May 2001
One year after the First Regional Funding Conference took place, the implementation of the Quick Start Package (QSP) is showing encouraging results. Out of 244 projects of all three Working Tables, 201 (82 %) have effectively started. The QSP had been presented by the Special Coordinator of the Stability Pact to the Regional Funding Conference held in Brussels on 29-30 March 2000. At this conference donors pledged over EURO 2.4 billion.
The overall disbursement rate is satisfactory. About half of the aid committed for Working Table I has been expended, including refugee return programs with a disbursement rate about 70%. At Working Table III, 55% of the money pledged has by now reached its recipients. In the infrastructure sector, 15 out of 25 projects have started. These represent 75% of the total commitment for this sector. From these, 9 projects are already under construction, such as the road between Durres and Kukes in Northern Albania. As for some disbursement delays, both recipients and donors share responsibility. For instance, delays have been caused by long procedures on the donors side, or the lack of legal conditions in the target countries, e.g., in the field of land expropriation. All in all, the QSP has proved to be a very important instrument to generate momentum for the Stability Pact and to mobilise additional funds for the region.
The QSP increased the momentum for substantial internal reforms aimed at drawing the countries of the region closer to the EU. For instance, considerable progress has been achieved in the fight against corruption, which resulted in a detailed reform package for each of the countries concerned. Similarly, the Investment Compact spelled out reform requirements with a view to remove obstacles to private investment.
Regional cooperation has considerably improved since the Pact was launched. In many sectors QSP projects have brought about the beginning of a genuine political regional dialogue. For instance, trade ministers of Albania, BiH, Bulgaria, Croatia, Romania, the FYR of Macedonia and the FRY have agreed in January 2001 to prepare a Memorandum of Understanding between them that should be signed in June at Ministerial level. This MoU will initiate concrete steps with regard to intra-regional trade liberalization, which will stimulate growth, contribute to foreign investments, and accelerate EU approximation.
Through the QSP, the Stability Pact Partners enabled the principles of the Pact to take root. This has contributed to the promotion of peace and democracy across the region as a whole, for instance in the following way:
Recent events show that nearly two years after the creation of the Stability Pact, the general objectives of peace, democracy, security and prosperity continue to be of full relevance in SEE. Efforts aimed at conflict prevention and peace building are still required.
The Special Coordinator, in close consultation with the EU and other partners, therefore suggests to streamline Stability Pact activities and to identify priority sectors and strategies, which set concrete, annual goals. Priorities for the near future should include, inter alia, refugee issues and inter-ethnic relations, private investment and regional trade, fighting organised crime and corruption, as well as disaster prepredness and prevention. The Working Tables are invited to consider these suggestions at their upcoming meetings.
The conditions for a second Regional Conference, as set out by the HLSG for Donor Coordination in SEE, have been met. The Special Coordinator recommends to hold this conference on 25-26 October 2001 in Bucharest.