Title

Foreign Meddling in the Western Balkans

Tuesday, January 30, 2018
10:00am
Russell Senate Office Building, Room 385
Washington, DC
United States
Guarding against Economic Vulnerabilities
Official Transcript: 
Unofficial Transcript: 
Moderator(s): 
Name: 
Robert Hand
Title Text: 
Senior Policy Advisor
Body: 
Commission on Security and Cooperation in Europe
Witnesses: 
Name: 
Ruslan Stefanov
Title: 
Director
Body: 
Bulgarian Center for Study of Democracy
Name: 
Milica Kovačević
Title: 
President
Body: 
Montenegrin Center for Democratic Transition
Name: 
Nemanja Todorović Štiplija
Title: 
Founder and Editor in Chief
Body: 
“European Western Balkans” media outlet
Name: 
Dimitar Bechev
Title: 
Research Fellow, Center for Slavic, Eurasian, and East European Studies
Body: 
University of North Carolina – Chapel Hill
Name: 
Andrew Wilson
Title: 
Managing Director
Body: 
Center for International Private Enterprise

Malign outside influence in the Western Balkans, in particular by Russia, is of increasing concern. The lack of a strong legal framework makes countries in the region especially vulnerable to foreign capital that can be used to sow instability, undermine integration, and delay democratic development.

In the past decade, Russia has exponentially increased its economic investment in Balkan countries.  Without adequate governance and transparency, so-called “corrosive capital” will wield its financial power to distort policy making, lessen the European focus of the countries concerned, and potentially cause instability in the region.

The Center for International Private Enterprise (CIPE) has worked with local private and civil society partners to analyze the economic governance gaps that allow “corrosive capital” to gain a foothold in Bosnia and Herzegovina, Macedonia, Montenegro, and Serbia.

According to panelists, Russia’s economic footprint is most obvious in key strategic sectors, including real estate, banking, energy, and mining.  Russian foreign direct investment stock is close to 30 percent of Montenegro’s GDP and it exerts both direct and indirect control of approximately 10 percent of the economy of Serbia. The dependency of Balkan countries on Russian imports and financial loans is also a prevalent form of indirect power.

As a result, when Montenegro joined NATO in 2017, the Russian Foreign Minister announced that Montenegro had sacrificed its economic relations with Russia. Russia further sanctioned Montenegro by discouraging travel to the country by Russian tourists, characterizing it as a dangerous place.  Although the anti-NATO campaign has not succeeded, it did indicate Russian intentions as well as local vulnerability to outside influence. 

The economic presence of outside actors other than Russia was also discussed.  In general, the panelists emphasized the need to diversify foreign direct investment and reduce reliance on capital from non-democratic countries. Transparency in foreign investment and a depoliticization of corporate governance is also necessary. A free, independent and diverse media also will help ensure greater accountability in both the political and economic sectors.

Helsinki Commission activity regarding the Western Balkans reflects ongoing concern for the countries of the region. With several Balkan states on the cusp of NATO and EU membership, it is particularly important for these countries to strive for greater democratic development and economic prosperity.

The United States has played a significant role in the region, providing political, economic and military support.  If not seen through to completion of NATO or EU membership as desired, these states face the continued risk of backsliding.

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The lifting of the flank agreement would allow the Russians to increase their military forces in the Caucasus region of Russia without limits. Russia had also pressed for discarding the requirement in the original CFE agreement which set collective ceilings limiting the equipment/personnel each alliance (NATO/Warsaw PACT) could have in the "Atlantic to the Urals" area and in any given signatory country. Ratification of the Adaptation Agreement would do away with the collective ceilings, recognizing that the Warsaw Pact no longer exists, and permitting Russia to move personnel and equipment more freely in Russia. However, Russia wants assurance that the 20,000 tanks ceiling for the NATO in Europe will remain in place as new members join the alliance. Russia also took issue with the linkage of the allies’ ratification of the Adapted CFE to Russia’s fulfillment of the related Istanbul Commitments to withdraw its armed forces from Georgian and Moldovan territories. 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Nonetheless, some NGOs did face access problems and had trouble getting into the conference center on the first day, although the opening plenary was supposed to be open to them. Helsinki Commission Chairman Congressman Alcee Hastings and Department of State Assistant Secretary for Europe Dan Fried held meetings with some NGOs in order to show their support. Increasing OSCE involvement with partner country Afghanistan was supported by the United States There also was wide support for the decision among countries at the Madrid meeting, though Russia and France were unconvinced that the OSCE should be working outside the territory of participating States. In the end, there was consensus on OSCE activities related to border management, with the caveat that most of the activities would take place in OSCE counties bordering Afghanistan. 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One of the OSCE Mission’s advantages continues to be its presence throughout the country. The mission currently consists of the headquarters office in Sarajevo, three regional centers (RC), and 20 field offices (FO). The Mission’s field offices are one of its key advantages over others organizations. The relationships built with local authorities and communities are the basis for OSCE’s effectiveness and often used by other organizations and Embassies not resident throughout the country. The Mission currently focuses its work through four Departments: Democratization, Education, Human Rights, and Security Cooperation. Each Department conducts several programs, which are standardized and implemented throughout the country by staff of the field offices. Democratization Programs The work of the Democratization Department focuses on developing efficient and transparent government institutions, building parliamentary capacity, and supporting civil society. A major component is UGOVOR, a country-wide local government project launched in March 2005. As other international organizations are becoming more involved with public administration reform, the Mission is shifting to building ties among municipal governments and developing civil society. In addition, the Mission works in small municipalities where other international organizations are not. OGOVOR is a five-module training program to improve regulatory elements of municipal governance and promote greater transparency and accountability. The five modules are: access to information; ethics for elected officials; participatory strategic planning; harmonization of municipal statutes; and partnership between civil society and municipal governments. 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Such segregation fosters children’s perception that they should not mix with individuals from the other groups and does little to promote reconciliation. Moreover, politicians – particularly at the local level – sometimes use education to build nationalist credentials in the hopes of gaining votes. The Mission is working to desegregate schools as much as possible. Some schools have been integrated – such as the Mostar Gymnasium which began unified classes in the fall of 2006 – and others have begun holding joint classes on certain subjects such as computer technology. One focus is building civil society input to school reform through the creation of and support for parent and student councils, as well as teachers’ forums. The Mission recently published a manual for student councils in secondary schools. The OSCE also works with municipal, entity, and State authorities on education reform, including legislative and curriculum reform. Human Rights Programs Until recently, the Mission’s human rights work had focused on property rights and restitution, in line with the need at that time to follow cases as refugees and IDPs return to reclaim their property. As returnees have settled in, the Mission has turned to monitoring potential discrimination against returnees and other vulnerable groups by local authorities. The Mission has also been monitoring trials since the introduction of a new legal system three years ago; this work is increasing as the number of war crimes trials increases in Bosnian courts. The Mission monitors how local authorities provide basic economic and social support – such as health care, housing, and pensions - to vulnerable groups, including returnees, Roma, and disabled persons, in order to address any patterns of discrimination that emerge. Trial monitoring is aimed at ensuring fair trials, particularly war crimes trials, and at identifying shortcomings in the Bosnian judicial system and resolving them. There is a special unit which monitors 11bis trials transferred by the ICTY to Bosnian courts. The Mission also does significant work with Roma communities. For example, in one municipality alone, the OSCE has raised the number of Roma children in school from 8 to almost 90. Security Cooperation Programs Programs under the Security Cooperation Department originally focused on implementation of Dayton Peace Agreement Annex 1b, Articles II and IV. Work on Article II was completed in 2004 with the signing of the Agreement on the Termination of Article II on 28 September. Although some work continues under Article IV, military reform and troop reductions have resulted in significantly fewer inspections. UNDP has taken the lead in reducing small arms and light weapons (SALW. Currently, the work of the Department focuses on institution building and parliamentary capacity-building. The Department recently completed a pilot training course for various levels of government officials on the government’s new security policy concept. The Department also conducts training on the OSCE Code of Conduct on Political-Military Aspects of Security. The parliamentary capacity building program began in 2002 and works with defense and intelligence committees. It organizes trainings, visits to other countries, and strengthening of oversight capabilities.

  • The Future Belarus: Democracy or Dictatorship?

    This briefing, on the prospects for democratic change in Belarus, a country located in the heart of Europe, but which had the unfortunate distinction of having one of the worst human rights and democracy records in the European part of the OSCE region, was held by Hon. Alcee L. Hastings, Chairman of the Commission on Security and Cooperation in Europe. He was join by a delgation of courageous leaders of Belarus' democratic opposition and leading human rights and democracy activists: Aliaksandr Milinkevich, Anatoliy Lebedko, Sergey Kalyakin, Anatoliy Levkovich, and Dmitriy Fedaruk. The witnesses were commended for their courage to testify at the briefing and applauded for their commitment to the struggle for democracy, freedom, and human rights, even under very trying circumstances.

  • Srebrenica: Twelve Years after the Genocide and the Signing of the Dayton Accords

    By Cliff Bond, Senior Advisor In February of this year, the International Court of Justice issued a decision confirming that an act of genocide had been committed in the UN designated safe haven of Srebrenica in July 1995. The court decision came at a time when political tensions were already high in Bosnia and Herzegovina. A hotly contested election and a failed attempt at constitutional reform a few months earlier had led senior politicians to revert to war-time rhetoric not heard since the signing of the Dayton Peace Accords in late 1995. Many in the international community failed to appreciate how the decision would further sharpen inter-ethnic tensions and unleash a pent-up sense of humiliation and injustice among Bosnian Muslims for the failure to either prevent this atrocity or hold its principle perpetrators, indicted but still at-large Bosnian Serb wartime leaders Radovan Karadzic and Ratko Mladic, accountable. In response to this deteriorating political situation and in view of my experience as a former U.S. Ambassador to Sarajevo, then-High Representative Christian Schwartz-Schilling, the senior international representative responsible for implementing Dayton, asked me in May to serve as his Envoy to Srebrenica. My one year mandate was to address concerns of Srebrenica’s residents and future returnees for justice, security and a better life. The Helsinki Commission kindly made me available to serve on a part-time basis for this purpose. Mid-way through this mandate I am pleased to report progress is being made by local authorities and the international community working constructively together to improve conditions in the Srebrenica region, albeit much more needs to be done. At the beginning of our work in Srebrenica we faced the need to reduce political tensions on the ground. Without calming the situation and creating space for dialogue, progress and cooperation would not have been possible. Many factors contributed to a now-improved environment, but a decision to remove an Orthodox church constructed illegally on privately-owned Bosnian Muslim land in the village of Konjevic Polje, not far from Srebrenica, was certainly important. This had been a long standing dispute and action on it underscored that in every part of Bosnia and Herzegovina the rights of citizens, regardless of ethnicity, must be respected. Unfortunately, the decision is yet to be fully implemented. The sooner it is, the more confidence it will generate and the more trust will be built among the citizens of Srebrenica. But this is a small step when compared with the continued liberty of many of those who planned and carried out the genocide at Srebrenica, which remains a source of frustration for the survivors. The actions of incoming High Representative Miroslav Lajcak in early July to accelerate investigations of the suspects of the Srebrenica atrocities was significant, as was the full cooperation in implementing these measures by the authorities of the Republika Srpska – the Bosnian Serb entity, which along with the Muslim-Croat Federation, make up the decentralized state of Bosnia and Herzegovina. A decision to fund a team of international investigators and then to open a branch of the State Prosecutor’s Office in Srebrenica were also meant to reinforce this effort and speed up prosecutions. Taken together, these actions assured the public that the individuals who played a part in the crimes at Srebrenica will eventually be brought to justice. Another significant step had been taken earlier by Lajcak’s predecessor, Christian Schwartz-Schilling. He acted to establish the legal authority for the Srebrenica-Potocari Foundation (a memorial and cemetery for the victims) at the state level and provided for its security through a state-level law enforcement agency. This addressed a fundamental concern of surviving family members for the Foundation’s future once the Office of the High Representative and the exceptional international presence ended in the country. This should be viewed as a human and moral gesture taken out of recognition of the tragedy that occurred, not as a political one, as some have chosen to portray it. The decision deserves the full support of all the citizens of Bosnia and Herzegovina. Although the current situation in terms of public order around the Srebrenica region is good, returnees are understandably sensitive to the issue of security. We are working with entity authorities to establish and maintain more ethnically balanced policing in the municipality. Along with the speedier prosecution of war criminals, nothing would make returnees to the region feel more secure and protected. When I came back to Srebrenica in May this year, I found it little changed since my first visit in 2001. In the past six months the authorities of the Republika Srpska have invested more than $25 million in infrastructure and other public service improvements in the region and deserve credit for the effective way in which this has been carried out. Additional funding will be dedicated for this purpose in the entity’s 2008 budget and municipal authorities will be involved in planning and identifying priorities for this spending. The state-level Council of Ministers has also approved an approximately $7 million spending package for infrastructure development, business promotion and the improvement of public services. This is a good package of measures, and includes physical improvements to the town’s center, but it needs to be implemented as quickly as possible. The Federation has also devoted some $2.5 million to support sustainable returns and directed some of its public enterprises to invest in the region. A Development Conference was organized in Srebrenica by the U.N. Development Program, international donors and the municipality on July 3. Its object was less about raising more money, though it did, and more about better coordination among donors to produce a more visible impact of the considerable assistance already dedicated to the region. Donors need to better align their activities with the municipality’s own priorities and be more transparent and inform the public of their programs and results. Nothing will change economic conditions for the better in Srebrenica more than the generation of new jobs. Small but still important first steps have been taken to expand Bosnian Muslim employment opportunities in public services and enterprises in the area, and this is a positive step. More certainly needs to be done on this score. The real potential for job creation, however, is in the private sector and through attracting new investment to the region. This is why we organized a major investment conference on November 6. The conference demonstrated that investor opportunities and interest exist in Srebrenica, and an American and Slovene firm announced plans to invest in the municipality at the end of the conference. There have been additional expressions of investor interest since, but now local authorities must work, with the support of the international community, to translate this potential into actual investment and more jobs. Despite an agreement signed by the Federation and the Republika Srpska earlier this year on improving access to health services, returnees to Srebrenica complain that they are still unable to get the treatment and benefits to which they are entitled. This is also true of other social services, which like health care are the competency of each entity. The problems arise as refugees return from one entity to another. Entity authorities must cooperate in finding a solution to this as a matter of urgency, not only for Srebrenica, but for other returnee communities throughout the country. Unless you have spent time in Srebrenica, you cannot appreciate how isolated the community is. Currently most villages in the area have no access to radio or television signals, and this only strengthens a sense of isolation and abandonment. Thankfully, the Dutch and U.S. governments are working to establish radio and television coverage throughout the area. A U.S. firm, Cisco Systems, will also soon provide wireless broadband Internet access to the community, allowing Srebrenica’s schools and youth to connect with the outside world. All of these positive initiatives will only succeed if a constructive dialogue is maintained among the members of the Srebrenica community. Dialogue requires courage and confidence and will be essential in the months ahead if we are to reach agreement on such issues as developing Srebrenica’s natural resources, including its mineral springs which were a major pre-war tourist attraction, bringing other business to the region and providing a better ethnic balance to its police and other public services, including in the senior ranks. In my work over the last six months, I have found the people of Srebrenica, after all that they have been through and in the midst of continuing real hardship, are capable of working together to build a better future. In this they can serve as an example to the political leaders of their country who must work together to achieve the constitutional and other reforms that can secure Bosnia and Herzegovina’s integration into the Euro-Atlantic community.

  • Bosnia-Herzegovina: Outstanding Issues in Post-Conflict Recovery and Reconciliation

    The hearing will focus on outstanding issues from the 1992-95 conflict, which was characterized by violent ethnic cleansing, and how they shape politics, society and economic development in Bosnia-Herzegovina today. Issues of particular interest include bringing those responsible for war crimes, crimes against humanity and genocide to justice, the successful return of displaced persons and refugees, and the identification of missing persons. Like virtually all European countries, Bosnia-Herzegovina has strong aspirations for European integration, but the legacy of the war has made a popular consensus to necessary reform efforts exceedingly difficult to obtain.

  • Combating Hate Crimes and Discrimination in the OSCE

    Congressman Alcee L. Hastings (D-FL), Chairman of the CSCE, held a briefing on hate crimes and discrimination in the OSCE region.  Joining Chairman Hastings at the dais were Helsinki Commissioners Senator Gordon Smith (R-OR) and Congresswoman Hilda Solis (D-CA).  The briefing focused on intolerance and discrimination within the 56 countries that make up the Organization for Security and Cooperation in Europe (OSCE).  Congressman Hastings emphasized the discrimination against the Roma and other minorities of Turkish, African, and south Asian descent when they attempt to apply for jobs, find housing, and get an education The panel of speakers – Dr. Dou Dou Diene, United Nations Special Rapporteur on contemporary forms of racism, racial discrimination, xenophobia, and related intolerance; Dr. Tiffany Lightbourn, Department of Homeland Security, Science & Technology Directorate; and Mr. Micah H. Naftalin and Mr. Nickolai Butkevich, UCSJ: Union of Councils for Soviet Jews – spoke of the rising popularity of right-wing extremist party, who espouse vicious anti-Semitic slogans and appeal to a 19th century form of European ethnic identity.  In addition, Urs Ziswiler, the Ambassador of Switzerland, attended the briefing and commented on the rise in xenophobic views in Switzerland.  

  • Russia: Advancing in the War against Cancer, Retreating on Democratic Governance

    By Marlene Kaufmann General Counsel The first Russian Forum on Health or Tobacco convened in Moscow May 28-29, 2007, under the auspices of the State Duma and in collaboration with a broad array of international organizations including the World Health Organization (WHO) and the International Union Against Cancer (UICC). United States support and participation was provided by the National Cancer Institute (NCI), the American Cancer Society, the American Russian Cancer Alliance (ARCA) and the Campaign for Tobacco Free Kids, as well as Johns Hopkins University and the University of Maryland School of Law. Russia has the third highest per capita cigarette consumption in the world and some 375,000 Russians die every year from smoking-related diseases. Low cigarette taxes – which contribute to a selling price of approximately 50 cents per pack in Russia, as opposed to $5.00 in EU countries – combined with weak tobacco control legislation contribute to a growing burden on Russia’s health care system. One of the primary aims of the Forum was to educate the public, particularly young people, about the dangers and long-term effects of the use of tobacco products. The driving force in organizing this first ever forum on tobacco control is Dr. Nikolay F. Gerasimenko, Deputy Chairman of the Health Care Committee of the State Duma, who worked with the leadership of the renown N.N. Blokhin Russian Cancer Research Center and the Russian Research Institute of Pulmonology to bring the conference to fruition. The morning plenary of the Forum was chaired by Duma Speaker Boris Gryzlov who expressed his strong support for the work of the Forum and efforts to curb tobacco-related diseases. Speaker Gryzlov was joined by Moscow Mayor Yuri Luzkhov, United States Ambassador William Burns and an array of celebrities from the Russian music and film industries as well as national sports figures in an appeal to the public, especially young people, to quit tobacco. House Majority Leader Congressman Steny H. Hoyer also addressed the forum through a pre-recorded video presentation. Congressman Hoyer has supported the work of NCI and the American Russian Cancer Alliance (ARCA) in combating tobacco-related cancers, as well as ARCA’s cutting edge research in curing solid tumors. The Forum was well attended and well covered by Russian national media and its impact was immediate. During the conference the State Duma gave tentative approval to legislation aimed at restricting smoking in public places such as restaurants and waiting lounges in train stations and airports. A Russian Anti-Tobacco League was created to consolidate the efforts of anti-tobacco forces in the Russian Federation, and in July the Russian Ministry of Foreign Affairs announced that Russia will join the WHO Framework Convention on Tobacco Control. Bending Swords In To Plowshares One of the sponsors of the anti-tobacco forum, the American Russian Cancer Alliance (ARCA), represents a unique partnership between scientists in the Russian Federation and their counterparts in the United States. The primary focus of ARCA activities is the use of isotopes derived from Russian nuclear weapons stockpiles in cancer detection, diagnosis and treatment. The Russian partners in the Alliance include the N.N. Blokhin Russian Cancer Research center in Moscow and the Russian Research Center at the Kurchatov Institute. On the U.S. side, the Alliance partners are the Fox Chase Cancer Center in Philadelphia and the University of Maryland Greenebaum Cancer Center in Baltimore. In addition to these partners, ARCA has developed relationships with a number of other hospitals and research institutions in Russia and the U.S. Each member of the Alliance brings unique strengths and talents to what is a true intellectual and scientific partnership. These scientific strengths have been coupled with a strong commitment on the part of the two nations to work together on the peaceful use of nuclear technology. In conjunction with the Moscow Forum on Tobacco or Health, ARCA and NCI representatives met with senior members of the Russian Academy of Sciences to discuss possible joint nanohybrid studies dedicated to scientific projects and clinical trials to develop new methods of diagnosis and treatment for a broad range of cancers. The collaborative research projects that are being conducted as part of the ARCA partnership involving the use of Russian radioisotopes are yielding extremely promising results. Although these isotopes were created for more sinister purposes, they are now being utilized in research aimed at reducing the burden of cancer in both the U.S. and the Russian Federation – demonstrating that those who once were enemies can now work together for the common good. It is the hope of all associated with the ARCA effort that the collaboration can continue and that the Russian isotopes produced for weapons of mass destruction can be converted to instruments of mass benefit. Whither Democracy? Unfortunately, prospects for advancement in other areas of Russian society are not so bright. It is certainly true that, in Moscow at least, business is booming -- attributable in large part to growing energy revenues. New commercial construction and infrastructure projects abound, the retail sector is flourishing, and there is a rising middle class. These apparently liberalizing economic trends are, however, not accompanied by liberalizing democratic trends, in fact, quite the opposite. Many respected civil society and non-governmental organizations whose goal is to promote civic and political engagement and enhance democratic development and the rule of law have been harassed and intimidated by the tax police and other government entities. Some, like Open Russia, have been forced to shut down for alleged violations of finance controls. The three national TV networks are essentially controlled by the Kremlin and much of the print media is controlled by one or another level of government or business interests sympathetic to the government. The Committee to Protect Journalists reports that since the year 2000, fourteen journalists have been murdered in the Russian Federation in retaliation for their professional activities, making Russia the third most dangerous country for journalists (after Iraq and Algeria). None of these killings have been solved, although authorities claim progress in some cases. Among the victims was renowned investigative journalist Anna Politkovskaya, murdered gangland-style in Moscow in November 2006. Commission Chairman Congressman Alcee L. Hastings and Co-Chairman Senator Benjamin L. Cardin wrote to President Vladimir Putin in June expressing serious concern about the lack of media freedom in Russia. On August 2, 2007 the Commission convened a hearing on “Freedom of the Media in the OSCE Region,” with a particular focus on developments in Russia, Kazakhstan, Azerbaijan and Turkey. The rule of law is under assault in Russia as well. Recently the Prosecutor General in Moscow filed a request with the Moscow Bar Association to disbar Karinna Moskalenko, one of Russia’s most distinguished human rights lawyers. Moskalenko is a member of the International Commission of Jurists and through her Center for International Protection in Moscow has represented, among many others, the family of murdered journalist Anna Politkovskaya, imprisoned Russian oil executive Mikhail Khodorkovsky and political activist Gary Kasparov. In addition to the courts of the Russian Federation, Ms. Moskalenko pursues the interests of her clients before the European Court of Human Rights (ECHR) in Strasbourg, where she has had many successes – apparently sparking the Kremlin’s ire and, according to some observers, generating the pending disbarment procedure. Commission Chairman Hastings and Ranking Member Congressman Christopher H. Smith joined other members of the Congressional Human Rights Caucus in a May 24, 2007 letter to President Putin urging withdrawal of the disbarment request. Sadly, many observers of civil society and those in the NGO community in Russia see little hope of positive change in this situation in the near term notwithstanding upcoming Russian parliamentary and presidential elections scheduled for December 2007 and March 2008 respectively. The good news is, it does not appear that those who support democratic development in Russia are throwing up their arms in defeat. Rather, they remain steadfast and appear to be girding themselves for the long haul.

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