Title

Democracy in Central & Eastern Europe

Wednesday, July 26, 2017
2:00pm
Capitol Visitors Center, Room SVC-215
Washington, DC
United States
Renewing the Promise of Democratic Transitions
Official Transcript: 
Moderator(s): 
Name: 
Erika Schlager
Title Text: 
Counsel for International Law
Body: 
Commission on Security and Cooperation in Europe
Name: 
Martina Hrvolova
Title Text: 
Program Officer, Central Europe and the Balkans
Body: 
Center for International Private Enterprise
Witnesses: 
Name: 
Andrew Wilson
Title: 
Managing Director
Body: 
Center for International Private Enterprise
Statement: 
Name: 
Peter Golias
Title: 
Director
Body: 
Institute for Economic and Social Reforms, Slovakia
Statement: 
Name: 
Andras Loke
Title: 
Chair
Body: 
Transparency International, Hungary
Statement: 
Name: 
Marek Tatala
Title: 
Vice-President
Body: 
Civil Development Forum, Poland
Statement: 
Name: 
Jan Surotchak
Title: 
Regional Director for Europe
Body: 
International Republican Institute
Name: 
Jonathan Katz
Title: 
Senior Resident Fellow
Body: 
German Marshall Fund

On July 26, 2017, the U.S. Helsinki Commission held a briefing on “Democracy in Central and Eastern Europe: Renewing the Promise of Democratic Transitions.” This briefing followed a series of roundtable discussions and other events earlier in the year relating to this region, demonstrating the Helsinki Commission’s interest in Central and Eastern Europe.

Erika Schlager, Counsel for International Law for the U.S. Helsinki Commission, welcomed panelists Andrew Wilson, the Managing Director of the Center for International Private Enterprise (CIPE); Peter Goliaš, Director of the Institute for Economic and Social Reforms in Slovakia; András Lőke, Chair of Transparency International in Hungary; and Marek Tatała, Vice-President of the Civil Development Forum in Poland. Jan Surotchak, Regional Director for Europe at the International Republican Institute (IRI), and Jonathan Katz, Senior Resident Fellow at the German Marshall Fund of the United States (GMF) added Washington policy perspectives. The discussion was moderated by Martina Hrvolova, Central Europe and the Balkans Program Officer at CIPE.

The panelists provided a background on democracy in the regional context, as well as on the specific case studies of Slovakia, Hungary and Poland.

Andrew Wilson observed that new democracies of Central and Eastern Europe face serious stresses that raise questions about the resilience of their democratic transitions and threaten to undo the remarkable progress the countries made during the last three decades. He argued that the problems in the region do not stem from the failure of democracy, but rather a failure to more actively pursue its consolidation.

Peter Goliaš offered a brief overview of the current state of democracy in Slovakia. He described the findings of a recent public opinion poll that paint a very bleak picture of how Slovakians see the current state of democracy in their country. He argued that a main reason for people’s dissatisfaction with democracy has been the perception that politicians do not work in the public’s interest, but in the interest of the oligarchs. He projected that current political trends will lead to the continued slow deterioration of Slovak democracy. To stop this deterioration, Goliaš proposed several short- and long-term measures that he believes would strengthen the rule of law and civil society in Slovakia.

András Lőke cited the reports of several influential NGOs to describe the current state of Hungarian democracy. While both Freedom House and Transparency International still give moderate scores to Hungary on the level of freedom and corruption, Hungary is trending downward on every indicator that were examined. Lőke argued that the most telling figures were found in the World Economic Forum’s Global Competitiveness Report, which ranked Hungary very poorly based on an assessment of the rule of law and the level of corruption. After identifying the challenges facing Hungary today, Lőke outlined a list of solutions to these problems that would ultimately enable civil society to reassert its role in maintaining transparency and accountability in governance, and generally increase the crucial engagement of civil society in public affairs.

Marek Tatała assessed the state of democracy in Poland, arguing that while the country remains a democracy, its current political leadership is weakening rather than strengthening its democratic development. Tatała observed that laws on the constitutional tribunal and on the organization of courts, and the rapid nature of the legislative process, have been harmful to the rule of law in Poland. He underlined the need for a higher level of engagement of the business community in public affairs, and a better quality of education that is more focused on civic engagement and economic literacy.

Following up on the three country case studies, Jan Surotchak presented the findings of a recent poll conducted as part of IRI’s Beacon Project. The findings revealed a number of disturbing trends in Central and Eastern Europe, including waning support for core transatlantic institutions; tensions over the nature of European identity; and a deep discontent with socioeconomic challenges in the region. Most importantly, the study confirmed that there is a strong correlation between socioeconomic disparities in these countries and their vulnerabilities to Russian influence.

Finally, Jonathan Katz emphasized the need to increase the United States’ bilateral and joint diplomatic engagement and development assistance efforts in the region to support continued democratic and economic transition. More specifically, Katz presented four core strategies that he argues are needed, which included the establishment of joint US-EU mechanisms to strengthen development cooperation and coordination in the entire OSCE region.

The panelists agreed that any external development assistance should primarily support the work of civil society in Central and Eastern Europe, with a special focus on communication campaigns. Particular emphasis should be given to the improvement of the education system with a focus on promoting discussions with students. Marek Tatała also argued that given the fairly strong ties of these countries’ leaders with the United States, a stronger voice from the current US Administration regarding negative developments in Slovakia, Hungary, and Poland would be also welcome and effective.

With regard to action from Congress, panelists argued that resources for development assistance could come in the form of a congressional authorization bill. Panelists also noted that to be effective, any external development fund that targets NGOs or the civil society must be monitored by donors to avoid corruption. Panelists observed that the Congress could play a particularly important role in providing oversight of such assistance programs and making sure that their spending follow very strict guidelines.

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    This hearing focused on recent constitutional changes to the Hungarian Constitution which has brought concerns from the United States and the European Union. Recently, Hungary has instituted sweeping and controversial changes to its constitutional framework, effectively remaking the country’s entire legal foundation. In addition to constitutional changes, there have been some bills passed without the proper democratic spirit and has brought concerns about the trajectory of democracy in that country. The witnesses raised the changes that have created the majority government into a nearly one-party rule structure and compared such actions to President Madison’s written exposé in the Federalist Papers number 47.

  • Hungary

    Mr. President, as the Senate chair of the Helsinki Commission, I have a longstanding interest in Central Europe. For many years the Helsinki Commission was one of the loudest and clearest voices to speak on behalf of those oppressed by communism and to call for democracy, human rights, and freedom from Soviet oppression. It has been a great triumph and joy to see the peoples of this region free from dictatorship. Over the past two decades I have been profoundly heartened as newly freed countries of Central Europe have joined the United States and NATO and have become our partners in advocating for human rights and democracy around the globe. Leadership on those issues may be especially important now as some countries in the Middle East undertake transition, the outcome of which is far from certain. Even in Europe, in the western Balkans, there is a crying need for exemplary leadership, not backsliding. Americans know from our own history that maintaining democracy and promoting human rights are never jobs that are finished. As my friend and former colleague Tom Lantos said, "The veneer of civilization is paper thin. We are its guardians, and we can never rest.'' For some time I have been concerned about the trajectory of developments in Hungary, where the scope and nature of systemic changes introduced after April 2010 have been the focus of considerable international attention. At the end of November, Hungary was back in the headlines when Marton Gyongyosi, a member of the notorious extremist party Jobbik and also vice chairman of the Parliament's Foreign Affairs Committee, suggested that Hungarian Jews are a threat to Hungary's national security and those in government and Parliament should be registered. The ink was barely dry on letters protesting those comments when another Hungarian Member of Parliament, Balazs Lenhardt, participated in a public demonstration last week where he burned an Israeli flag. The fact is that these are only the latest extremist scandals to erupt in Budapest over the course of this year. In April, for example, just before Passover, a Jobbik MP gave a speech in Parliament weaving together subtle anti-Roma propaganda with overt anti-Semitism blood libel. After that, Jobbik was in the news when it was reported that one of its members in Parliament had requested and received certification from a DNA testing company that his or her blood was free of Jewish or Romani ancestry. At issue in the face of these anti-Semitic and racist phenomena is the sufficiency of the Hungarian Government's response and its role in ensuring respect for human rights and the rule of law. And the government's response has been, to say the least, wanting. First, it has been a hallmark of this government to focus on blood identity through the extension of Hungarian citizenship on a purely ethnic basis. The same Hungarian officials have played fast and loose with questions relating to its wartime responsibilities, prompting the U.S. Holocaust Memorial Museum to issue a public statement of concern regarding the rehabilitation of fascist ideologues and political leaders from World War II. I am perhaps most alarmed by the government's failure to stand against the organized threats from Jobbik. For example, in late August a mob estimated at 1,000 people terrorized a Roma neighborhood in Devecser, taunting the Romani families to come out and face the crowd. There were reportedly three members of Parliament from the Jobbik party participating in that mob, and some people were filmed throwing bricks or stones at the Romani homes. The failure to investigate, let alone condemn such acts of intimidation, makes Prime Minister Orban's recent pledge to protect "his compatriots'' ring hollow. Of course, all this takes place in the context of fundamental questions about democracy itself in Hungary. What are we to make of democracy in Hungary when more than 360 religious organizations are stripped of their registration overnight and when all faiths must now depend on the politicized decision-making of the Parliament to receive the rights that come with registration? What are we to make of the fact that even after the European Commission and Hungary's own Constitutional Court have ruled against the mass dismissal of judges in Hungary's court-packing scheme, there is still no remedy for any of the dismissed judges? What is the status of media freedom in Hungary, let alone the fight against anti-Semitism, if a journalist who writes about anti-Semitism faces possible sanction before the courts for doing so? What are we to make of Hungary's new election framework, which includes many troubling provisions, including a prohibition on campaign ads on commercial radio and TV, onerous new voter registration provisions, and limits on local election committees, which oversee elections? I find it hard to imagine that Jews, Roma, and other minorities will be safe if freedom of the media and religion, the rule of law, the independence of the Judiciary, and the checks and balances essential for democracy are not also safeguarded. With that in mind, I will continue to follow the overall trends in Hungary and the implications for the region as a whole.  

  • Helsinki Commission Welcomes Unveiling of Berlin Memorial for Romani Genocide Victims

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Those efforts, however, bogged down over questions regarding the location of the proposed memorial and the content of inscriptions. (Concerns raised by the artist over materials and weather-related construction complications also contributed to interruptions.) German government officials also suggested some delays were caused by differing views among Romani groups, particularly regarding the inscriptions; some critics of the delays suggested there was an insufficient sense of ownership and political will on the part of the government. Senator Ben Cardin (MD), Co-Chairman of the Commission, noted the singular role of Romani Rose, Chairman of the Central Council of German Sinti and Roma, and “his tireless work to ensure that Romani victims of genocide are remembered and honored.” Rose, who lost his grandparents at Auschwitz and Ravensbrueck, was a driving force to see the memorial completed. Cardin added, “I am deeply heartened that efforts to build this memorial, underway for over a decade, have finally been realized.” German government officials at the most senior level attended the unveiling of the genocide memorial, including Chancellor Angela Merkel, President Joachim Gauck, Bundestag President Norbert Lammert, Bundesrat President Horst Seehofer, and Berlin Mayor Klaus Wowereit. Former President Richard von Weizsacker, in spite of advanced years and frail health, was also present. Federal Minister of Culture Bernd Neumann described the memorial “a pillar of German remembrance.” U.S. Ambassador to Germany Patrick Murphy and Special Envoy for Holocaust Issues Douglas Davidson represented the United States. Dr. Ethel Brooks, who has served as a public member with the U.S. Delegation to the 2011 and 2012 OSCE Human Dimension Implementation Meetings, also attended the ceremony. The memorial, designed by Israeli artist Dani Karavan, was widely hailed as a deeply moving testimony to the genocide of Romani people. Dutch Sinto survivor Zoni Weiss addressed the hundreds of people who attended the event. As a 7-year-old, Weiss narrowly avoided being placed on the Westerbork transport from the Netherlands due to the intervention of platform policeman, but watched as his immediate family was sent to Auschwitz where they perished. The unveiling ceremony was also accompanied by a week of events in Berlin focused on Romani history, culture and contemporary issues. Gert Weisskirchen, former German Member of the Budestag and former OSCE Personal Representative on Anti-Semitism, organized a round-table focused on contemporary challenges faced by Roma. In her remarks at the event, Chancellor Merkel also acknowledged the on-going struggle for human rights faced by Roma throughout Europe, saying bluntly, “let’s not beat around the bush. Sinti and Roma suffer today from discrimination and exclusion.” Romani Rose warned more pointedly, “In Germany and in Europe, there is a new and increasingly violent racism against Sinti and Roma. This racism is supported not just by far-right parties and groups; it finds more and more backing in the middle of society.” Background The Nazis targeted Roma for extermination. Persecution began in the 1920s, and included race-based denial of the right to vote, selection for forced sterilization, loss of citizenship on the basis of race, and incarceration in work or concentration camps. The most notorious sites where Roma were murdered include Auschwitz in Nazi-occupied Poland, the Jasenovac camp in the so-called Independent State of Croatia, Romanian-occupied Transnistria, and Babi-Yar in Nazi-occupied Ukraine. In other parts of German occupied or German-allied territory, Roma were frequently killed by special SS squads or even regular army units or police, often left in mass graves. Many scholars estimate that 500,000 Roma were killed during is World War II, although scholarship on the genocide of Roma remains in its infancy and many important archives have only become available to a broader community of researchers since the fall of communism. In recent years, for example, Father Patrick Desbois has helped document the location of 800 WWII-mass graves in Ukraine and elsewhere in the former Soviet Union, including 48 mass graves of Roma. German postwar restitution legislation and its implementation effectively excluded almost all Romani survivors. Those most directly responsible for actions against Roma escaped investigation, prosecution and conviction. Several officials responsible for the deportations of Roma before and during the war continued to have responsibility for Romani affairs after the war. In 1979, the West German Federal Parliament acknowledged the Nazi persecution of Roma as being racially motivated. In 1982, Chancellor Helmut Schmidt recognized that the National Socialist persecution of Romani people constituted genocide. The first German trial decision to take legal cognizance that Roma were genocide victims during the Third Reich was handed down in 1991. In 1997, Federal President Roman Herzog opened a Documentation and Cultural Center of German Sinti and Roma, saying “The genocide of the Sinti and Roma was carried out from the same motive of racial hatred, with the same intent and the same desire for planned and final annihilation as that of the Jews. They were systematically murdered in whole families, from the small child to the old man, throughout the sphere of influence of the Nazis.” At the 2007 OSCE Human Dimension Implementation Meeting, Thommas Hammarberg, Council of Europe Commissioner for Human Rights, observed that, “[e]ven after the [ . . . ] Nazi killing of at least half a million Roma, probably 700,000 or more, there was no genuine change of attitude among the majority population towards the Roma.”

  • Hungary

    Mr. President, a year ago, I shared with my colleagues concerns I had about the trajectory of democracy in Hungary. Unfortunately, since then Hungary has moved ever farther away from a broad range of norms relating to democracy and the rule of law. On June 6, David Kramer, the President of Freedom House who served as Assistant Secretary of State for Democracy, Human Rights and Labor for President George W. Bush, summed up the situation. Releasing Freedom House's latest edition of Nations in Transit Kramer said: "Hungarian Prime Minister Viktor Orbán and Ukrainian president Viktor Yanukovych, under the pretext of so-called reforms, have been systematically breaking down critical checks and balances. They appear to be pursuing the `Putinization' of their countries.'' The report further elaborates, “Hungary's precipitous descent is the most glaring example among the newer European Union (EU) members. Its deterioration over the past five years has affected institutions that form the bedrock of democratically accountable systems, including independent courts and media. Hungary's negative trajectory predated the current government of Prime Minister Viktor Orbán, but his drive to concentrate power over the past two years has forcefully propelled the trend.'' Perhaps the most authoritative voice regarding this phenomenon is the Prime Minister himself. In a February 2010 speech, Viktor Orbán criticized a system of governance based on pluralism and called instead for: “a large centralized political field of power . . . designed for permanently governing.'' In June of last year, he defended his plan to cement economic policy in so-called cardinal laws, which require a two-thirds vote in parliament to change, by saying, "It is no secret that in this respect I am tying the hands of the next government, and not only the next one but the following ten.'' Checks and balances have been eroded and power has been concentrated in the hands of officials whose extended terms of office will allow them to long outlive this government and the next. These include the public prosecutor, head of the state audit office, head of the national judicial office, and head of the media board. Those who have expressed concerns about these developments have good reason to be alarmed. I am particularly concerned about the independence of the judiciary which, it was reported this week, will be the subject of infringement proceedings launched by the European Commission, and Hungary's new media law. Although there have been some cosmetic tweaks to the media law, the OSCE Representative on Freedom of the Media has argued that it remains highly problematic. Indeed, one expert has predicted that the most likely outcome of the new law will be to squeeze out reporting on corruption. Hungary also adopted a new law on religion last year that had the stunning effect of stripping hundreds of religions of their legal recognition en masse. Of the 366 faiths which previously had legal status in Hungary, only 14 were initially granted recognition under the new law. Remarkably, the power to decide what is or is not a religion is vested entirely and exclusively in the hands of the legislature, making it a singularly politicized and arbitrary process. Of 84 churches that subsequently attempted to regain legal recognition, 66 were rejected without any explanation or legal rationale at all. The notion that the new framework should be acceptable because the faiths of most Hungarian citizens are recognized is poor comfort for the minority who find themselves the victims of this discriminatory process. This law also stands as a negative example for many countries around the world just now beginning tenuous movement towards democracy and human rights. Finally, a year ago, I warned that “[i]f one side of the nationalism coin is an excessive fixation on Hungarian ethnic identity beyond the borders, the other side is intolerance toward minorities at home.”I am especially concerned by an escalation of anti-Semitic acts which I believe have grown directly from the government's own role in seeking to revise Hungary's past. Propaganda against the 1920 Treaty of Trianon, which defines the current borders of Hungary, has manifested itself in several ways. Most concretely, the Hungarian government extended citizenship on the basis of ethnic or blood identity--something the government of Viktor Orbán promised the Council of Europe in 2001 that it would not do and which failed to win popular support in a 2004 referendum. Second, the government extended voting rights to these new ethnic citizens in countries including Romania, Serbia, Slovakia and Ukraine. This has combined with a rhetorical and symbolic fixation on “lost” Hungarian territories--apparently the rationale for displaying an 1848 map of Greater Hungary during Hungary's EU presidency last year. In this way, the government is effectively advancing central elements of the agenda of the extremist, anti-Semitic, anti-Roma Jobbik party. Moreover, implicitly--but unmistakably--it is sending the message that Hungary is no longer a civic state where political rights such as voting derive from citizenship, but where citizenship derives from one's ethnic status or blood identity. The most recent manifestation of this revisionism includes efforts to rehabilitate convicted war criminal Albert Wass and the bizarre spectacle of the Hungarian government's role in a ceremony in neighboring Romania--over the objections of that country--honoring fascist writer and ideologue Joszef Nyiro. That event effectively saw the Speaker of the Hungarian Parliament, Laszlo Kover; the Hungarian State Secretary for Culture, Geza Szocs; and Gabor Vona, the leader of Hungary's most notoriously extremist party, Jobbik, united in honoring Nyrio. Several municipalities have now seen fit to erect statues honoring Miklos Horthy, Hungary's wartime leader, and the writings of Wass and Nyiro have been elevated onto the national curriculum. It is not surprising that this climate of intolerance and revisionism has gone hand-in-hand with an outbreak of intolerance, such as the anti-Semitic verbal assaults on a 90-year old Rabbi and on a journalist, an attack on a synagogue menorah in Nagykanizsa, the vandalism of a Jewish memorial in Budapest and monuments honoring Raoul Wallenberg, the Blood Libel screed by a Jobbik MP just before Passover, and the recent revelation that a Jobbik MP requested--and received--a certificate from a genetic diagnostic company attesting that the MP did not have Jewish or Romani ancestry. We are frequently told that Fidesz is the party best positioned in Hungary to guard against the extremism of Jobbik. At the moment, there seems to be little evidence to support that claim. The campaign to rehabilitate fascist ideologues and leaders from World War II is dangerous and must stop. Ultimately, democracy and the rights of minorities will stand or fall together. Hungary is not just on the wrong track, it is heading down a dangerous road. The rehabilitation of disgraced World War II figures and the exaltation of blood and nation reek of a different era, which the community of democracies--especially Europe--had hoped was gone for good. Today's Hungary demonstrates that the battle against the worst human instincts is never fully won but must be fought in every generation.

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  • Good Governance

    Economic and Environmental Dimension Implementation Meeting Session 3: Good Governance Before I begin, I’d like to thank the panelists today for their excellent and informative presentations. The United States has viewed with keen interest the evolving discussions in recent years on what the OSCE’s priorities should be in the Economic and Environmental Dimension. As our friend and colleague Mr. Svilanovic pointed out during last year’s Vienna Review Conference, we appear to have come to an appreciation that good governance is the key linking theme across the entire second dimension. The Maastricht Strategy is very clear on this point: “Good public and corporate governance and strong institutions are essential foundations for a sound economy, which can attract investments, and thereby enable States to reduce poverty and inequality, to increase social integration and opportunities for all, and to protect the environment. Good governance at all levels contributes to prosperity, stability and security.” As we consider the implementation of our second dimension commitments, however, we should keep in mind why it is important to implement those commitments. The global economic downturn continues to put extreme pressure on people and governments across the OSCE region. To be sure, some countries have weathered the storm better than others. Still, no country can be forever immune to market forces, and even within those that have done well, there are always citizens left behind. This is certainly the case in the United States, and for this reason President Obama is focused intently on how best to put those Americans without a job back to work. We all know that trade and investment are critical drivers of economic growth. Indeed, recognizing this important reality, the Obama Administration has launched the National Export Initiative, which seeks to deepen our strategic trade relationships around the world, recognizing that 85 percent of world GDP growth will occur outside the United States in the coming few years. As we encourage more American businesses – large and small – to embrace international trade, seek opportunities in new markets, and make strategic investments that will lead to increased global trade flows, we are keenly aware of the challenges and costs posed by official corruption, weak institutions, and lack of respect for property rights, including intellectual property. Weak governance and lack of transparency constitute non-tariff barriers to trade, which we have committed ourselves to eliminating. Furthermore, the same issues that deter trade and investment also work against comprehensive security: a lack of transparency in governance leads to diminished confidence that problems and disputes will be addressed in a fair and impartial manner. Without trust and confidence in public institutions, there is little incentive for investors and companies to pursue trade deals or direct investment in those economies. The effect is stagnating economic performance, which, as we have seen in the past several months and years, can lead to political upheaval. The United States Government is deeply committed to fostering good governance and transparency in its political and economic institutions. President Obama has made the global fight against corruption a top priority. As he has noted, “In too many places, the culture of the bribe is a brake on development and prosperity. It discourages entrepreneurship, destroys public trust, and undermines the rule of law while stifling economic growth.” The real world costs of corruption and weak institutions should not be underestimated. The World Bank estimates that more than one trillion dollars in bribes are paid each year out of a global economy of approximately 30 trillion dollars. That's an incredible three percent of the world’s economy. In 2009, companies lost nearly $25 billion to companies willing to pay bribes in deals for which the outcome is known. And bribery is especially costly for small and medium-size enterprises (SMEs): a separate study has shown that up to 25 percent of SME operating capital in companies operating internationally is diverted to corruption. That is a staggering figure that illustrates how corruption diverts scarce resources to thoroughly unproductive ends. Corruption is a global problem that knows no borders. And that’s why corruption demands a truly global response – one that knows no limits on collaboration. The Obama Administration is doing its part to implement its obligations under the OECD Anti-Bribery Convention by enforcing the U.S. Foreign Corrupt Practices Act (FCPA) strictly and fairly. We are determined to ensure that U.S. businesses do not contribute to corruption in foreign markets. At the same time, we are determined to do what we can to assist them in the fight against foreign corruption, and against the high risk and significant costs of corruption in such markets. Regrettably, at this stage, the lack of enforcement of domestic bribery laws, and of foreign bribery laws by many nations that are Parties to the OECD Anti-Bribery Convention is extremely troubling and raises concerns about a lack of political will. Governments can and should prosecute both those who give bribes and those who receive them, both at home and abroad. And the OSCE should continue to encourage participating States to adopt and enforce rigorous anti-bribery regimes. Of course, the fight against corruption is not simply a law enforcement matter; rather it can also be a significant – if not the most significant – non-tariff barrier all companies face. Accordingly, the U.S. Department of Commerce and the International Trade Administration (or ITA) are committed to working with our trading partners to level the playing field and to promote transparent and corruption-free markets globally. Our work to promote clean and ethical business environments occurs at both the multilateral and bilateral level. At the multilateral level, the ITA is pressing its counterparts to lead by example and to implement comprehensive anti-corruption measures. In addition to our work through the OECD, the United States has been working diligently to persuade the G20 countries to adopt a comprehensive anti-corruption action plan, which includes a commitment focused on adoption and robust enforcement of anti-bribery laws, implementation of the UN Convention Against Corruption, greater engagement with the private sector, and support for transparency mechanisms, to name a few. Many of these commitments require our G20 partners to enact and implement new laws and preventive measures. The United States, at ITA’s initiative, in particular, took the lead on proposals relating to the private sector and also on whistleblower protection, within the G20. In the United States, whistleblowers play a crucial role in helping to enforce anti-corruption law. This principle is also embodied in international conventions. Articles 12 and 13 of the UN Convention require States Parties to prevent corruption in the private sector and promote the fight against corruption with the business community and civil society. Unless governments can protect whistleblowers, it is unlikely that they can identify or address systemic causes of corruption. The United States believes robust whistleblower protection should be an essential part of any good governance initiative in the OSCE, and I was encouraged to hear Ambassador O’Leary indicate that this will be an area of focus under the Irish Chairmanship. The U.S. Department of Commerce has also been committed to fostering strong private sector integrity as an integral part of promoting good governance in markets worldwide. Companies are global corporate citizens, and as such, can work collectively and with governments to foster trust, and promote transparency. I hope that some our work may provide a useful model for the OSCE to consider as it looks to embrace good governance and anti-corruption as a priority for the second dimension, a goal we fully support, and which I am personally committed to supporting. For example, the ITA has championed business ethics and corporate governance reform since the early 1990s, following the fall of the Berlin Wall. Our Business Ethics Manual has been translated into Chinese, Spanish and Russian and is still one of the most widely used resources on this important topic. We have partnered with business associations and chambers of commerce to develop collective action and business ethics program in many markets. Our work on business ethics has grown. This past year, the ITA has focused on trying to heighten awareness of good governance, transparency and business ethics in sectors of vital importance to many economies – by taking a “sectoral” approach to combating corruption and promoting good business practice, the challenge of dealing with corruption becomes less daunting. The ethical issues specific to different industries vary greatly – and there is no one-size-fits-all approach to the problem. Within the G20, for example, the United States, at the initiative of the U.S. Department of Commerce, has taken the lead in calling for the G20 to endorse additional sectoral approaches to fighting corruption, beyond the Extractive Industries Transparency Initiative (EITI). We have asked G20 governments, for example, to consider supporting the Construction Sector Transparency Initiative (COST) – a new multistakeholder initiative, developed by the World Bank. COST uses similar approaches to EITI to promote greater transparency in public infrastructure projects and government procurement. I hope that the OSCE might similarly consider COST and other multistakeholder approaches to promoting transparency under the Irish chairmanship. Within APEC, the ITA has focused on developing new ethical principles for key sectors within the APEC region. I am pleased to report that under the APEC SME working group, we have coordinated a project with APEC countries and businesses to develop principles of business ethics in the construction, medical devices and biopharmaceutical sectors. These voluntary principles are meant to be used by businesses and trade associations – large andwithin the OSCE framework and the EEDIM, we might also consider focusing on business ethics in specific sectors of interest to all of our economies. I want to close by suggesting some activities to take the theme of good governance and transparency forward. In addition to encouraging the OSCE to formally endorse the Extractive Industries Transparency Initiative—a move that would send an important signal about this body’s commitment to the principles of good governance and transparency—the U.S. encourages us to explore whether there are additional sectoral initiatives that merit support from the OSCE, including the Construction Sector Transparency Initiative. The United States Government also strongly supports the Irish Chair’s goal to develop a Statement or Declaration of Transparency Principles to help guide our governments in their future activities. I want to encourage us to consider new models of bilateral cooperation to promote good governance such as the model Mr. Murray just discussed, leading to a public-private initiative in the Russian power generation sector. We at the U.S. Department of Commerce are working closely with the Center for Black Sea/Caspian Studies at American University to potentially convene a conference in May of next year that would seek to address the challenge of developing mechanisms to ensure good governance and transparency, while also balancing the goals of protecting national security and accelerating economic development faced by the countries of the Caucasus and Central Asia, as they seek to assert their role as a gateway between Europe and Asia. In addition, the conference will also focus on specific market access challenges to regional integration and economic development in the Caucasus and Central Asia such as transparency in Government procurement and privatization, and trade facilitation challenges, including customs and lack of regional harmonization. It is our hope that the OSCE will join us for this event – focused on critical areas such as transport and infrastructure – to work on tangible ideas for projects and collaborations in the OSCE region. We look forward with great interest to the 20th Economic and Environmental Forum, where we will delve deeper into all the facets of good governance. We also thank the Lithuanian Chairman-in-Office for  ensuring that their draft Ministerial Council decision on Energy Security incorporates transparency in the energy sector – in our view, considering the vital role that energy plays in modern economic life, there can be no confidence, and thus no security, without energy transparency. In the year ahead, we envision an even broader focus on transparency principles across the entire spectrum of economic and environmental activities, and will work with all of our colleagues in the OSCE to make that vision a reality. Thank you, Mr. Moderator.  

  • Commissioner Camuñez's Remarks on Good Governance

    Economic and Environmental Dimension Implementation Meeting Session 3: Good Governance Before I begin, I’d like to thank the panelists today for their excellent and informative presentations. The United States has viewed with keen interest the evolving discussions in recent years on what the OSCE’s priorities should be in the Economic and Environmental Dimension.  As our friend and colleague Mr. Svilanovic pointed out during last year’s Vienna Review Conference, we appear to have come to an appreciation that good governance is the key linking theme across the entire second dimension.  The Maastricht Strategy is very clear on this point: “Good public and corporate governance and strong institutions are essential foundations for a sound economy, which can attract investments, and thereby enable States to reduce poverty and inequality, to increase social integration and opportunities for all, and to protect the environment.  Good governance at all levels contributes to prosperity, stability and security.”  As we consider the implementation of our second dimension commitments, however, we should keep in mind why it is important to implement those commitments. The global economic downturn continues to put extreme pressure on people and governments across the OSCE region.  To be sure, some countries have weathered the storm better than others.  Still, no country can be forever immune to market forces, and even within those that have done well, there are always citizens left behind.  This is certainly the case in the United States, and for this reason President Obama is focused intently on how best to put those Americans without a job back to work.  We all know that trade and investment are critical drivers of economic growth.  Indeed, recognizing this important reality, the Obama Administration has launched the National Export Initiative, which seeks to deepen our strategic trade relationships around the world, recognizing that 85 percent of world GDP growth will occur outside the United States in the coming few years.  As we encourage more American businesses – large and small – to embrace international trade, seek opportunities in new markets, and make strategic investments that will lead to increased global trade flows, we are keenly aware of the challenges and costs posed by official corruption, weak institutions, and lack of respect for property rights, including intellectual property. Weak governance and lack of transparency constitute non-tariff barriers to trade, which we have committed ourselves to eliminating.  Furthermore, the same issues that deter trade and investment also work against comprehensive security: a lack of transparency in governance leads to diminished confidence that problems and disputes will be addressed in a fair and impartial manner.  Without trust and confidence in public institutions, there is little incentive for investors and companies to pursue trade deals or direct investment in those economies.  The effect is stagnating economic performance, which, as we have seen in the past several months and years, can lead to political upheaval.    The United States Government is deeply committed to fostering good governance and transparency in its political and economic institutions.  President Obama has made the global fight against corruption a top priority.  As he has noted, “In too many places, the culture of the bribe is a brake on development and prosperity.  It discourages entrepreneurship, destroys public trust, and undermines the rule of law while stifling economic growth.”    The real world costs of corruption and weak institutions should not be underestimated.  The World Bank estimates that more than one trillion dollars in bribes are paid each year out of a global economy of approximately 30 trillion dollars.  That's an incredible three percent of the world’s economy.   In 2009, companies lost nearly $25 billion to companies willing to pay bribes in deals for which the outcome is known.  And bribery is especially costly for small and medium-size enterprises (SMEs): a separate study has shown that up to 25 percent of SME operating capital in companies operating internationally is diverted to corruption.  That is a staggering figure that illustrates how corruption diverts scarce resources to thoroughly unproductive ends. Corruption is a global problem that knows no borders.  And that’s why corruption demands a truly global response – one that knows no limits on collaboration.  The Obama Administration is doing its part to implement its obligations under the OECD Anti-Bribery Convention by enforcing the U.S. Foreign Corrupt Practices Act (FCPA) strictly and fairly.  We are determined to ensure that U.S. businesses do not contribute to corruption in foreign markets.  At the same time, we are determined to do what we can to assist them in the fight against foreign corruption, and against the high risk and significant costs of corruption in such markets.   Regrettably, at this stage, the lack of enforcement of domestic bribery laws, and of foreign bribery laws by many nations that are Parties to the OECD Anti-Bribery Convention is extremely troubling and raises concerns about a lack of political will.  Governments can and should prosecute both those who give bribes and those who receive them, both at home and abroad.  And the OSCE should continue to encourage participating States to adopt and enforce rigorous anti-bribery regimes. Of course, the fight against corruption is not simply a law enforcement matter; rather it can also be a significant – if not the most significant – non-tariff barrier all companies face.  Accordingly, the U.S. Department of Commerce and the International Trade Administration (or ITA) are committed to working with our trading partners to level the playing field and to promote transparent and corruption-free markets globally.  Our work to promote clean and ethical business environments occurs at both the multilateral and bilateral level.  At the multilateral level, the ITA is pressing its counterparts to lead by example and to implement comprehensive anti-corruption measures.   In addition to our work through the OECD, the United States has been working diligently to persuade the G20 countries to adopt a comprehensive anti-corruption action plan, which includes a commitment focused on adoption and robust enforcement of anti-bribery laws, implementation of the UN Convention Against Corruption, greater engagement with the private sector, and support for transparency mechanisms, to name a few.  Many of these commitments require our G20 partners to enact and implement new laws and preventive measures.   The United States, at ITA’s initiative, in particular, took the lead on proposals relating to the private sector and also on whistleblower protection, within the G20.  In the United States, whistleblowers play a crucial role in helping to enforce anti-corruption law.  This principle is also embodied in international conventions.  Articles 12 and 13 of the UN Convention require States Parties to prevent corruption in the private sector and promote the fight against corruption with the business community and civil society.  Unless governments can protect whistleblowers, it is unlikely that they can identify or address systemic causes of corruption.  The United States believes robust whistleblower protection should be an essential part of any good governance initiative in the OSCE, and I was encouraged to hear Ambassador O’Leary indicate that this will be an area of focus under the Irish Chairmanship.   The U.S. Department of Commerce has also been committed to fostering strong private sector integrity as an integral part of promoting good governance in markets worldwide.  Companies are global corporate citizens, and as such, can work collectively and with governments to foster trust, and promote transparency.  I hope that some our work may provide a useful model for the OSCE to consider as it looks to embrace good governance and anti-corruption as a priority for the second dimension, a goal we fully support, and which I am personally committed to supporting. For example, the ITA has championed business ethics and corporate governance reform since the early 1990s, following the fall of the Berlin Wall.  Our Business Ethics Manual has been translated into Chinese, Spanish and Russian and is still one of the most widely used resources on this important topic.  We have partnered with business associations and chambers of commerce to develop collective action and business ethics program in many markets.   Our work on business ethics has grown.  This past year, the ITA has focused on trying to heighten awareness of good governance, transparency and business ethics in sectors of vital importance to many economies – by taking a “sectoral” approach to combating corruption and promoting good business practice, the challenge of dealing with corruption becomes less daunting.  The ethical issues specific to different industries vary greatly – and there is no one-size-fits-all approach to the problem.  Within the G20, for example, the United States, at the initiative of the U.S. Department of Commerce, has taken the lead in calling for the G20 to endorse additional sectoral approaches to fighting corruption, beyond the Extractive Industries Transparency Initiative (EITI).  We have asked G20 governments, for example, to consider supporting the Construction Sector Transparency Initiative (COST) – a new multistakeholder initiative, developed by the World Bank.  COST uses similar approaches to EITI to promote greater transparency in public infrastructure projects and government procurement.  I hope that the OSCE might similarly consider COST and other multistakeholder approaches to promoting transparency under the Irish chairmanship.     Within APEC, the ITA has focused on developing new ethical principles for key sectors within the APEC region.  I am pleased to report that under the APEC SME working group, we have coordinated a project with APEC countries and businesses to develop principles of business ethics in the construction, medical devices and biopharmaceutical sectors.  These voluntary principles are meant to be used by businesses and trade associations – large and small – to guide their ethical interactions with public officials and institutions.   I hope that within the OSCE framework and the EEDIM, we might also consider focusing on business ethics in specific sectors of interest to all of our economies.  I want to close by suggesting some activities to take the theme of good governance and transparency forward.  In addition to encouraging the OSCE to formally endorse the Extractive Industries Transparency Initiative—a move that would send an important signal about this body’s commitment to the principles of good governance and transparency—the U.S. encourages us to explore whether there are additional sectoral initiatives that merit support from the OSCE, including the Construction Sector Transparency Initiative.  The United States Government also strongly supports the Irish Chair’s goal to develop a Statement or Declaration of Transparency Principles to help guide our governments in their future activities. I want to encourage us to consider new models of bilateral cooperation to promote good governance such as the model Mr. Murray just discussed, leading to a public-private initiative in the Russian power generation sector.   We at the U.S. Department of Commerce are working closely with the Center for Black Sea/Caspian Studies at American University to potentially convene a conference in May of next year that would seek to address the challenge of developing mechanisms to ensure good governance and transparency, while also balancing the goals of protecting national security and accelerating economic development faced by the countries of the Caucasus and Central Asia, as they seek to assert their role as a gateway between Europe and Asia.  In addition, the conference will also focus on specific market access challenges to regional integration and economic development in the Caucasus and Central Asia such as transparency in Government procurement and privatization, and trade facilitation challenges, including customs and lack of regional harmonization.  It is our hope that the OSCE will join us for this event – focused on critical areas such as transport and infrastructure – to work on tangible ideas for projects and collaborations in the OSCE region. We look forward with great interest to the 20th Economic and Environmental Forum, where we will delve deeper into all the facets of good governance.  We also thank the Lithuanian Chairman-in-Office for ensuring that their draft Ministerial Council decision on Energy Security incorporates transparency in the energy sector – in our view, considering the vital role that energy plays in modern economic life, there can be no confidence, and thus no security, without energy transparency.  In the year ahead, we envision an even broader focus on transparency principles across the entire spectrum of economic and environmental activities, and will work with all of our colleagues in the OSCE to make that vision a reality. Thank you, Mr. Moderator.

  • Commissioner Camuñez's Opening Statement at the Economic and Environmental Dimension Implementation Meeting

    Economic and Environmental Dimension Implementation Meeting Opening Remarks On behalf of the United States, I would like to thank the Lithuanian Chairman-in-Office, Secretary General Zannier, Coordinator for Economic and Environmental Activities Svilanović, and of course our Austrian hosts for convening this inaugural Economic and Environmental Dimension Implementation Meeting and for providing a warm welcome to Vienna. It is an honor to be here today as head of the U.S. delegation to the OSCE, representing the U.S. Government in my capacity as an Assistant Secretary of Commerce for Market Access and Compliance (MAC) within the International Trade Administration, and as a Commissioner to the U.S. Helsinki Commission. As a Commerce Department Assistant Secretary for Market Access and Compliance, I am responsible for helping lead the effort to open new markets for U.S. companies, identifying and eliminating market access challenges such as non-tariff barriers to trade, and helping to monitor and enforce U.S. trade agreements and commitments. The work of the Environmental and Economic Dimension, especially that which focuses on transparency of markets and good governance, is closely aligned with the work we undertake in the International Trade Administration. I am here today to deliver the message that the U.S. Government is highly committed to making the second dimension even more effective and dynamic, and that we will do our part in ensuring that our economic and environmental commitments receive the same level of attention and scrutiny that those in the political-military and human dimensions currently enjoy. I will try to keep my remarks brief, but I think it is critical that we take a close look at the economic and environmental commitments as they were spelled out in the 2003 Maastricht Strategy. We still see Maastricht as the key blueprint for moving forward on all the  commitments that have come before, and in particular, note a number of areas where we could pursue significant, substantive action over the next few years to achieve measurable progress. Our commitments on economic cooperation have at their core the idea of connectedness to regional and global markets, to trade and investment networks, and to energy and transportation infrastructure, as a way to address emerging economic challenges and threats. In light of the global economic downturn, it is vital that we recommit ourselves to increasing cooperation through a variety of measures, including improving corporate governance and public management, eliminating unnecessary and discriminatory barriers to trade, continuing  to harmonize our regulations and standards where appropriate, taking further steps to combat financial crimes like bribery and money laundering, and increasing confidence through the incorporation of transparency principles in all of our public and private ventures. At the same time, in view of our progress made this year worldwide on  empowering women in the economy, first at the Invest for the Future Conference in Istanbul in January and most recently at the APEC Summit in San Francisco, we believe it is important to recognize the critical connection between women and strong economies, and to remove all barriers that prevent women from full and equal participation in the economy. I would like to focus my comments this morning on the subject of good governance, however. We have committed ourselves time and again to “good governance,” and while progress has been made, much work remains to be done. As stated in the 2003 Maastricht Strategy, achieving good governance will require a comprehensive, long-term strategic approach. In the view of the U.S. Government, good governance is the core theme within the economic and environmental dimension, and we are pleased that next year’s Forum will address the topic in a broad and detailed way. When we speak of good governance, we speak about governments having both the propensity and the competence to manage complex political and economic systems in a fair, fully inclusive, and transparent way. Anti-corruption is part of it, but not the whole picture. It’s about having transparent, clear and predictable legislative and regulatory frameworks that foster efficient and low-cost business formation and development, and most importantly allow and even encourage robust participation in the political and economic spheres by civil society. Let me say a few words about my agency’s past and current work in this area, reserving greater details and the highlights of a new proposal for Session III tomorrow. From 1998-2008, the U.S. Department of Commerce launched a Good Governance Program, focused on partnering with the public and private sectors in the countries of the former Soviet Union and Central-Eastern Europe. This work, focused on promoting sound corporate governance and business ethics, culminated in the publication of a Business Ethics Manual, a Commercial Dispute Resolution Handbook, and a Corporate Governance Manual translated into several languages and disseminated widely throughout the OSCE region. Today, we continue to work on numerous initiatives around the world, within multilateral fora such as APEC and the G20, which involve OSCE members, promoting consensus based principles focused on anticorruption. We have taken our business ethics work and branched out into new regions including Asia and Latin America. Despite a clear understanding of its importance, the lack of good governance and systemic corruption remain some of the single most important market access challenges for companies engaged in trade around the world. This is especially true for small and medium sized enterprises, which are the engine of economic growth and innovation throughout the world. The United States believes that addressing these issues can only lead to greater investment, economic prosperity and security. Over the next three days, we will discuss OSCE support for the Extractive Industries Transparency Initiative (EITI). I am pleased to report that the U.S. Department of Commerce played an important role in supporting the creation of the EITI in its initial phase. The OSCE now has a chance to follow in the steps of the G8 and G20, by endorsing the EITI, and I applaud the governments that have preceded the United States as implementers. The EITI is a great example of how shared commitments towards good governance and transparency in a vital sector to many countries can work and build sustained momentum and engagement between the private sector, governments and civil society. Tomorrow I will share more concrete information about the work that the U.S. Government and my Department have undertaken to promote good governance and to combat corruption. I am pleased to have an expert on business ethics and anti-corruption in the energy sector, as part of the U.S. delegation. Mr. Matthew Murray runs the Center for Business Ethics and Corporate Governance in St. Petersburg, Russia, and he’ll speak to you later about a good governance initiative involving public and private stakeholders in the power generation sector in Russia, which may serve as a model for similar programs in other OSCE countries. I am also pleased to have Kate Watters of Crude Accountability joining the U.S. delegation, who will provide some examples of how transparency is a critical component of enhancing security in the environmental sphere. A month ago, the Economic and Environmental Forum discussed the concept of sustainability and where efforts to promote sustainable practices stand in our region. Those discussions remind us that our commitments on sustainable development encompass a broad spectrum of activities related to efficiency, sound resource management, and the full involvement of all stakeholders in decision-making. Just to cite an example from the Prague Forum, we recognize that in order to further develop economies and markets in such varied areas as the Black Sea region and Central Asia we will need to address several problems: improving the efficiency of border crossings and building construction, tilting the energy mix towards cleaner fuels, harmonizing standards and practices across the region, and, just as critically, ensuring broad involvement of civil society in the decision-making on project proposal, design, and implementation. One thing that sets the OSCE apart from many other organizations addressing the environment is recognition of the clear connection between the environment and security. We recognize that many environmental disasters cannot be predicted or prevented. At the same time, greater transparency – through information sharing and civil society engagement – about possible security risks stemming from the environment will make it possible to prevent or mitigate more disasters, both natural and man-made. We also must recognize that failure to protect the environment is itself a security risk, putting increased pressure on populations facing dwindling resources of clean air and water, arable farmland, and adequate energy. Colleagues, The next three days provide a critical juncture and platform for finding consensus on measures that will improve our implementation of the OSCE commitments in the economic and environmental dimension. The Vilnius Ministerial is only a month and a half away; now is the time to summon the political will to find a way forward. We look forward to building consensus on decisions on energy security, to include good governance and transparency, and we welcome constructive dialogue on additional measures proposed on confidence-building initiatives and sustainable transport. We view these elements, along with sustainable development and protecting the environment, as the cornerstones of the Maastricht Strategy, and will be speaking about these over the next several days. Just a month ago, we found some convergence of opinion on discrete aspects of the second dimension. Let us expand that convergence to the entire dimension as we review our economic and environmental commitments over the next few days, with a view toward substantive deliverables for Vilnius. Thank you, Mr. Moderator.

  • Commemoration of the Anniversary of the Warsaw Uprising

    Mr. Speaker, as Chairman of the Helsinki Commission and Co-Chairman of the Poland Caucus, I have long been struck by the way in which history casts both long shadows and rays of light in Poland. I have had the privilege of traveling to Poland, one of America's closest allies, and was overwhelmed by the weight of history when I met with those who are building the Museum of the History of Poland's Jews. Institutions like this are not only critical for Poland's future generations, but for what all of us, around the world, can learn from Poland. Today, I rise today to commemorate the 67th anniversary of the Warsaw Uprising, a courageous act of defiance by the people of Poland against the brutal Nazi occupation during the Second World War. On August 1, 1944, the Polish Underground began its struggle to liberate Warsaw, to further weaken the collapsing German eastern front and to establish Polish sovereignty in response to the Red Army's advance to the city's outskirts. Despite the courage and fortitude of the Polish people, the Underground could not overcome the Nazis' determination to oversee the complete destruction of the Home Army and the city, bolstered by official orders and a directive that the massacre was to serve as a "terrifying example'' to Europe. More than 200,000 civilians and members of the Home Army were killed in Warsaw over a 63-day period. Between August 5 and August 8, the Nazis murdered more than 40,000 people--overwhelmingly civilians--in the Wola district of Warsaw alone. Survivors, describing the horror of the executions, told of the indiscriminate slaughter of thousands of women and children. Approximately 700,000 Warsaw residents were expelled from their homes and forced out of the city--many sent to death, labor, or POW camps. Hitler ordered that Warsaw should be razed to the ground; Heinrich Himmler declaring in the most chilling terms that Warsaw "must completely disappear from the surface of the earth.'' To that end, the Nazis systematically targeted buildings filled with deep meaning for the Poles, including cultural treasures, monuments, palaces, libraries, churches, and the Old Town. By the beginning of October, the Polish capitol was reduced to rubble--85 percent of the buildings in Warsaw had been destroyed. But from ashes come diamonds and, despite this barbaric campaign, the Polish desire for freedom and liberty could not be extinguished--not even by the decades of communist oppression which followed the end of the war. Such courage and resilience continues to define the Polish people. Today, Poland is a successful democracy and one of our strongest military allies. More to the point, Poland's leadership on issues related to democracy and human rights gives true meaning to the alliance concept of "shared values.'' Poland has tirelessly support democratic movements in Northern Africa and Eastern Europe, particularly in Tunisia, through democracy activists and transition experts, and Belarus. Poland has served as a regional force in the effort to encourage human rights and democracy in Belarus in the wake of the December 2010 post-election political crackdown, maintaining free media outlets that operate in Belarus and opening Polish universities to students expelled for pro-democracy activities. On July 1, Poland assumed the six-months rotating Presidency of the European Union. It can only strengthen our transatlantic alliance to have the EU led by a country that has accomplished so much over the past 20 years both political and economically. As it happens, Poland has one of the fastest growing economies in Europe and is the only EU country not faced with a recession amidst the global financial crisis. As chairman of the U.S. Helsinki Commission and co-chairman of the Congressional Poland Caucus, I commend Poland's leadership on democracy and human rights throughout the OSCE region and globally. Polish-American ties remain strong and steadfast because of such dedication to these common values. More than that, however, I have unwavering respect and admiration for the people of Poland, whose courage and determination in the face of so many historic tragedies--of which the Warsaw Massacre is only one example--is a source of continued inspiration.

  • Spotlight on Bosnia – Obstacles to Progress and Recommendations for the International Response

    This briefing addressed how politics in Bosnia are marked by increased nationalist rhetoric, which sometimes threatens the country’s peace, stability and territorial integrity, and the parties’ unwillingness to work constructively with the representatives of the international community, and the difficulties that have been faces since the October 2010 elections. Possible sources of this political impasse and possible course of action for the international community were also examined. Witnesses testifying at the briefing – including Clifford Bond, former U.S. Ambassador to Bosnia-Herzegovina and Vice President of the American University in Bosnia-Herzegovina; Kurt Bassuener, Senior Associate of the Democratization Policy Council; and Nida Gelazis, Senior Associate of European Studies Program at the Woodrow Wilson International Center for Scholars – provided several recommendations for improving the political situation in Bosnia, including a strong EU presence in the country, an emphasis on economic improvements, and basic reforms to improve the functionality of the Dayton state.

  • Democracy at Risk in Hungary

    Mr. President, this week in Budapest there are two events of particular interest to Americans. First, Hungary has unveiled a statue of President Ronald Reagan in front of the U.S. Embassy in honor of his contribution to the goal of ending communist repression and commemorating the 100th anniversary of his birth. Second, Hungary dedicated the Lantos Institute, named after Tom Lantos, our former colleague from the House of Representatives who worked tirelessly to promote democracy and human rights in the country of his birth. Former Secretary of State Condoleezza Rice and Secretary of State Clinton have represented the United States at these respective events. These gestures shine a light on Hungary's historic transformation as well as the close bonds between our two countries. Unfortunately, other developments in Hungary have cast a dark shadow over what should otherwise be happy occasions. Last year, Hungary held elections in which a right-of-center party, FIDESZ, won a landslide, sweeping out eight years of socialist government rejected by many voters as scandal ridden and inept. With FIDESZ winning 52 percent of the vote, Hungary has the distinction of being the only country in Central Europe since the 1989 transformations where a single party has won an outright majority--not necessarily a bad thing, especially in a region where many governments are periodically hobbled by factionalism. Those elections were also notable because more than 850,000 Hungarians--16 percent of the vote--cast their ballots for Jobbik, an anti-Semitic, anti-Roma, irredentist party. While Jobbik is an opposition party, it has clearly and negatively influenced public policy discourse. Under Hungary's electoral system, FIDESZ's 52 percent of the vote has translated into a two-thirds majority of the seats in parliament. The government of Prime Minister Viktor Orban has used that supermajority to push through one controversial initiative after another. One initiative that has generated particularly sharp criticism is Hungary's new media law. The OSCE Representative on Freedom of the Media warned it could be used to silence critical media and public debate, it overly concentrates power in regulatory authorities, and it harms media freedom. In Ukraine, where democracy has put down only shallow roots, the Kyiv Post editorialized that "Hungary's media law should not come here.'' Another area of concern stems from the government's fixation on ethnic Hungarian identity and lost empire in ways that can only be seen as unfriendly by other countries in the region. One of the government's first acts was to amend Hungary's citizenship law to facilitate the acquisition of Hungarian citizenship by ethnic Hungarians in other countries--primarily Romania, Serbia, Slovakia, and Ukraine. This expansion of citizenship was pushed through even though, in a 2001 statement submitted to the Council of Europe, the Hungarian Government firmly renounced all aspirations for dual citizenship for ethnic Hungarians. In a further escalation of provocative posturing, a few weeks ago Speaker of the Hungarian Parliament Laszlo Kovar said that military force to change the borders with Slovakia--a NATO ally--would have been justified and, in any case, he added, the ethnic Hungarians in Slovakia are "ours.'' If one side of the nationalism coin is an excessive fixation on Hungarian ethnic identity beyond the borders, the other side is intolerance toward minorities at home. For example, one increasingly hears the argument, including from government officials, that while the Holocaust was a 20th-century tragedy for Jews, the worst tragedy for Hungarians was the 1920 Treaty of Trianon--the treaty that established the borders for the countries emerging from the defeated Austro-Hungarian Empire. This comparison is offensive and disturbing. Ethnic Hungarians were never targeted for extermination or subjected to mass murder by Trianon. Moreover, this line of argument presents Hungarians and Jews as mutually exclusive. But more than 400,000 Jews were sent from Hungary to Auschwitz, and more than 10,000 Jews were shot along the banks of the Danube--were they not also Hungarian? How could this not be a tragedy for Hungary? The government has also used its supermajority to adopt a completely new Constitution which has been reviewed by the Council of Europe's Venice Commission on Democracy through Law, a body of judicial experts. The Venice Commission expressed particular concern with the requirement that numerous issues can now only be addressed through supermajority or so-called cardinal laws. In other words, "The more policy issues are transferred beyond the powers of simple majority, the less significance will future elections have and the more possibilities does a two-thirds majority have of cementing its political preferences and the country's legal order.'' In short, the Commission concluded, "the principle of democracy itself is at risk.'' This combines, by the way, with a court-packing scheme--the expansion of the size of the Constitutional Court from 11 to 15--and a reduction of the retirement age for ordinary judges from 70 to 62, which will reportedly mean 10 percent of all judges will be replaced. To make exactly clear what he has intended with these reforms, Prime Minister Orban declared that he wants to tie the hands not only of the next government, but of the next 10 governments--that is, future Hungarian governments for the next 40 years. It is no wonder then that in Freedom House's latest "Nations in Transit'' survey, released this week, Hungary had declined in ratings for civil society, independent media, national democratic governance, and judicial framework and independence. Ironically, just as attention shifts to the tantalizing possibility of democratic reform in the Middle East, the red flags in Budapest keep multiplying: Transparency International has warned that transferring the power to appoint the Ombudsman from the parliament to the president means that he or she will not be independent of the executive. NGOs have warned that a new draft religion law may result in a number of religions losing their registration. Restrictions by Hungarian authorities on pro-Tibet demonstrations during last week's visit to Budapest of the Chinese Premier were seen as an unnecessary and heavy-handed limitation of a fundamental liberty. Plans to recall soldiers and police from retirement so that they may oversee Romani work battalions have predictably caused alarm. In 1989, Hungary stood as an inspiration for democracy and human rights advocates around the globe. Today, I am deeply troubled by the trends there. I understand that it sometimes takes new governments time to find their bearings, and I hope that we will see some adjustments in Budapest. But in the meantime, I hope that other countries looking for transformative examples will steer clear of this Hungarian model.

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