advanced age and with significantly impaired health, Franjo did not give up his lifelong love. He actively edited the magazine Perspektive, which focused on the most vital and strategic themes of our country’s development.

Privredni vjesnik, where Franjo Žilić was a journalist, editor, editor-in-chief, and director, was one of the most respected economic publications, not only in Croatia but also in significantly broader Yugoslav territories. From the very beginning, in times when writing and expressing public opinions were carefully “observed” from distant political perspectives, Privredni vjesnik, Franjo, and his colleagues were torchbearers of innovative and free ideas that contributed to the faster and healthier development of the Croatian economy and society as a whole. In this context, I will mention an interesting, almost anecdotal detail. In the first issue of Privredni vjesnik, printed in May of the distant 1953, the front page featured a headline about a visit from a group of American economists to Zagreb. Namely, ten prominent American economists held public forums across Europe, in Berlin, Frankfurt, Hamburg, Zurich, Vienna, and Paris. They spoke, of course, about the “blessings” of the free market, the need to improve trade between countries, new economic and financial relations between European countries, and other principles on which economic life in post-war Europe should be organized. The most interesting thing is that this group of economists visited Zagreb, which was then deeply entrenched behind the “iron curtain,” and held several lectures for Croatian entrepreneurs and the scientific public on the same topics.

From today’s perspective, the visit of foreign experts was not news. However, in those gloomy times, it took courage to publish such a headline. It was the era of “deep” socialism in our country. Thus, at a time when our Eastern brethren from Prague, Warsaw, Budapest, and Bucharest were not allowed, to vulgarize a bit, to “stick their noses out” from under the coat of a mustachioed dictator, Zagreb and Privredni vjesnik were, even then, somewhat shyly but bravely hinting that they belonged to something different, freer, and more humane.

Privredni vjesnik, its editor-in-chief Franjo Žilić, and his collaborators particularly demonstrated creativity in the 1990s, during the transition of the Croatian economy. In those turbulent times, Privredni vjesnik was dedicated to developing bold ideas around the privatization of the social economy, the fate of banking, and the development of the free market.

During those years, Privredni vjesnik – Franjo, his editorial team, and external collaborators launched several major projects that strategically pointed to optimal solutions in the transition of our economy. In this context, I will mention the “Ranking List of Croatian Banks,” which for the next twenty years served as an analytical block and guide on how to best transform and develop the financial sector. During the same period, a long-term project called “400 Big Ones” was realized, dedicated to showcasing the operations and transformation of large socialist enterprises into modern market corporations. Then, the well-known “Business Expectations,” initiated even before the war drama, continued to be published for many years after Croatia gained independence. I would also add that, for these occasions, a special “Conjunctural Test” was created, which analyzed the state of competitiveness and the dynamics of integrating the Croatian economy into global processes. Additionally, several practical manuals were produced, such as the “Financial Guide of Croatia,” whose three editions served all those interested in participating in the transformation of our banking system from socialist self-management to a modern, market-oriented financial model.

Based on the aforementioned long-term projects, Privredni vjesnik regularly organized large forums and discussions in professional and general public circles regarding open questions of the transition of individual sectors and the overall Croatian economy. In this way, it led the way in creating ideas on how to carry out a rational transition to a market economy, how to affirm the free market and private ownership, and implement other capital changes while preserving the achieved level of economic development, employment, and social standards. The businessman rightly opposed some unreasonable ideas that everything done in the previous system was irrational and should be destroyed. From its first pages, ideas and messages were “bursting” forth to the holders of Croatian economic policy: preserve industry, increase efforts to improve exports, do not hand over the entire banking sector to foreigners, buy Croatian, and others.

Unfortunately, practical transitional measures were often quite the opposite of these recommendations. In the transitional processes, which were often “rushed,” insufficiently prepared, and even unthoughtful, there was a serious collapse of economic development and disruptions in the structure of our economy. The results of such policies are visible today: Croatia has lost its status as an industrial country, the structure of the national economy has been significantly disrupted, banking is entirely in foreign ownership, a large part of the most productive layer of the young generation has permanently emigrated abroad, and our inflation is among the highest in the European Union.

Franjo’s editorial team at Privredni vjesnik developed intense communication with foreign centers of excellence in economic journalism and science in general. Works by prominent world economists, including Kotler, Crosby, Hawkins, and McKay, were translated into Croatian and published. Particularly interesting is the collaboration that Privredni vjesnik established with the then-leading world economist, the creator of the famous Chicago School, Nobel laureate Milton Friedman. In a short period, this guru of the free market gave Privredni vjesnik three very notable interviews. In them, he advised our economic policymakers: do not rush, you are ahead of other transition countries, seize that opportunity, do not allow complete foreign monopoly over the financial sector, and more. Unfortunately, we did not listen to him either.

As a result of considerable wandering and confusion, and some other even worse aspects of transitional policy, Croatia, which was among the leading transition countries in the initial phases of transition, is now only ahead of Bulgaria in the European Union.

With Franjo’s retirement, Privredni vjesnik lived for a few more years in a different format, and later, like many good projects from earlier times, quietly disappeared from the public space.

I have mentioned only a few of the most interesting sequences in the emergence and development of Privredni vjesnik, with whose existence the business and personal career of the late Franjo Žilić is inextricably linked. Of course, much more could be added to what has already been said that made Privredni vjesnik somewhat unique as an economic publication in these areas. This weekly, printed on light yellowish paper, was an indispensable publication for over fifty years for all those interested in economic development, first of the then Yugoslav state, and later of independent Croatia. It grew into a very respectable source, practically an institution of relevant information about the economic life of the new Croatia, especially regarding its finances.

For all this, we must thank primarily the late Franjo Žilić, his editorial team, and other collaborators. Therefore, it is necessary to add a few sentences about the person of Franjo Žilić himself, his personal profile, and, of course, his contribution to the successful development of a respectable newspaper product.

Franjo Žilić was a distinctive personality. In private life, he tried to be unassuming, reserved, while as a professional in his work he was insightful, responsible, and very receptive to new ideas and thoughts. He was very correct towards his collaborators and well-liked in his collective and society in general. In public, he wanted to be noticed, chose serious company, loved to travel, and get to know other countries, systems, and people. He had an unusual gift for art and culture in general: he loved a beautiful book, a painting by famous masters, a good theater performance. He loved life, had a wide circle of friends who loved and respected him.

In my memory, he will remain a bright example of a sincere friend, a dear and good man, a good connoisseur of his profession, unusually sensitive to “catch” and assess the right news, to frame and format it in a way that would interest the business and broader public.

His collective at Privredni vjesnik loved and respected him. I personally felt his empathy towards others because he was the first to extend a hand to me when I settled in Zagreb as a refugee from the hell of Sarajevo.

And not just to me!

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