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BalkanPerspective by Ari Rusila

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18

11

2008

Grumbling in puppet state

In Kosovo fifteen movements and different non-governmental organizations have announced a demonstration for Wednesday (19/11/2008) in Priština against the six-point Serbia-UN plan, which basic idea is to agree EULEX mission deployment to Kosovo. " We invite all citizens of Kosovo to join us an in a demonstration and oppose in a peaceful way the six points which affect the sovereignty and territorial integrity of Kosovo," reads the joint statement.

"The six points proposed by the UN and modified for Serbia , aim to divide Kosovo in two: 1/3 of the territory will be given to Serb parallel structures, which means effective control by Serbia. These points reduce Kosovo's institutional development by deploying Serb parallel institutions in the elements most important for the working of state sovereignty, especially in policing, courts and customs. This is unacceptable", the statement said.

KLA considering violent actions

A bit more harder line represents former Albanian terrorist organization Kosovo Liberation Army and “war veterans”, which have issued a threat of war against the international community that is preserving peace in this Serbian province. Xhavit Jashari - a chief representative of the KLA said, that “when you gain something by war, a war is required to take that from you".

Jashari also noted that the KLA will consider the years after the war only a cease-fire phase and that they will take their arms if Kosovo's "statehood" is questioned as is being done by the EU's civilian plan to bring rule of law to Kosovo.

About legal base

Different Kosovo organizations have come together to express their dissatisfaction and defend the Kosovo conceptualized on Article 1, Paragraph 1 of the Constitution of the country. This article announces the Republic of Kosovo ‘an independent state, sovereign and democratic, unified and indivisible.’ This is a constitutional obligation and Kosovo will become so,” reads the statement.

However a wider framework is international law, UNSC resolution 1244, which states that Kosovo is part of today’s Serbia, temporary under international administration like UN protectorate, before new resolution will replace the existing one. While the resolution is based to agreement with Serbia it is self-evident that UN will negotiate with Serbia about implementation details of resolution.

Pragmatic point of view

Analysts in Priština have noted, that accepting the plan for would mean that the Kosovo officials would formally lose their sovereignty over North Kosovo, though this sovereignty does not exist essentially. This view I totally agree.

In fact, on the ground, today’s Kosovo is a quasi-state with good change to become a “failed” or “captured state” if international community does not have firm grip over province. A state normally needs statehood structures, executive power over own territory and sustainable economy. Two first elements are on hands of international outsiders and the export of province can cover 5-10 % of import - the rest is covered mainly by international aid and drug money.

Instead of demonstrations and war threads it could be wiser to Kosovo Albanians to concentrate building their society and economy with international donors and let Kosovo Serbs to do the same.

More my views over Balkans and Caucasus one may find from my Archives:Blog

Balkan Belgrad Ari Rusila International affairs EULEX

16

11

2008

UN struggling with Kosovo's parallel structures

New Kosova Report - a non-profit information portal about Kosovo/a - got hold a secret facsimile from the former UNMIK chief Joachim Rücker sent to the United Nations' Under-Secretary-General for Peacekeeping Operations Jean-Marie Guéhenno on 15 October 2007. The letter describes how the Serb government was increasingly building parallel structures/services while the province was meant to be under authority of international administration according UN resolution 1244.

From my point of view Rücker’s letter highlights some aspects of recent Kosovo administration such as colonial attitude, ineffectiveness and contradictory actions of international community.

Partition with help of parallel structures

Rücker states that

accelerating partition prejudices ongoing political developments by creating a fait accompli where the K-Serbian-inhabited areas of Kosovo are both separated from the rest of Kosovo and made increasingly reliant on Belgrade. At the current pace, areas inhabited by K-Serbs will soon be capable of consuming basic utilities provided directly from Serbia without any communication with the rest of Kosovo or any respect for Kosovo's laws and regulations.

The letter is followed by a catalogue of buildings housing security, transportation, public administration, justice, healthcare, telecommunication, energy and financial institutions which are counterparts to the Serbia ones.

Rücker complains, that UNMIK's ability to respond to this situation is limited due in large part to our reliance on the willingness of KFOR participating states to utilise force to achieve objectives beyond providing a Safe and secure environment. Rücker's original letter with appendix (catalogue) can be found from here.

Colonial thinking

Reading Rücker’s complains one could think that he is envious of Serbia that it is making (better) his job by offering services to local population. His attitude is represents normal colonial top-to-bottom thinking where important is who has formal power and credit about actions.

UNMIK has had full executive power some nine years in Kosovo with huge financial resources (biggest per capita of all missions in the world) and support of majority of local population. In spite of this it has end up in a fiasco regarding its human rights and capacity building efforts more or less both majority and minority ethnic groups.

Administration for the people

While Rücker conception represents centralism and formality where important is who provides services – and gets credit of that – the total opposite way of thinking could be to take up a position of local stakeholders – view of a beneficiary of public services.

Besides political game the bottom-to-top reasons for parallel structures could be, that

  • there is not an alternative public services available,
  • the services provided by by parallel structures are better than official ones,
  • there is no access to official public services, or
  • local people are afraid to go to use services they perceive hostile or are situated in hostile environment

Contradictory actions

One observation about contradictory actions I can make from my personal experiences. In Rücker’s catalogue was many buildings with parallel institutions which were not created only with help of aid from Serbia. Many schools, health centres, education, sport and culture facilities as well infrastructure projects got financing from USAID, EU, OSCE, DFID and even UN when they were working exactly same way than during Rücker’s time.

On the other hand international administration was building facilities and on the other hand they complain the use of them. The good thing with all this mess is that KFOR did not started military operations to destroy these public services even they are managed by “wrong” administrators.

More my views over Balkans and Caucasus one may find from my Archives:Blog.

14

11

2008

Powergame in EU-Russia summit

EU summit meeting o 14th Nov. 2008 with Russia in France is designed to reopen talks on a pact of cooperation after the crisis in relations caused by the Georgia conflict on August 2008. Before meeting hard words have been changed over Kaliningrad missiles, Nato radars and EU/OSCE monitors in Georgia. However the core question can be the energy game. A day before summit EU came out with its supergrid plan and Russia questioning Baltic Pipe. Southern energy corridor is an other battleground.

Power supergrid plan

EU’s Power supergrid plan is partly designed to decrease EU’s dependence about Russian gas. The Timesonline got look about plan and describes it as follows (Source: Timesonline):

The building blocks of the proposed supergrid would be new cables linking North Sea wind farms, and a network patching together the disparate electricity grids of the Baltic region and the countries bordering the Mediterranean, according to a blueprint drawn up by the European Commission. EU states will also be asked to pay for at least two ambitious gas pipelines to bring in supplies from Central Asia and Africa. The plans also call for a Community Gas Ring, or a network allowing EU countries to share supplies if Russia turns off the taps.

The EU Energy Security Plan notes that Europe imports 61 per cent of its gas, a figure projected to rise to 73 per cent by 2020. Russia sells about two-fifths of the total, including the entire supply of several countries.

How the supergrid will work is described in graphic europesupergrid2(Source Timesonline)

Same time in South…

One part of energy game is the southern energy corridor. During 2008 Russia has put also the southern corridor pipeline in doubts. Gazprom has override “Nabucco” with its rival “SouthStream” project. Same time GUUAM Group in Caucasus – cooperation body supported by US energy giants and military-industrial-complex - is breaking up as well rest of US “Silk Road Strategy”. (More about this in my previous artcles ”War on pipes” 9/9/2008 and “Is GUUAM dead” 4/11/2008 from my Archives:Blog)

…and in North

Also a day before Russian Prime Minister Vladimir Putin has questioned the construction of the Nord Stream pipeline for the first time since the signing of the agreement with Germany to establish the gas delivery network, as gas is set to become cheaper along with the drop in oil prices.

"Europe must decide whether it needs this pipeline or not," Mr Putin told Finnish Prime Minister Matti Vanhanen on Wednesday (12 November) at a meeting in Moscow. "If you don't, we will build liquefaction plants and send gas to world markets, including to European markets. But it will be simply more expensive for you," he added.

The Baltic states and Poland strongly oppose the project, concerned they would be cut off from existing gas infrastructure with Russia, as Moscow would probably channel most of the gas deliveries through the direct pipeline to Germany. Sweden also opposes the project due to environmental concerns, echoed by MEPs, who have called for a new investigation into the pipeline's impact on the environment. Finland, one of several EU states that has a say in approving the project, will conduct an environmental review of the plan next year, Mr Vanhanen said after the meeting with his Russian counterpart on Wednesday. (Source EUobserver.com)

So for Baltic states and Poland Nord Stream is more political and partly economical question, for Germany mainly economical topic and for Sweden and Finland mostly environmental question.

The bottom line

It is interesting to see how the power game will be developing. How big share gas, oil and wind will claim from energy markets? Where the pipes will be? How environmental and economical aspects will match with political aims? The game is still open.

More my articles one may find from my BalkanBlog

12

11

2008

Mitrovica and bridge which disconnects

Since 1999 Mitrovica has been the flashpoint of ethnic tensions in Kosovo. Mass demonstrations, violent clashes, shootings and teargas, but also manipulation of media for propaganda interests came familiar also to me while working there 2000-2002. Mitrovica bridge came as symbol of confrontation between Serbs and Albanians and in spite of many multiethnic projects and experiments it still is, especially after March 2004 events. Some week ago I read last plan to solve this deadlock.

Kosovar Institute for Policy Research and Development (KIPRED) is local Kosovo Albanian lead think tank which published its proposal - "Looking beyond Mitrovica bridge: an 'Ahtisaari plus' package proposal" - October 2008. Interesting with this paper is that it is made by local researchers not by international consultants like before. The Aim of proposal is to create three step phased solution, which will provide the ground for state functionality and sustainable development for both the Albanians and Serbs in northern Kosovo. (More about KIPRED here. here.)

KIPRED Plan

As framework the Albanian dominated Mitrovica South and Serb dominated Mitrovica North and Zvecan municipality are handled like a single economic area. KIPRED proposes a phased political and economic development solution which main points are following:

  • Establishing the rule of law by full deployment EULEX in northern Kosovo; by re-establishing custom services at boundary crossings to Serbia and by disbanding parallel security structures supported by Serbia.
  • Implementation of decentralization by creating a "trust fund" for infrastructural development; by organizing municipal elections, by transferring power of UNMIK Police to Kosovo Police Service and by implementing privatization of socially owned enterprises throughout the north.
  • Implementation of "special investment area", "free customs zone" and conducting "special economic study"

Plan of aggrandizement

The main weakness of KIPRED proposal is that under cover of decentralization and economical development smoke screen it is a simple plan of conquer northern Kosovo under Pristina government. The idea is to replace administrative, rule & law and security structures by Albanian dominated government lead structures without any participation of local population. To reach this aim the plan proposes active support from UNMIK and KFOR. In theory it is possible to put KFOR/Nato tanks and brigades all over northern Kosovo, establish a local puppet administration in Mitrovica North and Zvecan - like has been done in Pristina - and so create an artificial quasi-region. After occupation it is easy to implement privatization of local social companies to hands of near government interest groups. This kind of imposed solutions however are not sustainable, they are more creating problems than solving them.

An alternative Approach

The basic fact is that Mitrovica bridge for Serbs symbolizes a front line of Serbia against Albanian occupation. The northern part of Kosovo wants continue live integrated to its home country. It is also possible to keep "frozen conflict" decades and formally act under UNMIK umbrella as international protectorate but what is the idea with that? A pragmatic approach is partition: to draw border on Ibar river - northern Kosovo would continue as part of Serbia, southern part could be independent Kosovo and the role of international community would change from administrator to facilitator. This solution would help to focus resources where they are needed i.e. socio-economical development. Creating jobs and increasing standard of living is the best guarantee for peaceful progress, not artificial security under foreign army.

Bottom line

KIPRED has represented some valuable ideas to boost economical development like "special investment area" and "free customs zone". This kind of ideas have already implemented in different border areas elsewhere and normally they are increasing economical activity on both sides of border. These phase II and III activities can be implemented also decentralized way without military occupation. Indeed the outcome of development projects is allways better if local stakeholders have commitment to aims and implementation. Therefore drawing border middle of Mitrovica bridge can create real cooperation through economical interests. If agreed by Belgrade and Pristina this simple act can shift the whole conflict to history books.

More over Kosovo in my Archives/TagCloud.

10

11

2008

Refugees and IDPs in western Balkans

Background of this post

Bloggers Unite is an attempt to harness the power of the blogosphere to make the world a better place. By asking bloggers to write about a particular subject on 1 day of the month, a single voice can be joined with thousands to help make a difference. This time, because of our work to increase human rights awareness, many members chose to go one step further to raise awareness for refugees — people who are impacted by these issues. So, on Nov. 10, thousands of bloggers will write about the various challenges faced by the 11 million people who have no country to call home and the 40 million more who have been displaced because of war and natural disasters. (More about this campaign here. )

Refugees and IDPs in West Balkans__

This theme is of paramount importance in Balkans. Beginning 1991, political upheavals - such as the breakup of Yugoslavia - displaced millions of people. Officially one part of these people are refugees meaning that they have escaped to other country, one part is "internally displaced persons" (IDPs) meaning that they have escaped from their homevillage/-town but still are in the same country than before.

Latest statistics about this problem in western Balkans are following (country, no of refugees - no of IDPs - Total including also stateless etc. persons):

  • Albania: 77 - 0 - 101
  • Bosnia-Herzegovina: 7.367 - 130.984 - 146.586
  • Croatia: 1.642 - 2.873 - 7.826
  • FRY Macedonia: 1.235 - 0 - 2.397
  • Montenegro: 8.528 - 16.155 - 24.822
  • Serbia: 97.995 - 226.350 - 326.853
  • Slovenia: 263 - 0 - 4.408

(Source: UNHCR statistics end-2007, table established 3rd June 2008)

The table above is maybe surprising to those who have the picture - made by western mainstreammedia - in their minds, that (only) Serbs were making ethnic cleansing. In reality today the Serbs are the biggest victims of Balkan wars.

Roots and possible solution

Bosnian war (1992-95) included massive transfer of populations so it was possible to draw new boundaries according ethnic groups. Dayton Agreement 1995 created federation like Bosnia with entities according these lines so situation with IDPs in Bosnia-Herzegvina is quite stabil.

In Serbia the refugee problem came when Serbs were expelled from East Croatia and Croatian Krajina. The IDP problem is a follow-up of Kosovo conflict when some 200.000 Serbs and some thousends of Roma were expelled from there to northern Serb-dominated part of province or to Serbia. During Nato bombings also Kosovo Albanians - about 700.000 - escaped from the province but most of them have returned back.

To solve refugee and IDP problem in western Balkans there is a need of massive housing programme especially in Serbia and this can probably be implemented with help of international donors. Housing activities should also be supported by economical development programmes to decrease unemployment figures and social problems common in locations with big share of refugees/IDPs.

More my articles one may find from my Archives:Blog

09

11

2008

Georgia - demonstrations and true story coming out

I was watching Friday (7th November 2008) news from Georgia's capital Tbilisi where some 10.000 demonstrators were marching against current political leadership and demanding early presidential and parliamentary elections. They were gathering also on the national parliament and the presidential residence to commemorate the events of last year, when a similar rally was violently dispersed by police. Same time also anglo-american mainstreammedia has widely published new reports about how events started on August 7th 2008. Both of these events are not very favorable to Georgia's President Saakashvili.

Demonstrators and supporters of Georgian opposition parties wanted an investigation into the August war in South Ossetia, freedom of speech and press, and the release of political prisoners. They also want the former independent television station – Imedi TV – to be returned to its rightful owners, the family of Badri Patarkatsishvili who died in London in February this year.

Like 2007

It has went a year now on last big similar protest in Tbilisi. Then the opposition was demanding Mikhail Saakashvili’s resignation, and an immediate parliamentary election. On the fifth day of demonstrations, when about 60,000 people were rallying in the capital, the police started dispersing the crowd using sound guns, tear gas and water cannons against protesters. Hundreds of protesters were injured in the clashes.

Who started war?

New information about events on 7th August 2008 came public e.g. through The New York Times and BBC. According OSCE monitors on the ground it is now in doubt that some groups from South-Ossetia had provocated Georgia's attack by firing some Georgian villages. The OSCE monitors did not find any proof about this provocation.

In Tshinvali - South-Ossetian capital - was also three OSCE monitors and they have keeped record about first hours of Georgia's attack against town. Their records show, that about half of bombings and heavy artillery fire came middle of civil neighborhood without any military targets.

Countdown for Saakashvili?

Western media has described President Saakashvili as an reliable ally, modern democrat and popular leader. The events on 7th Aug. 2008 showed an authoritarian gambler side of him. There was some doubts about fairness with last elections so maybe demonstrators have a case. Let's monitor how now started rallies are continuing - are they coming bigger, what is the response of police. Maybe the West should start to look an new ally now, before it is too late.

Media responce

An other aspect with these news about August 7th events bothers me. After three months anglo-american sc. free "investigative" mainstream press is starting to tell what really happened. These facts were in public knowledge immediately through Russian media and latest one month in European continental media (E.g. I wrote an article "OSCE report fault Georgia ..." on 3rd September based Der Spiegel article 1st September, Archive:Blog).

More my views one may find from my BalkanBlog

07

11

2008

EU squanders aid-money by wrong approach in Western Balkans

On 5 November 2008 the Commission adopted its annual strategy document explaining its policy on EU enlargement. Furthermore, the 2008 progress reports were published on the same date, where the Commission services monitor and assess the achievements of each of the candidate and potential candidates over the last year. Regarding Serbia and Kosovo the reports are giving quite different picture, even bigger gap is visible if EU’s input and achievements are added to the same context.

The EU input...

After Kosovo conflict European Union has invested some 4.000 million euro for capacity building of Kosovo administration at local, regional and central levels, to some infrastructure investments etc. In addition Kosovo security system has enjoyed services (or consumption) of remarkable Kfor troops. In fact Kosovo has got more money per capita than any other mission country in the world.

Serbia has also got some aid, but less than half per capita and without extra services or money of foreign troops.

Advisers and experts around the globe have been developing Kosovo administration and economy towards highest EU standards same time when Serbia was trying do some progress on its own.

...and the outcome

A) Serbia

Like earlier reports also the latest one states that Serbia has good capacity in its public administration. European integration structures were strengthened and the National Programme for EU Integration was adopted. Regulatory bodies performed well under difficult conditions.

The Serbian economy continued to grow strongly and the country made some progress towards establishing a functioning market economy.Regarding European standards Serbia is well placed to implement the SAA and the Interim Agreement, thanks to its good administrative capacity. In conclusion Belgrade was nonetheless offered the prospect that it could become a EU candidate next year.

B) Kosovo

The Kosovo government needs to ensure administrative capacity, sufficient means and determination to enable effective and efficient implementation and enforcement.

The economy of Kosovo has grown at a somewhat higher rate than in previous years, but Kosovo has made very limited and uneven progress towards establishing a functioning market economy. Macroeconomic performance was marked by weak budget implementation growing inflation, very high unemployment and external imbalances.

Kosovo has made some progress in approximating its legislation and policies with European standards, however, little progress has been made on the effective implementation and enforcement of legislation.

In conclusion Kosovo had by far the most negative evaluation on its achievements during the year.

Lessons learned

An average EU taxpayer is maybe a little bit confused how the massive input has materialized so poorly on the ground. How is it possible that progress made without that massive input has been better when massive input elsewhere is leading almost opposite way.

The answer is not Kosovo war. During 1999 Nato bombings were causing most destruction to civilian structures and infrastructure in Serbia not in Kosovo.

I think main reason for poor performance is the practice that EU has again used top-to bottom approach with its development activities. In practice this means, that EU Commission bureaucrats are implementing some nice high level European ideals, throw money in, recruit western consultancy firms and are waiting some nice reports (which of course are reflecting huge progress etc). This has happened in Kosovo and Bosnia-Herzegovina too, which also got red light from Brussels.

The other problem with top-to-bottom approach is that commitment of local stakeholders remains low – the advisers are working for Brussels not for them or with them. The follow-up from this practice is that modest achievements are only temporary and when aid is spend the system collapses.

My conclusion is that latest now it is time to start new bottom-to-top approach in western Balkans and especially in Kosovo using participatory planning methods as tool while designing future visions, strategies, action plans and projects among local stakeholders.

More my articles over Balkan and Caucasus events one may find from my Archives:Blog

06

11

2008

Transdnistrian number game

The future status of Transdnistria – or Pridnestrovie - is again, inspired maybe the events in Georgia on August 2008, coming to negotiation tables. With local stakeholders there is some readiness to discuss further to solve this frozen conflict, however the outsiders are twisting arms about formalities. What is the content of number games 5, 5+2, 3+2, 2+1 is also designing the outcome - e.g. alternative solutions - of negotiations.

In 1992, the Moldovan government engaged in a short war with authorities in Transdnistria. Hostlities ended after a Russian military intervention by the then Russian 14th army stationered in Transdnistria. Since then Transdnistria has de facto been on its own like independent state.

The original 5

The format created after war was 5, which always consisted of the five “full” participants:

  • Moldova and Transdnistria as the parties to the conflict;
  • Ukraine and Russia as mediators and also guarantor states, guaranteeing to both parties to the conflict the fulfilment and respect of (and enforcement of) whatever negotiated outcome the talks could bring; and
  • OSCE as joint mediator, alongside fellow mediators Russia and Ukraine.

2+1 = Kozak plan

In the spring of 2003, Russian President Vladimir Putin had named Dmitri Kozak — at that time the deputy head of his presidential administration — as his special envoy to Moldova. His task was clear - to find a solution to the frozen conflict that had emerged in 1992. Thanks to compromises brokered by him, Moldova and Transdniestria found common ground for agreement know as “Kozak plan” or Kozak memorandum.

The Basic Principles laid out in this document was about the unitary, democratic, demilitarized and neutral character of the state. The federal state had to have 2 sub-entities, PMR and the Gagauz autonomy, with their own recognized local government structures, anthems and flags.

Kozak plan was initialed page by page by both Moldova's President Vladimir Voronin and Transdniestria's President Igor Smirnov. The idea was that on 25 November 2003, the thenRussian President Vladimir Putin scheduled a surprising visit to Moldova to witness the signing of a federalization document as the solution to the conflict.

The visit was canceled by President Voronin’s last minute rejection. Moldova nixed the “Kozak plan” within hours of its planned signing as the result of pressure by hardliners in the West: The Moldovan President was informed by the then OSCE Dutch chairman Jaap de Hoop Scheffer, the U.S. Ambassador to Moldova Heather Hodges and the EU Council Secretary General Javier Solana about opposition that Washington and Bruxelles had concerning the mutually agreed-upon settlement plan between the two sides.

5+2 is not 7

The two sides were then at starting point without any settlement. Transdniestria continued to act like a sovereign independent state under the name of PMR (Pridnestrovskaaia Moldavskaia Respublica). Moldova had rejected the only viable plan that both sides could conceivably agree on.

With this background the “5″-format became “5+2″ in 2005, when the European Union and the USA joined the table. They joined as mere observers, a role which they still have today. They are the “2″ add-on’s and the reason why the 5 didn’t become the 7 when they were added: Because they are not full fledged participants but are merely there to watch and, at most, give suggestions and constructive advice if asked. Some times there is also 3+2 format meetings including representatives of the mediators - the Russian Federation, Ukraine and the OSCE - as well as the European Union and the United States as observers.

1+2 = Kozak plan II

August 2008 was the turning point in negotiation process. Conflict in Georgia was in background when Russian President Medvedev first held talks with Moldova’s President Voronin in Sotchi on August 25th and later with Transdnistria’s leader Smirnov on September 3rd. 5+2 format was replaced with 1+2 format including Moscow as mediator, Chisinau and Tiraspol as the parties of conflict.

The basic elements of new deal are probably similar like in Kozak plan I. The price of reunion will be high to Moldova because probably federation form with strong minority or veto rules would neutralize Moldova’s foreign policy related integration towards EU and Nato.

Higher price for Moldova could be even stronger sovereignty of Transdnistria with thread that also other autonomous territory of Moldova – namely Gagauz region – would follow the steps of Transdnistria.

Negotiations are now ongoing and the aim is signing the conflict-settlement documents in a Medvedev-Voronin-Smirnov meeting soon. One part of time frame is the fact that reunifying Transdnistria with Moldova could bring the win to Moldova’s current leadership in general elections in the Spring 2009.

Progress in sight 2008

Year 2008 has showed gradual progress to solve Transdnistria/Moldova conflict. However there is still the number game on table. From my point of view I always prefer bottom to top approach over opposite process. So if 1+2 format can bring a solution mutually acceptable to “conflicting parties” - i.e Moldova and Transdnistria – it should be legitimate.

EU and US are of course not pleased about today’s development and e.g. Kalman Mizsei – EU representative/Moldova – said that the approved international format of 5+2 should be followed, adding that the EU won’t accept any solution brokered outside this format. This can be seen a bitter statement of bystander but if outsiders can not facilitate constructively so let parties find solutions on their own.

The best outcome could be if a political settlement made directly in the 1+2 format by conflicting parties and Russia’s mediation would afterward be referred in 5+2 format for Western blessings so everybody could be officially happy.

More my articles over Balkans and Caucasus one may find from my Archives:Blog

Caucasus

03

11

2008

Is GUUAM dead?

After “Cold War” US has all the while expanded its influence post-Soviet territory with aim to guide those region’s natural resources under US companies. As stakes have been control over the oil and gas of the Caspian Sea/Black Sea/Caucasus basin, and the control of multiple key energy pipelines criss-crossing the region. Economical interests have been linked to political game e.g. Nato enlargement. While EU has been more bystander Russia has during last couple of years weight down the scale in favour of its own interests by series of successful operations.

GUUAM & SRS

GUUAM (Georgia, Ukraine, Uzbekistan, Azerbaijan and Moldova) Group was founded 1999 with help of US to foster favourable conditions conducive to economic growth through development of an Europe-Caucasus-Asia transport corridor. GUUAM was dominated by Anglo-American oil interests, ultimately purports to exclude Russia from oil and gas deposits in the Caspian area, as well as isolating Moscow politically.

From its part GUUAM was designed to support sc. Silk Road Strategy Act – adopted by US Cogress March 1999 - which defined America’s broad economic and strategic interests in a region extending from the Mediterranean to Central Asia. The Silk Road Strategy (SRS) outlines a framework for the development of America’s business empire through development of an Europe-Caucasus-Asia transport corridor. (More about this in my previous article “War on Pipes” Sep. 2008, in my Archive:Blog )

Cracks

Now GUUAM is coming to end of its short road. Already earlier Uzbekistan withdraw from it leaving behind a stump GUAM. Then Georgia started its aggressions with false idea of western support leading today’s situation and possibility to escalate to “small intensity war” between present Georgian leadership and separatist regions Abkhazia and South-Ossetia.

Moldova was aiming towards Nato and EU but after conflict in Georgia it started to look other alternatives. Russia has offered its help to solve Moldova’s long term problem with Transdnistria and if a federation model will be accepted by local stakeholders it probably neutralizes Moldova’s position between US/EU and Russia.

Last weekend was also highlight of tendency where political attitudes of Azerbaijan and Russia have approached each other. Russia again took the initiative acting as a mediator between Armenia and Azerbaijan to solve long term conflict of Nagorno-Karabakh and a common memorandum signed 2nd November 2008 is first step of solution.

The last piece of GUUAM is Ukraine, which is deeply divided pro-Russian East and pro-Nato/EU West. When political struggle now has made cracks also inside western orientated part also this last fortress has degenerated to stagnation.

KO

Parallel with Russia’s able foreign policy the US actions have been short-sighted, weak and fruitless. Waiting for elections and financial turmoil have took their part but in energy sector also some states in South-America have now more independent and selfish position than before. Same time Iraq occupation is coming to end when also Alaska can keep its energy reserves when new US President takes his office the perspectives of US energy giants are more foggy than for a long time.

If one would like to see a bright side with this depression – or even knock out - of US foreign/energy policy it could be the need to reduce pollutions and to support alternative energy solutions which at global scale could help to deal with clima change.

More my articles about Caucasusnone may find from my Archive:Blog

01

11

2008

EULEX, UN and mess-up in Kosovo

Last Spring EU was building enthusiastically its Rule of Law Mission EULEX for Kosovo. However even today EULEX has not started work, its wish is to do so before end of the year 2008. Some hundreds EULEX mission members are already in Kosovo wondering what to do and where.

Kosovo had made unilateral declaring of independence, EULEX should replace UNMIK in four months and International Community Office (ICO) should supervise Kosovo’s independence with Nato-lead KFOR troops backing. Everything was unclear even in paper and in reality the mess has been even bigger. (Earlier I have wrote many articles about this topic, please check my Archives:Blog )

Positions today

The basic position of today’s situation is that to be a credible operation in Kosovo according great ideals imaged earlier in Brussels EULEX should be deployed throughout province. Belgrad however does not recognise EULEX. They are dealing only with UN/UNMIK, which implements UNSC resolution 1244, where is stated Kosovo province to be part of Serbia and temporary under international administration – not a word there about some independence. Serbs have even collected a petition against EULEX with about 20.000 names on it.

An idea to deploy EULEX only south of Ibar river while UN would still administer North Kosovo and Serb enclaves (Ghettos) in Albanian dominated southern part was not acceptable to international community so situation remains unclear.

UN seeking compromise

UN – which according original plan supposed to hand over its operation to EULEX during past Summer – has negotiated intensively a solution with Belgrad for this problem, which should clear situation in Security Council meeting hopefully on November or December.

The main components of possible solution are

  • that EULEX operates formally under UN umbrella and is approved in UNSC,
  • EULEX is status neutral, and
  • EULEX does not have mandate for implementation of sc. Ahtisaari’s plan.

In addition there is ongoing technical negotiations between UN and Belgrade and Pristina authorities over six issues – police, customs, judicial system, traffic-infrastructure, borderline and Serbian cultural heritage.

The bottom line

EU is so impatient to finally launch its operation and replace UN mission that maybe solution according components mentioned above can be reached. There is however doubts that this solution confirms de facto partition of Kosovo. From my point of view this is not big thread if it is first solution in last ten years which local stakeholders - Belgrade and Pristina – could together accept.

More my views over Balkans and Caucasus one may find from my Archives:Blog

30

10

2008

Bosnia collapsing?

Last week top level European politicians have awaken to reality concerning the state of Bosnia-Herzegovina, namely that this artificial creature made by Dayton agreement is starting to collapse. This in spite of hundreds of millions of euros which e.g. EU has thrown away to build some kind of multi-ethnical ideal. (Summary of Dayton Agreement here)

Dayton Agreement was made 1995 after bloody war (1992-95) had almost finished ethnical cleansings/transfer of populations so that it was possible to draw administrative boundaries according ethnical groups. The agreement split Bosnia into two semi-independent entities – the Serb Republic and the Muslim-Croat Federation and three ethnic groups – Croats, Serbs and Bosniaks – are trying to lead state together and separately. Entities are unitedby weak central institutions, administration is quite heavy loaded with some 170 ministers and whole system is supervised by international presence.

Dayton designer and former Bosnia administrator are worried

On 22nd Oct. 2008 the former United States diplomat Richard Holbrooke and former High Representative in Bosnia Paddy Ashdown published an article urging European Union and US leaders to reinforce their engagement in Bosnia and halt a new crisis which threatens to bring the country to collapse.

The two diplomats say that Bosnian Serb Prime Minister Milorad Dodik has taken advantage of the weakness of constitutional state structures, fatigue and the international community’s saturation, as well as the inability of the EU to meet its own conditions, and over the course of the last two years has succeeded in destroying the majority of the real progress made in Bosnia-Hercegovina in the last 13 years."

On the other hand the two diplomats add that “Chairman of the Bosnian Presidency Haris Silajdžic has frequently made statement on the need to abolish the two entities that comprise Bosnia-Hercegovina, and the need to create an undivided country not made up of federal units.“ “Poisonous relations and clashes between the two of them are at the heart of the current crisis in Bosnia-Hercegovina,“ which is why “doubts and fears have revived that were the basis for the start of the war in 1992,“ states the text.

…as well EU and Nato

On 27th Oct. 2008 EU’s foreign policy chief Javier Solana said in Brussels that the EU has warned politicians in Bosnia they are jeopardising the country’s Euro-Atlantic integration with the heated nationalist rhetoric. “We are concerned about the rhetoric which is growing and this rhetoric cannot contribute to the objective of getting Bosnia and Herzegovina more engaged with the European Union and Euro-Atlantic institutions,”.

Solana met NATO Secretary General Jaap de Hoop Scheffer at the regular NATO-EU meeting, while the situation in Bosnia and Herzegovina was the main focus of discussions. The NATO chief expressed his concern about the heated statements by some politicians in the country. “The situation in Bosnia and Herzegovina is of course secure and stable but the political rhetoric leads to concern,” Scheffer said. “We will have to address and we will address,” he added.

Last week the EU Enlargement Commissioner, Olli Rehn, said Bosnia has made “a significant step forward” by signing a key pre-membership deal called the Stabilisation and Association Agreement on June 16. “The EU could initial the Stabilisation and Association Agreement last December and sign it in June because the country's political leaders pulled together and reached consensus on the main conditions, particularly police reform. This proves that progress can be achieved and crises overcome, when the political will exists,”. “However, this consensus has since collapsed and reforms halted,” … “Nationalist rhetoric ahead of the October local elections was a factor in this deterioration. Yet, the country's political problems run much deeper.” Rehn said in his speech.

My view

The recent past of Bosnia-Herzegovina is violent and there was not only one brutal side – there was three of them. This past has its impact today and real truth behind successful propaganda about events of war 1992-95 is still unclear. (Note: same remarks about this one may find from my previous article “Opening Bosnian X-files”, check my Archives:Blog ).

The worries of top politicians have good base. It is not anymore dispute between Serbs and Bosniaks, this year has showed serious dissension between Bosniaks and Croats which may be related to rise of radical Islam in Balkans. (Note: I wrote a couple of articles about this earlier October, check my Archives:Blog).

One may have seen pictures where Bosnian Muslims (Bosniaks) and Bosnian Croats have been busy rioting again following the defeat of Croatia by Turkey in the Euro 2008 football match. The Bosniaks supported Turkey, the Croats Croatia. Meanwhile when Serbia plays Bosnia, Bosnian Serbs root for Serbia. This gives quite clear picture about national identity and multi-ethnic ideals – or lack of them. Can any country survive without some minimal mutual self-identification across its citizens as a whole? If the shared non-ethnic Bosnian identity is taking steps backwards does this not mean that this artificial western desk-drawer plan is doomed to fail? I am afraid so but maybe it is loss only for those top level designers not for local population.

More my articles about Balkan and Caucasus events one may find from my BalkanBlog .

29

10

2008

Did one word launch Nato bombings to Serbia?

Former Italian FM Lamberto Dini says the 1999 NATO military intervention against Serbia could have been avoided. According to this, the 78 days of attacks would have been averted "if a single word had been removed from the agreement which was offered at the Rambouillet conference". The problem was one adjective and Serbia insisted that the word “military” be taken out of the agreement leaving only “international presence” in Kosovo, but the United States insisted that the NATO gets permission to enter the province, Dini said while addressing students at the Bocconi University in Milan. (Sources Tanjug and B92 Oct.28th2008)

Rambouillet

Rambouillet negotiations were the decisive moment to go either for peace or war in Kosovo. The Rambouillet Agreement - Interim Agreement for Peace and Self-Government in Kosovo - includes two parts – the political part and the implementation part. The later part has two appendix A and B. By the end of the first round of Rambouillet in February, the Serb side had agreed to the essentials of a political deal. Agence France Presse (2/20/99) quoted a U.S. official as saying that the "political part" of a peace accord "is almost not a problem, while the implementation part has been reconsidered many times." The situation was same to last days of peace.

If I remember right Serbs were accepting political part but not the Appendix B which in reality was giving NATO and the West unlimited access to move around the entire country – not only Kosovo province - , to use airwaves, and radiowaves etc like in occupied country. There is also some conspiracy theories about that negotiators were not even aware about Appendix B and when it came on table it was so designed that Serbs could only reject it. The idea with this was to show Serbs as the pro-war nation and to justify Nato aggressions with this cause.

Rambouillet agreement (draft) can be found from here .

Bombings

Dini said also that in the crisis that followed, Italy advocated that the bombing be limited strictly to military objectives, but that Pentagon wanted a blank permission for all targets, Italy's ANSA news agency has reported. Nato bombings hit in Serbia 33 hospitals and 480 education facilities as well one (China) embassy and a lot of civil infrastructure. Nato was bombing 78 days and one excuse to hit civilian targets was that bombings against military targets were so unsuccessful.

I could conclude that Rambouillet loaded the gun and firing started after - probably fabricated - Racak massacre. In Rambouillet Serbs were accepting UN peace presence, maybe the whole war could be avoided by selecting word peace instead military. But if there is no will and real motivations are hidden so maybe changing one word would not be enough.

More my articles about Balkans can be found from my Archive: Blog.

27

10

2008

Kosovo separatists are dreaming to occupy the north Kosovo

Former Kosovo PM Agim Ceku told reporters on Sunday 26th Oct. 2008, that the government in Priština should declare the northern part of Kosovo "a zone of special interest". "If this part of Kosovo is declared a zone of special interest, that means presence of state officials of Kosovo must be secured there. Those officials would work there and be the state authority of Kosovo,..., such measures in the Serb-dominated north which rejects Priština's authority would be "temporary".

Ceku, who is the leader of the Social Democratic Party, said the Thaci government has no concrete plan to spread its authority in the north. For his part, Ceku did no rule out using force to achieve this. "Use of force is the task of every security organ. I would not say use of violence, but of force, if necessary. The functioning of the state and government in every part of the country is the task of institutions, which have their instruments and powers. Force is one of those powers," he elaborated.

Ceku's wish is of course easy to understand in dreamworld he is living in. The fact de jure however is that acording highest international law (UNSC 1244, UN Charter etc.) Kosovo still is under Serbia's sovereignty, International Court of Justice is giving its opinion about province's unilateral declaration of independence btw asked by UN General Assembly.

The fact on the ground is that northern part of Kosovo is integrated to Serbia like it allways has been, as well those parts south of Ibar river, which are not ethnically cleansed by Kosovo Albanians. If this self-declared quasi-independent puppet-state wants to start again some new conflict in Balkans lets hope that international community does not go to the same trap than before.

More articles about Balkan and Caucasus politics one may find from my Archive: Blog.

26

10

2008

Serbia jumped to top ranking of attractive emerging markets

Recently I wrote here an article named ”Competitiveness of Balkans” where I sited a comprehensive annual survey “Global Economic Competitiveness Report 2008-2009” published by the World Economic Forum. The report has calculated sc. “Global Competitiveness Index Rankings” (GCI) 134 countries poled (Article and report can be found from here. Now I was reading a report of PricewaterhouseCoopers LLP about a ranking of attractive emerging markets, which approach some Balkan countries from different angle.

PricewaterhouseCoopers – one of the leading global companies on its field of activities – published now the second year of its EM20 Index (‘the PwC EM20 Index’) generated by PwC’s innovative Risk & Reward Model. The EM20 Index report one may find from here, and if link is not opening, copy/paste following http://www.pwc.co.uk/pdf/EM20_2008_report.pdf.

PwC EM20

In order to be considered for inclusion in the PwC EM20 Index, countries needed to meet certain criteria associated with emerging market status. These were as follows:

  • GDP per capita in 2007 less than $13,500 at market exchange rates;
  • population greater than 5m people in 2007; and
  • GDP at purchasing power parity in 2007 greater than $50m.

These criteria were set to identify countries with populations and resources of sufficient size to meet the needs of inward investors, while also having an appropriately low cost base. The criteria yielded a list of 50 countries.

Bulgaria and Serbia top three in Manufacturing index

The results for Bulgaria and Serbia – the second- and third-placed countries in the Manufacturing Index – illustrate the impact that significant changes in country risk premia can have on index rankings.

The two countries are similar in terms of wealth, population size and location – both being physically close to Germany. However, Serbia was placed 25th in 2004 whereas Bulgaria held the top ranking. At the time, Bulgaria was a candidate for membership of the European Union (which it joined in January 2007), while Serbia was emerging from a period of conflict and economic isolation. Thus Serbia’s move up the rankings to third place this year essentially reflects the fact that its political risk – an element contained within the country risk premium applied in the model – has more than halved over the intervening years. Another point to note is that Serbia’s corporation tax is set at a low level of 10%. For comparison, the corporation tax rate in Bulgaria is 15%.

Serbia jumped up 7th in Services index

Serbia was ranked outside the top 20 in 2004, but achieved seventh place in 2008. Its improvement largely reflects increasing GDP per capita, although its country risk premium remains relatively high. The country risk premium reduction reflects the improvements in political and economic stability as the country moves towards EU admission.

Surprising Serbia

PricewaterhouseCooper analyses the factors for Serbia’s success and concludes following:

One country that features prominently in this year’s PwC EM20 Index, both in the Manufacturing and Services Indices, is Serbia. This may be surprising given that the country is only starting to appear on many investors’ radars as it recovers from the conflicts of the 1990s. Nonetheless, GDP has grown by 5.5% on average since 2000 and FDI (Foreign Direct Investments) is growing as the government opens up the economy and international buyers overhaul recently privatised Communist-era manufacturing facilities. The level of annual FDI inflows has grown steadily in recent years.

PwC continues, that “one of the drivers behind Serbia’s growing potential attractiveness to foreign investors is the falling risk of investing in the country. Political risk is considerably lower than at the start of the decade, while improved legal and financial institutional frameworks make capital invested in Serbia more secure. As a result, investors are willing to accept lower returns on their capital, making viable greater numbers of potential Serbian investment opportunities. Of course, Serbia still experiences some underlying political uncertainty, its accession to the EU is not imminent and further investment in infrastructure is necessary, but many international investors show confidence in the market’s potential.

Different aspects of different reports

While reading different reports it is reasonable also think a little bit which are the motivations behind their statements. EU for example is making regularly their reports about development in western Balkan countries. The point of view with these reports is, how non-member-states of EU are developing their institutions and practices towards better integration with EU practices. So these political reports are same time reflecting the values, priorities, top level statements and ideals of EU.

Whit business orientated reports the angle is different. Statements, ideals and other diplomatic small-talk is on background, the core of reports is the value for companies and potential investors. When users of political reports are playing in their virtual sandbox the business is playing with their own hard currency and when making decisions they must rely so much as possible to real facts.

Regarding Serbia last year has showed increasing trust by investors to this country. US Steel has put their money to metal processing, last Summer Fiat started to invest manufacturing of motor vehicles and Gazprom is investing oil and gas. In service sector Telekom Austria is coming to telecommunications, Merrill Lynch real estate business and News Corporation to media sector.

Political development and events are catching many headlines but real progress can be found from the ground. After many negative news and reports it is promising to see this development gaining speed in real world.

More my articles about Balkan and Caucasus one may find from my Archives: Blog

25

10

2008

Competitiveness of Balkans

The World Economic Forum (WEF) published again a comprehensive annual survey “Global Economic Competitiveness Report 2008-2009”. Economic Forum together with its network of leading research institutes and business organisations in the countries covered by the report has calculated sc. “Global Competitiveness Index Rankings” (GCI) 134 countries poled.

The report takes into account a series of indicators in public and private institutions, macroeconomic stability, infrastructure, health, education, market and labour efficiency. The survey is designed to capture a broad range of factors affecting an economy’s business climate. The report also includes comprehensive listings of the main strengths and weaknesses of countries, making it possible to identify key priorities for policy reform.

The report is one of background information discussed in the first World Economic Forum on Europe and Central Asia will be held on 30 October – 1 November in Istanbul, Turkey.

Western Balkans

According mentioned report Slovenia has been ranked as the most completive economy in the Balkans. Slovenia’s GCI was 42 out of 134 countries polled followed Croatia (61), Greece (67), Romania (68), Bulgaria (76), Serbia (85), Macedonia (89), Bosnia-Herzegovina (107) and Albania (108). Other interesting rankings nearby Balkans are e.g. Czech Republic (33), Slovak Republic (46), Hungary (62), Georgia (90) and Moldova (95).

If compared to previous Competitiveness reports there is not dramatic changes during last five years. Only exception maybe is that both Slovenia and Croatia have passed Greece in these rankings. More information about Competitiveness and also about other WEF reports one may find from their weforum.

More my articles about Balkans and Caucasus one may find from my Archive: Blog.

23

10

2008

500.000 bodies or sign

Some of you may have been reading my earlier column "Do you hear Mr. Nobel rolling in his grave?" on 12th Oct.2008 (here). Now I was reading a shocking column by Dr. Jan Oberg, who is co-founder of Transnational Foundation for Peace and Future Research. The headline "Peace Laureate Ahtisaari endorsed terrorism" of his column tells quite a lot. One of the main points highlights Ahtisaari's mediator tactics when he is threatening President Milosevic that those whom Ahtisaari represented were willing to flatten Belgrade and to kill 500.000 people in a week unless President Milosevic does not sign his offer.

I really recommend you read this analytical article yourself. It can be found from here. If link does not open so copy/paste following address: http://www.transnational.org/Resources_Treasures/2008/Oberg_Ahtisaari_2.html

More about Kosovo conflict one may find from my Archive: BalkanBlog

22

10

2008

Different Approaches from Balkans towards Europe

Countries in Western Balkans have all some European Perspective. Slovenia is already in, Croatia is hoping to conclude its EU membership talks by the end of 2009, Macedonia has candidate status, membership applications from Montenegro, Albania and Bosnia-Herzegovina are in cue, Serbia (with or without Kosovo or part of that) has the Stabilization and Association Agreement (SAA) but not yet into force. For me it is interesting to see two different approach – or aspects from Balkans towards Europe namely a political one and the technical one.

SAA agreement and implementation of integration program related to that are a huge administrative challenge including all sectors of society politics and law, which after implementation should be compatible with EU. With this technical process maybe more important for EU membership is political trends and challenges both inside EU as well related to states of Western Balkans.

Croatia

The European Commission is set to give Croatia next month a conditional date for concluding EU membership talks by the end of 2009 despite French pressure against any new commitment on enlargement, EU sources say. They said the French EU presidency had lobbied Brussels strongly against giving Zagreb even an indicative timetable after Commission President Jose Manuel Barroso made the pledge earlier this year to Prime Minister Ivo Sanader. (Reuters in National Post, Tue 21st Oct.2008)

Croatia hopes to actually join the European Union in 2010. But France and Germany insist there can be no further expansions of the 27-nation bloc until all member states ratify a reform treaty designed to strengthen its creaking institutions. According unnamed EU sources the EU Enlargement Commissioner Rehn the Commission will not give Macedonia, which has EU candidate status, green light to start accession talks next year and is also seeking to delay membership applications from Montenegro, Albania and Bosnia in hopes that Serbia, seen as central to Balkan stability, will arrest a key war crimes suspect and join its neighbours on the EU track.

Some EU officials, speaking on condition of anonymity, said they had misgivings about fast-tracking Croatia. They argue that Zagreb faces on a lesser scale the same problems of corruption, organised crime and a weak justice system as Bulgaria, which many EU countries think was admitted prematurely in 2007. If this were purely about how well Croatia is doing, it would take another two or three years," the senior source said. "Sanader still doesn't get it," another EU source said. "He still thinks that a diplomatic offensive will achieve it without having to do all the painful reforms." (Reuters in National Post, Tue 21st Oct.2008)

Serbia

Serbia’s Stabilisation and Association Agreement (SAA) was signed April 2008. Parallel to the SAA negotiations Serbia started its National Strategy for the whole process of European integration with goal to reach membership status by 2012. If/when Serbia gets status of an EU membership candidate the mentioned National Programme (NPI) is coming one of the key documents of the government for future. It serves as reform guide, base of Government’s annual work plans etc. but most of all well prepared and detailed information on planned reforms not for European Commission/EU but for the Serbian society. (Both documents – SAA and NPI - can be found from my BalkanBlog' [Document library.

EU Enlargement Commissioner Olli Rehn says that 2009 will be the year of the Balkans, even if the Lisbon Treaty blockage impedes further EU enlargement. If Hague Chief Prosecutor Serge Brammertz gives a positive report on Serbia’s cooperation with the Tribunal, the Stabilization and Association Agreement (SAA) may come into force, and it would be realistic to work towards Serbia obtaining candidate status before the end of 2009, Rehn said. (B92, 21st Oct.2008)

EU has encouraged Serbia to start implementing its obligations from the Interim Trade Agreement – a part of the Stabilization and Association Agreement (SAA), so as to "with practical and concrete measures speed up the progress on Serbia's European path". However, the government in Belgrade has earlier announced its readiness to "unilaterally implement" the provisions of these deals. Although the Council of Ministers has still to unblock the Interim Trade Agreement with Serbia, the government has decided to begin applying – unilaterally implement - it from January 1st 2009.

Benchmarking – Best Practice

Technically EU candidate can conclude accession talks when/if it meets several technical standards. They include all social aspects and actions like e.g. judicial reform, stronger action against corruption and organised crime, and reform of big compensated factories in line with EU state aid rules. This technical approach I would describe as “benchmarking" in which organizations evaluate various aspects of their processes in relation to sc. “Best Practice” within their own sector. This then allows organizations to develop plans on how to make improvements usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to challenge their practices.

What makes the situation however political is, that term “Best Practice” is often a misused. It is frequently used to support politically correct ideals which, in reality take no account of individual need or circumstances. In this sense the ensuing practice is far from 'best' when the resulting effects are contrary to the real ideal situation. It is also used to prevent challenges to rules and systems that are, in reality, not best practice.

Technical vs. political Approach

Today it seems that Croatia has counted on previous good will of Catholic Germany, Austria and Italy who were backing its independence already early days 90s without having to do “those painful reforms”. Serbia’s approach has been almost the opposite. There has been minimal amount of good will in EU towards Serbia even technically the country maybe has been better prepared for EU than e.g. Bulgaria. And as said Serbia is starting to implement Trade Agreement even unilaterally.

Which approach is better? I would claim that in bottom line all is about politics. It was political question to accept Bulgaria to EU with loose standards. It can be political question not to accept Serbia to EU on some excuse or other (Hague cooperation, border dispute, Kosovo etc.) despite how well they implement SAA. It can be also political question not to take Croatia to EU if all enlargement will be frozen due the economical reasons, the lack of money or creating a third way for EU wannabies (like new models to integrate Turkey).

Before mentioned Serbia's National Programme is one of the key documents of the government for future. It serves as reform guide, base of Government’s annual work plans etc. but most of all well prepared and detailed information on planned reforms for EU. From my point of view the key question is that Serbia should use this document for the Serbian society, not because of possible EU membership but even without that status, to improve living conditions of Serbs in or outside EU.

More my articles one may find from my BalkanBlog which also includes some related documents and link list.

20

10

2008

High pressure to fabricate Racak reports

Forensic dentist Helena Ranta says that officials of the Ministry for Foreign Affairs had tried to influence the content of her reports in 2000, when Ranta was commissioned by the European Union to investigate the events of Racak in Kosovo. Ranta put forward her allegations on Wednesday October 15th at the publication of her biography in Helsinki.

More than 40 Albanians were killed in the village of Racak in January 1999. The investigation by Ranta’s working group was very charged from the beginning. It was commonly assumed that Serb forces had perpetrated a massacre, which helped persuade NATO to launch bombings of Yugoslavia in the spring of 1999.

According to Ranta, in the winter of 1999 William Walker, the head of the OSCE Kosovo monitoring mission, broke a pencil in two and threw the pieces at her when she was not willing to use language about the Serbs.sufficiently strong language about the Serbs. [HS15/10/2008

There is a widespread belief, that Walker's role in Racak was to assist the KLA in fabricating a Serb massacre that could be used as an excuse for military action. The theory was that the KLA had gathered their own dead after the battle, removed their uniforms, put them in civilian clothes, and then called in the observers.

Walker’s background

Walker was U.S. ambassador to El Salvador in November 1989 when six leading Jesuit priests, their housekeeper, and her daughter were dragged from their beds and murdered by the Salvadoran Army. The killings were carried out by the Atlacatl Battalion, which was recruited, trained, and deployed by the U.S. military, supposedly in order to improve the Salvadoran Army's human rights performance. The Atlacatl was responsible for the worst atrocities of the entire war.

Walker first emerged in the Iran-Contra Scandal as the right-hand man of Oliver North and Elliott Abrams in illegal arms shipments to the Contras out of Ilopango airbase in El Salvador. Before that, he was deputy chief of mission at the embassy in Honduras when U.S. authorities were recruiting officers from Somoza's deposed National Guard to establish the Contras, and forming military death squads that murdered hundreds of Honduran workers, labor organizers and students. Information about Mr. Walker’s background one may find e.g. from article “Meet Mister Massacre” by Mark Ames and Matt Taibbi here.

Some remarks

Biography of Mrs. Ranta is one more example about political aspect in modern time's information wars. Similar examples from last year are interview of former Haague Tribunal spokeswoman Florence Hartmann (see my article "Opening Bosnian X-files" 12th Aug.2008 from my Archives:BalkanBlog) - as well the book of her former boss del Ponte describing e.g. organ trafficking of Serb civils by Albanian mafia - are giving quite disgusting picture about “realpolitik” behind noble statements of international community.

With this kind of now public exposures I would like to draw quite clear conclusion which is that latest mid-90s the western powers had decided heir position against the Serbs.

First there was case of Srebrenica July 1995, which launched publicly US support to Bosnian Muslims with claims of massacre of 8000 civilians (later few thousand was found, some of them were died years before, some of those 8000 returned alive few years later etc).

Second they were silent about massive ethnic cleansing of Serbs from Krajina (more in my article "Operation Storm" 5th Aug.2008 [here).

Third there was Racak case which launched Nato bombings 1999.

The story - manipulation public by mainstream media with fabricated reports for political aims - continued later this decade in Iraq operation and partly Georgia case (stories started with Russian invasion 8th Aug.2008 when in reality Georgia made attack to civil targets 7th Aug.2008, also fabricated pictures of Reuters came soon pubic).

After all this it is hard to believe on the other hand to official reports of states/international organizations and on the other hand the neutral or investigative journalism in sc. free press. Especially alarming it is now to read reports about nuclear program of Iran - what is true and are big players again starting new unnecessary war with false evidence.

More my articles from Balkans and Caucasus one may find from my Archives:BalkanBlog.

18

10

2008

Powerplay behind newest Cold War

Georgia 08/08/08 is the date when headlines in Western mainstream media started to tell how big, bad aggressive Russia attacked to tiny, democratic, good Georgia. After that the West continued accusations about occupation a free sovereign state started rethink enforcing its frontlines around Russian border in new cold war era. Al this despite the fact, that day earlier 7th August 2008 Georgia had started the moths before planned war against its separatist province (look my article “OSCE report fault Georgia - one trivial statement more from EU summit” 4th Sept.2008 from my [BlogArchive|). All this despite he fact, that USA had already showed the way how to break international law e.g. by bombing Kosovo and orchestrating the quasi-independence of that separatist province.

While speaking about new confrontation between East and West the (mostly western) political commentators have used first nice, warm words like freedom, democracy, sovereignty, humanitarian catastrophe to justify their planned harder actions to response Russia’s aggression. However if we scrub the soft spoke for dummies – sorry for public – we can find the hard reality and bigger game behind recent headlines of Caucasus or Balkan events. I try next to highlight few aspects with this power play.

Pipes

First element I would like to mention is energy. Georgia is part of a NATO military alliance (GUAM) signed in April 1999 at the very outset of the war on Yugoslavia. It also has a bilateral military cooperation agreement with the US. These underlying military agreements have served to protect Anglo-American oil interests in the Caspian Sea basin as well as pipeline routes. (The alliance was initially entitled GUUAM, Uzbekistan subsequently withdrew and the name was changed to GUAM: Georgia, Azerbaijan, Ukraine, and Moldova). More you may find from my article 9th Sep.2008 "War on Pipes: Transport corridors as core of US-Russia confrontation" where is write about GUUAM and SRS (Silk Road Strategy Act). Article one may find from my BlogArchive.

To reduce reliance on Persian Gulf oil, the Bush Administration has sought to strengthen relations with other non-OPEC, oil-rich countries. For example when (then) Defense Secretary Rumsfeld visited Kazakhstan, his main agenda was to promise security assistance for Kazakhstan's oil pipelines and facilities on the Caspian Sea, where an estimated 7-9 billion barrels of oil were recently discovered (the largest oil discovery anywhere in 30 years). Azerbaijan, Georgia, and Turkey recently signed a U.S.-backed deal to build an oil pipeline to bring that oil to ports on the Mediterranean. The U.S. has military ties with each.

U.S. oil demand is huge and increasing. Today, the U.S. has less than 5 percent of the world's population, yet it consumes more than 25 percent of global oil production-about 20 million barrels per day (mbd). Oil is the dominant fuel in the U.S. energy market, meeting almost 40 percent of total U.S. energy needs. Most of this is consumed by the transportation sector. If current U.S. oil demand trends continue, by 2025, the US. will be consuming over 29 mbd. More larger and heavier cars and trucks- with bigger engines, driven more miles each year- will account for most of this growth. All tolled, today, the world is consuming a little over 80 mbd (30 billion barrels per year). By 2030, global demand is expected to grow by 50 percent to 120 mbd (45 billion barrels per year).

After August events in Georgia everything did not happen according US plan. Russia could warm its relationship with Azerbaijan which was clearly to seen when Dick Cheney made his travel around Caucasia and came back empty hands. Also the situation in Ukraine developed away from US hopes. Paul Goble concludes in his “Window on Eurasia” Sep. 5th 2008 following: “With Iran’s declaration that it opposes the construction of any undersea pipelines in the Caspian on "ecological grounds" and thus will block any delimitation of the seabed that allows for them and Baku’s decision not to back the West’s push NABUCCO project, Moscow can claim its first major political victory from its invasion of Georgia.”(Source).

These actions mean that the Russian government will now have full and uncontested control over pipelines between the Caspian basin and the West which pass through Russian territory and will be able either directly or through its clients like the PKK to disrupt the only routes such as Baku-Tbilisi-Ceyhan that bypass the Russian Federation.

Military-industrial complex

Second let me mention "military-industrial complex". When Russia’s invading forces choked roads into Georgia with columns of armoured vehicles and struck targets from the air, it instantly bolstered the case being made by some that the Defence Department isn’t taking the threat from Russia and China seriously enough. It was said that "Christmas Comes Early For the Military Industrial Complex”.

The Military-industrial Complex has been one of the biggest players in US foreign policy since President Eisenhower. Details about Iraq killing Iranians with US-supplied chemical and biological weapons significantly deepens our understanding of the current hypocrisy. It began with "Iraq-gate" when US policy makers, financiers, arms-suppliers and makers, made massive profits from sales to Iraq of myriad chemical, biological, conventional weapons, and the equipment to make nuclear weapons. Reporter Russ Baker noted, for example, that, "on July 3, 1991, the Financial Times reported that a Florida company run by an Iraqi national had produced cyanide some of which went to Iraq for use in chemical weapons and had shipped it via a CIA contractor." This was just the tip of a mountain of scandals.

A PBS Frontline episode, "The Arming of Iraq" (1990) detailed much of the conventional and so-called "dual-use" weapons sold to Iraq. The public learned from other sources that at least since mid-1980s the US was selling chemical and biological material for weapons to Iraq and orchestrating private sales. These sales began soon after current Secretary of State, Donald Rumsfeld traveled to Baghdad in 1985 and met with Saddam Hussein as a private businessman on behalf of the Reagan administration. In the last major battle of the Iran-Iraq war, some 65,000 Iranians were killed, many by gas.

Coming back to present days one could easily find out how the US government borrows heavily to cover its off-the-charts defence spending—$587 billion this year. Spending in Iraq and Afghanistan is from 2.9 - 5.0 bn$ per week or 280.000 - 500.000 $ per minute.

The five largest American Defence contractors are Lockheed Martin, Boeing, Northrop Grumman, Raytheon and General Dynamics. They are being followed by Honeywell, Halliburton, BAE Systems and thousands of smaller defence companies and subcontractors. Some, like Lockheed Martin in Bethesda (Maryland) and Raytheon in Waltham (Massachusetts) draw close to 100 percent of their business from defence contracts. Some others, like Honeywell in Morristown (New Jersey), have important consumer goods divisions. All, however, stand to profit when expenditures on weapons procurements increase. In fact, U.S. defence contractors have been enjoying big Pentagon budgets since March 2003, i.e. since the onset of the Iraq war. As a result, they have posted sizable increases in total shareholder returns, ranging from 68 percent (Northrop Grumman) to 164 percent (General Dynamics), from March '03 to September '06.

For war profiteers, soldiers returning maimed or in caskets, and an over $500 billion Pentagon budget paid for by the taxes of ordinary citizens, are externalities -- costs and consequences borne by others.

NATO became even more threatening to Russia because, at the same time, the alliance shifted its mission from defending the soil of member countries to offensive missions outside the treaty area - for example, bombing Bosnia, Kosovo, and Serbia.

The trend toward autocracy in Russia is maybe horrible for some Russian interest groups, but it is little threat to the United States. Even autocracies have legitimate security concerns, and Russia has been invaded several times through Eastern Europe, which is why the Russians are worried about a hostile alliance on its borders. Empirical evidence shows that authoritarian regimes aren't necessarily externally aggressive - for example, the dictators in Burma - and that democracies are no less belligerent than autocracies in their foreign policies. In fact, data show that the most aggressive nation on the planet after World War II has been the United States - not the Soviet Union - with more than 100 military or covert interventions in other countries.

If we make contrast to today’s’ financial turmoil one should remember following. Wall Street analysts concur that "war is good for business" particularly during a period of "economic slowdown". The top five U.S. defence contractors generated almost $129 billion in revenues and $8 billion in profits in 2006, double the revenue and profits in 2000 when George Bush became President. I bet that they want this to continue.

Lobbyists

Third there are lobbyists. Their business turnover is minimal compared two above mentioned elements but they are important glue between business and public affairs. Lobbyists can channel business money as donations or bribes to political figures or parties who then can facilitate the needs of donors.

In Georgia case most famous is Randy Scheuneman. Top McCain foreign policy advisor, Randy Scheuneman, was paid $200,000 recently by Georgia for consulting services, about one day before McCain issued a policy statement backing and emboldening the Republic of Georgia in its grab for disputed regions. And it now appears that McCain may have signalled that the US would essentially have Georgia's back if it tried to assert possession of the territories. Since 2004 Scheuneman got $900.000 from Georgia. Recently US promised over 1 bn$ taxpayers money to Georgia - god investment I must say, for Georgians.

In the mid-1990s at the stint of the Clinton administration the United States launched the process of involving “former Soviet satellite nations” into both the European Union and NATO with an eye at securing a more efficient control over their political activities. The rapid expansion of the North Atlantic alliance was a part of the strategy of a “new American age” worked out by R.Cheney and his team. In 1996, Bruce Jackson, one of Cheney’s close friends and a top manager of the military-industrial corporation “Lockheed–Martin” took the reins of the influential lobbyist organisation “American Committee on NATO Expansion”. Bruce Jackson was appointed as head of the US Committee on NATO by President Clinton and put in charge of integrating the Eastern European countries into NATO in spite of assurances that had been given to Soviet leader Mikhael Gorbachev that this would not be done. This integration involved selling US weapons systems to these countries so that they would be compatible with ours.

Lobbying can have also win-win effect to players. E.g. Bruce Jackson founded the Committee for the Liberation of Iraq in 2002, a few months after retiring from Lockheed Martin. One can image, as the war in Iraq grinds on at a cost of some $250-400 million per day, and another contractor-heavy organization, the Iran Policy Committee, calls for a pre-emptive strike against Iran, how US Foreign politics is guided.

The New Defence Agenda (NDA) is part of Brussels growing military-industrial complex. Set up in 2003, it is funded by arms producers Lockheed Martin and BAE Systems in order to promote higher European military spending. Others arms industry lobby groups include the European Association of Aerospace Industries (AECMA) and the European Defence Industries Group (EDIG). The arms industry is also using the Lisbon Agenda and competitiveness to argue their case for increasing the EU?s current defence spending of about 3 percent of GDP to the US level of 6 percent.

New and Old Europe

Discussing about transatlantic relationship with Russia I can see a triangle drama with "western" camp. US has found stalwart allies from "New Europe" Polish-Lithuanian tandem as its spearhead, who are serving as America's watchmen on Europe's periphery as well cannon fodder in demanding theatres. The tandem with some wingmen (Estonia, Latvia) have their role in expanding Western military ties to East Europe and checking Russia's energy grip on Europe.

We have "Old Europe" like Germany, Italy some cases Spain and France also, who are more interesting about strategic political and business partnership with Russia. Old Europe countries are also developing bilateral cooperation with Russia when they see its advantages.

While some "New Europe" countries still have some post-Soviet trauma, US is tied to her self-caused conflicts and "Old Europe" is wondering how the Union will look in future, it is demanding task to find a common approach to relationship with Russia. While Russia also considers its options I can only hope that some neutral forum for dialogue could be found.

Yes I hope that one or more forums can accommodate different dialogs. Europe schizophrenia will be cured either in some common forum or with two rail development where new and old Europe maybe are going with different speeds and maybe also different directions - the trauma symptoms maybe are similar in new and old Europe countries but the cause/motivations differ. Post-Soviet new ones maybe have more emotional cause for their actions, US maybe have more economical priorities as well some old EU states.

More my articles one may find from my [BalkanBlog]

15

10

2008

Western Balkans with EU, European or global perspective

Some day ago I was reading here Cafebabel an interesting article "Europe: between pragmatism and utopia" by Igor Caldeira. Few core questions there were following - "Dutch, French, Irish - synonymous with ‘eurosceptic’? Does 'No' mean 'No Europe', 'No to Europe' or 'No to this Europe'? What other Europe could there be if there is just one geographical, political, historical and cultural reality?". I have been wondering same questions from my Balkan point of view related especially to Western Balkan's alternative ways with strategic alliances.

All non-EU states in western Balkans have been sad to have European perspective e.g. that sooner or later BiH, Serbia, Montenegro, Croatia, Macedonia, Albania and even Kosovo - inside or outside Serbia - would be future EU members. I can not avoid some questions, like

  • Can EU any more absorb new members and simultaneously keep alive some its ideas?
  • Are European perspective and EU membership the same?
  • Are benefits from joining to EU bigger or less than being outside it?
  • Is there any alternative strategic alliances to EU?

Today´s EU

EU was meant to be an association of independent regions that pursue their own policies and serve the interests of their people. Today´s EU has Parliament sitting and travelling between Strassbourg and Brussels with zero power and authority. Instead Commission, their army of bureaucrats, lobbyists from different interest groups are keeping EU as their playground. Due the high risk of corruption EU tries to limit damages with Auditors (In Brussels I once heard that there is more auditors in EU than people who are really implementing some practical task). The Parliament´s Puppet democracy is showed by interpreting all speeches/documents to all EU languages and verse, sad that no one is listening or reading them.

EU is today already so big that democracy and efficiency are in constant conflict. When Ireland said no to Lisbon Treaty in democratic referendum it same time paralysed EU structure. If EU is enlarging even more the decision making mechanisms and maybe the tasks of EU should be reconstructed again - it should find the core functions again and cut off extra branches, trim the budget and administration. Today EU member states are paying more or less their taxpayers money to common budget and are receiving more or less back through some 500 different EU programmes. When common bureaucracy, Puppet democracy and corruption are taking increasing share so on the field one sees less money and actions. The bottom line is that EU´s ability to absorb enlargement is questionable and even if it could come bigger what´s the idea to join to it.

European perspective vs. EU membership

One common custom is to equate European perspective and EU membership. I totally oppose this equivalence. Almost half of Europe´s territory and 30 % population is not EU members. Does anyone believe, hat e.g. Switzerland and Norway have less European perspective than member-states. Western Europe shows only one part of wholeness of our continent, eastern Europe and also Byzantium are part of continent´s history. Perspective can point East as well than West.

EU has brought many benefits to its citizens - visa-/passport-free traveling and healthy competition over borders, more market economy instead protectionism, comprehensive multidimensional standards numbers of public and private fields. EU has also offered a forum to manage conflicts with peaceful manner.

However some of these benefits can be applied also without EU. For instance one can travel from Finland or Sweden (EU) more easy to Norway (non-EU) than from Hungary to Romania (both EU). Some standards outside EU can be better or worse than inside but one should remember that those standards are decided closer in one state and are not some compromise made in Brussels.

Being outside EU does not mean to be outside EU financing. EU has e.g. its border programmes with neighbors to finance transnational projects and also some inside programmes are open to non member-states. Economically inside EU each member has different case if they have surplus or deficit and how much with their EU budget, the same is valid future new members.

With this article I have highlighted some negative aspects with EU. In case of my home-country Finland I must confess that I have enjoined about many positive things EU has brought to my country, many projects and wider view which could be impossible without membership. Critical questions I have highlighted to break simple black and white picture which is familiar in simplified mainstream media in western Balkans. The question is too important to let it only to join or not level.

Some options for strategic alliances

So big question is if there is any alternative strategy to joining EU? I would like to see following options to taken into consideration in all non-member-states of western Balkans :

  • Strategic linkages to the BRIC countries - Brazil , Russia , India , China. These countries are representing rising economical, cultural and political powers (and markets) in three continent while Western Europe and USA are more and more going towards stagnation or moderate development at most.
  • Association Agreement without goal to come member-state could be good alternative and realistic also. Because EU can not absorb Turkey this kind of arrangement can be the most used alternative to enlargement by membership. Every country can negotiate their own association and cooperation agreement and highlight those topics which are important each individual state. Cooperation can be very wide with most of EU member benefits, of course also EU gains its share about cooperation e.g. with logistics through trans-European transport (roads, railways, energy, telecommunication ...) corridors.
  • European 'Free Port Zone' - models could be e.g. Kaliningrad, Singapore, Luxemburg, San Marino. This position can make non-member state popular with people who want to live in Europe but do not like high taxes and with businesses that engage in international manufacturing, trade and commerce.

EU is not miraculous power which brings economic and other development with membership status. More important is what people are doing in each western Balkan state. They can develop their societies with or without EU depending individual needs and priorities. If they can develop good country for themselves (not because EU) it can be good country also for outsiders and e.g. diaspora can start to invest back to their old home-country like one can see now for instance in Russia.

More about Balkan/Caucasus topics one may ind from my BlogArchive

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