Regional Approach to Development Challenges of South East Europe

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Regional Approach to Development Challenges of
South East Europe

• Belgrade
• 15 June, 2009

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• Context
• The crisis will not detour the Balkans. The
  downturn is providing a major test for political
  and economic institutions that have little to no
  experience with such a magnitude of challenges.
  Jens Bastian, ELIAMEP
• Past good economic results were based on
  increased domestic demand coupled with large
  negative savings and investment balances, cheap
  international capital, low investment in
  equipment and low exports. Even without the
  crisis, this model of growth is not sustainable
  in the long run. Jan Truszczynski, DG
  Enlargement
• Indeed, no one in Brussels seems even to have
  realized that the entire Balkan peninsula is
  rapidly turning into a cobweb of frozen
  conflicts... Marcus Tanner, Balkan Insight
• High level political contacts in the WB
  intensified. Mixed signals on sectoral
  cooperation expansion and deterioration.

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• The RCCs Objectives
• Contributing to the enhancement of stability,
  security, mutual respect and open dialogue in
  South Eastern Europe.
• Rebranding the image of SEE and instilling the
  notion of regional cooperation.
• Acting as key interlocutor and operational link
  between the EU and the SEECP with regard to
  project generation and prioritization
  particularly in the context of the European
  Commissions Multi-Beneficiary Instrument for
  Pre-Accession Assistance (MB IPA).
• Coordinating international political, technical
  and financial support.
• Presenting a regional forum for dialogue among
  different countries, international organizations,
  and other partners.

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• Achievements
• All Western Balkan countries have either got
  (Croatia and the FYR of Macedonia) or applied for
  the candidate status (Montenegro and Albania), or
  signed Stabilization and Association Agreements
  with the EU (Serbia and BiH).
• Albania and Croatia became NATO members.
• Numerous (around 40) regional cooperation
  structures and initiatives have been developed
  since 1999.
• Successful transition from Stability Pact to the
  RCC - SEECP becoming the major political
  framework.

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• Activities of the RCC in the period May 2008 -
  May 2009
• Completed transition process from the Stability
  Pact for SEE to RCC
• Opening of the RCC Liaison Office in Brussels and
  nomination of the Special Envoy for relations
  with the Presidency of the European Council
• Political consultations with RCC members
• RCC presentations held in the SEE capitals
• Mapping of national priorities regarding regional
  cooperation in SEE
• Coordination and streamlining of SEE regional
  initiatives and structures
• Initiated networking process among RCC
  Secretariat, members from SEE, EC and IFIs
  (including Multi-beneficiary IPA and IFIAG)
• Preparation of the Project Portfolio of the RCC
• Cooperation with other regional organizations and
  initiatives (CEI, BSEC, AII, Danube Cooperation
  Process).

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RCC PLATFORM
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• RCC achievements
• Improved exchange of information, data and expert
  knowledge strengthened regional cooperation.
• Bringing together all relevant stakeholders when
  addressing specific issues, increasing
  cooperation efficiency and decreasing related
  costs.
• Added value in avoiding overlapping and
  duplication and in appropriate prioritization of
  Project Proposals.
• Raising awareness on sustainable development and
  its importance for the region.
• Facilitating fund raising for project
  implementation.

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• Challenges
• Proliferation of different support programs and
  regional initiatives.
• Institutional competition.
• Donor coordination.
• Coherence of the mechanism and deliverance of
  crisis assistance package.
• Discrepancy between regional ownership,
  leadership and regional program and project
  implementation capacity.
• Moving beyond dialogue to greater results
  orientation.

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• Risks
• Effects of the global economic crisis in the
  region
• Slowing down of the European integration process
  in the Western Balkans
• Deterioration of bilateral political relations in
  the region
• Fragility of the established regional structures.

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In its priority areas RCC will

• Act in a pro-active way based on a strategic
  approach and in accordance with national
  priorities, in particular regarding the EU
  accession.
• Develop regional programs to be supported by
  relevant international organizations and other
  donors.
• Help its SEE members and regional initiatives and
  task forces to acquire lacking knowledge and
  expertise in management of the project cycles.

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Scenario 1 speeding up and enriching SAPHigh EU
involvement in helping WB in institutional,
financial and sectoral terms long-term and
emergency measures

• Candidate status for all WB countries
• White Schengen list for all
• Fast and focused implementation of IPA funds
• Additional funds for the WB (budgetary support
  and project oriented)
• Coordinated IFIs approach to big regional
  infrastructural projects
• Regional coordination in developing strategic
  approach and implementation of key projects

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Scenario 2 slowing down and enriching
SAPBridging the enlargement fatigue for 7-10
years and coping with the crisis effects with
strategic approach of keeping intensity of
functional integration and decided level of
financial assistance, while postponing
institutional integration

• Focus on trade, energy, transport, JHA, security
  and BHC
• Keeping business involvement (to support trade,
  FDI, SMEs) and sustainability of the financial
  systems in the region
• Keeping regular dialogue between EU and WB at the
  high level
• Strengthening regional mechanisms of cooperation

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Scenario 3 postponing and freezing SAPNo
change opting for status quo

• Economic collapse in the region
• Massive social unrest
• Security challenges
• Deconstruction of established regional mechanisms