Report of the Special Coordinator on the Implementation of the Quick Start Package

May 2001


V. The way ahead

Nearly two years after the creation of the Stability Pact, the general objectives of peace, democracy, security and prosperity remain overriding objectives for the region. All countries of the region have clearly expressed their wish to join the European Union. For its part, the EU reaffirmed at the Zagreb summit in November 2000 the European perspective of the countries participating in the Stabilisation and Association Process and their status as potential candidates for membership in accordance with the Feira conclusions. It also recalled that rapprochement with the EU will go hand in hand with the process of developing regional cooperation. The perspective of EU integration thus remains the primary framework of action in SEE. But while the democratic changes in Serbia are opening the way for reconciliation, cooperation, and integration, the recent events in FYROM show that a degree of uncertainty is still a characteristic for the region. Therefore, continued efforts aimed at conflict prevention and peace building, which are complementary to the EU Stabilization and Association Process are still required within the framework of the Stability Pact.

However, the Stability Pact is clearly entering a new phase. Future assistance and cooperation must be closely aligned to the diverse needs of the countries of the region, while seeking to reinforce and build upon fledgling examples of regional cooperation. The Special Coordinator, in close consultations with the EU and other partners, has suggested prioritizing and streamlining of Stability Pact activities. The objective is to identify priority sectors, develop strategic approaches, and set concrete, annual goals allowing progress to be measured as the implementation process continues. The idea is not to disqualify certain areas nor discourage constructive efforts and cooperation which takes place in many areas. Rather, with a view toward a Regional Conference later this year, the Pact will seek to sharply focus international attention and resources. Important issues that are not mentioned below, such as strengthening good governance and institution building, as well as increasing the role of women in political life will need to be addressed within available opportunities. In addition, collaborative efforts, such as parliamentary cooperation, involving the European Parliament and the assemblies of the CoE and the OSCE should be recognized as having relevance for the work of all three Working Tables.

Against this background, the Special Coordinator suggests focusing the activities of Working Tables on the areas briefly presented below, and invites the Working Tables to consider these suggestions at their upcoming meetings with a view to concluding this adjustment phase at the upcoming Regional Table. This in turn should pave the way for the Next Regional Conference, that the Special Coordinator proposes to hold in October 2001.

V.1 Working Table I

Refugee Issues

Following the democratic changes in Belgrade last autumn, a window of opportunity has opened. The establishment of diplomatic relations between the FRY, Bosnia Herzegovina, and Croatia, and the inclusion of the FRY in international organisations present an enormous opportunity to move from a humanitarian approach to effective, concerted governmental action in the region. Although there was a significant increase in minority returns in Croatia and Bosnia Herzegovina last year, the situation is far from satisfactory. More than 1.347 million refugees and IDPs are still in need of permanent solutions. Continued support for return and local integration, that has become a reality for many thousands, will require additional resources. This year's objective will be to provide the framework and timetable for negotiations on unresolved technical issues in order to remove all remaining obstacles to return and ensure the respect of property and other rights. An "Agenda for Regional Action" by the Refugee Return Initiative is in its final preparatory stages, and tri-lateral negotiations are well underway with a view to find and implement lasting solutions for all remaining refugees.

Media

With the nomination of a new Chairman and Executive Secretary, the Media Task Force is operational again. Based on the Stability Pact Charter for Media Freedom adopted at the regional table meeting at Thessaloniki in June 2000, coherent strategies and clear priorities for funding can be developed. To carry forward the implementation of the commitments contained in the Charter, which ensures the highest international standards of freedom of expression, national working groups have been established in Bosnia and Herzegovina, Macedonia (the Former Yugoslav Republic of Macedonia), and Serbia. They have submitted national Work Plans. Working groups still need to be created in Slovenia and Montenegro (where initial contacts have been established) or endorsed (in Albania, Bulgaria and Romania). With these local structures in place, and the European Commission developing a regional media strategy, considerable progress can be expected to be made in this important sector.

Transborder Cooperation and Inter-Ethnic Dialogue

Trans-frontier co-operation between local authorities and NGOs complements the larger processes of regional cooperation at the national level to which the Stability Pact is particularly committed. It contributes to enhancing democratic practices and good-neighbourly relations and can thus serve both as a tool of conflict prevention and as an instrument of community development. Against the background of ethnically motivated conflicts and unresolved border and status issues, it is of paramount importance to develop relations between local communities and representatives of local authorities in inter alia the fields of economy, environment, infrastructure, education, and culture. Cross-border co-operation among NGOs is particularly important. Ongoing activities for the promotion and rehabilitation of multiethnic and multicultural societies and the development of democratic citizenship, are instrumental in promoting the aims of this sector. In addition, measures aiming at ensuring a framework of legislation and legal practice on national minorities should be supported.

Education and Youth

Education as a tool for human capital formation is of paramount importance. The formation of élites is necessary to perform leadership functions and to provide guidance with regard to central democratic values, such as tolerance and respect for human rights. Further, it is essential for any economic and social development.

The QSP project of "OECD Thematic Country Reviews", which was presented in April 2001, provides an analysis of current educational reform priorities in Southeastern Europe. On that basis, the "Strategy 2001" will be prepared and implemented by the Task Force on Education and Youth. It will facilitate the definition of national working priorities to enhance regional cooperation in the field education. At the beginning of May, representatives of national ministries of education from the SEE will decide on strategies for implementation of the national work plans.

V.2 Working Table II

Regional Trade Liberalisation and Facilitation

Trade liberalization within the region between neighboring countries, with the EU and others, is of utmost importance for the economic development of the region. SEE countries have already begun to reduce intra-regional trade barriers. Further trade integration will stimulate growth and reduce dependency on international assistance.

Seven trade ministers of the region (Albania, BiH, Bulgaria, Croatia, Romania, Macedonia and FRY) have agreed in January 2001 to prepare a Memorandum of Understanding between countries of the region that should be signed in June 2001 at Ministerial level. This MoU will initiate concrete steps with regard to intra-regional trade liberalization and will lead within a few years to increased intra-regional trade. The preparation of the MoU has demonstrated excellent level of commitment and co-operation with and between major external actors including the EC, the US, the WB, and the WTO. Once the MoU is signed, it will be critical to monitor, facilitate and accompany its implementation, taking into account the necessary needs for trade facilitation.

Promotion of the Private Sector

Economic health and growth is key to the stabilization of the region. It will come from a better macroeconomic framework, more attractive to local and foreign investors, but also from concrete and significant help to the private sector, in particular small and medium sized entreprises. In that context, continued efforts must to pursued to implement the Investment Compact so as to accelerate the pace of economic reforms and facilitate their implementation. Similarly, the important efforts already going on to support the private sector must be pursued and if possible increased, taking full advantages of the financial possibilities and expertise of the IFIs, in particular the EBRD, as well as the experience and strength of the business community, especially through the Business Advisory Council. Innovative ideas have to be explored in order to find ways to further increase the flow of private finances in the region. Arrangements such as Public Private Partnership and concessions should be further promoted.

Regional Infrastructure and Environment

The lack of investment for maintenance of infrastructure in the past makes the upgrading its upgrade a basic precondition for both investment and growth. In view of the size of the SEE countries and their location on main European axis, it is absolutely necessary to make sure that infrastructure development is coordinated at regional level. This will also contribute to optimizing the scarce resources available. The dialogue between the EC, IFIs, donors and the countries of the region, which has started in preparation for the first Regional Funding Conference in March 2000, has to be pursued. The guidance papers, which are being developed in transport, energy and water, will lead to comprehensive regional strategies. These strategies will form the basis for future identification and financing of projects of a regional nature. Such regional approaches should pay particular attention to the necessary reforms towards a better regulatory and institutional framework and integrate the necessary requirements for environmental protection which have been neglected in the region.

V.3 Working Table III

Sub-table on Defence and Security

Military Restructuring and Cooperation

As the military sectors of Southeastern European nations face the arduous task of restructuring in the context of a changing and improving security environment, there is a need to facilitate their efforts and ameliorate the resulting challenges. As an obvious first priority, a solid start has been made with the program to retrain redundant military personnel in many countries. The potential of expanding the concept to include the conversion of excess military assets, notably military bases as well as the destruction of surplus stocks of armaments and ammunition, needs to be explored. Essential involvement by NATO appears assured. Verified commitments by the donor community as well as countries of the region to participate remain important prerequisites.

Also to bolster regional cooperation in this vital area, the Stability Pact stands ready to support the region in a number of different regionally led initiatives, including the Southeast European Brigade (SEEBRIG), the Southeast European Security Cooperation Steering Group (SEEGROUP) and the Southeast European Common Assessment Paper (SEECAP).

Small Arms and Light Weapons

The availability, accumulation and uncontrolled flow of small arms and light weapons pose serious threats to peace and stability in the region and prevent economic development and civil-society building in South Eastern Europe. Therefore, the Stability Pact has sought to concentrate donor attention on two tracks: individual country assessments and programs and a regional approach. The aim is to complete all the individual assessments and devise workable strategies for tackling the diffusion of small arms and light weapons. A regional formula that addresses very real and immediate issues and includes better border controls, monitoring of exports and consideration of production facilities needs to be crafted. To this end, the Pact will participate in the 2001 United Nations Conference on Small Arms and ensure that regional follow-up activities have a constructive, meaningful, and realistic South Eastern Europe component.

Disaster Preparedness and Prevention

A key area of interest for countries of the region that was not included in the QSP is Disaster Preparedness (DPPI). It identifies a key area, which will be a new priority for Southeast European Countries in the future. An operational team has written a regional report after visiting 12 Countries of the region to determine disaster risks and capabilities to counter these risks and to come up with suggestions for regional cooperation. This report will be taken up in a regional workshop on 26-27 June to determine the priorities of the regional countries and thereby the way ahead.

Sub-table on Justice and Home Affairs

Fight against Corruption and Organised Crime

The effort undertaken in the framework of the Anti Corruption Initiative has to be pursued intensively. While the first phase has facilitated and promoted significant progress, the assessment just finalized for major reforms in the region should now be translated in actual reforms. The international community, through the CoE and the OECD, must continue to encourage and support genuine efforts from all the countries of the region to eradicate this major impediment to stability and growth.

The October 2000 Working Table III meeting in Sofia adopted the Stability Pact Fight against Organised Crime Initiative. In January, the first Steering Committee/Advisory and Contact Group agreed that High Level Representatives would present their needs/gaps analysis to the Steering Committee and the Advisory and Contact Group (international experts) to discuss regional needs, establish National and Regional Action Plans and to present these to the next Regional Funding Conference. This will safeguard the key principle of regional ownership in this initiative and ensure that international expertise is available during the whole cycle of implementation.

In this context, the fight against trafficking in human beings is particularly important The Stability Pact Task Force, sponsored by OSCE/ODIHR, has identified seven areas of concern, namely: Awareness raising, training and exchange programs, law enforcement co-operation, victim protection programs, return and reintegration assistance, relevant legislative reform, prevention. The TF has elaborated a three-year action plan and will focus for the first year on protection and prevention issues (in line with the other SP initiatives). The overall budget for which funding can hopefully secured before the Regional Funding Conference is EURO 12 million for the whole implementation phase of three years.

Migration

Migration and asylum questions are of growing concern in the framework of the Stability Pact as the population flows to, from, and via the region are detrimental to stabilisation, damaging to democratic development, and hindering to economic reforms.

The process can build on progress made by the MAI (Migration and Asylum Initiative) that was launched by the Swedish EU presidency, based on partnerships between a lead-country (e.g. EU member state), a partner country (an accession country) and the SAA countries (Moldova to be added once it becomes a partner in the Stability Pact) aiming at legislative reform and capacity building as a primary tool for European integration. Countries, together with relevant international organisations, will form country teams and develop the national action plans. A Support Unit will prepare the work of the Steering Committee and assures coordination in the region. The action plans will be presented to the regional funding conference.

Police Training and Co-operation

This area is of particular importance in the wider context of internal security sector reform. The process got underway with the December 2000 meeting of high police officials in Sarajevo, enabling the establishment of contacts among all countries of the region. A follow on meeting will be held in Belgrade in early June 2001. The aim is to establish a South East European police forum, which will meet regularly and provide a basis for network building. This is the logical next step in the police initiative, endorsed by the Sofia meeting of the Working Table. The Sarajevo police meeting also endorsed the creation of an informal expert working group which has been established with a view to organising the first regional training sessions by the end of this year. The working group will report to the Belgrade meeting of the police forum, and to the WT 3 meeting. Subsequently, it is envisaged that the recommendations will be forwarded to the Regional Conference in the autumn.


Special Coordinator of the Stability Pact for South Eastern Europe