Title

Property Restitution, Compensation and Preservation: Competing Claims in Post-Communist Europe

Thursday, July 18, 1996
10:05am
Room 2255, Rayburn House Office Building
Washington, DC 20515
United States
Official Transcript: 
Members: 
Name: 
Hon. Christopher H. Smith
Title Text: 
Chairman
Body: 
Commission on Security and Cooperation in Europe
Moderator(s): 
Name: 
Erika Schlager
Title Text: 
Policy Advisor
Body: 
Commission on Security and Cooperation in Europe
Witnesses: 
Name: 
Delissa Ridgway
Title: 
Chair
Body: 
U.S. Foreign Claims Settlement Commission
Name: 
Stuart E. Eizenstat
Title: 
Under Secretary of Commerce for International Trade
Body: 
U.S. Department of Commerce

This hearing, which Rep. Christopher H. Smith (NJ – 04) presided over, focused on how to rectify transgressions against individuals by former totalitarian regimes, which Smith called one of the most challenging issues confronting post-Communist societies in the OSCE region. This specifically related to the wrongful confiscation of property.

Even though some Communist regimes were required by the 1947 Paris Peace Treaty to make restitution of Jewish property, these governments duly ignored such directives. In fact, Communist regimes were infamous for their complete disregard for private property, nationalizing factories, etc. Likewise, more recently, efforts to return property to former owners had been uneven and oftentimes unsuccessful, stymied by complex moral and legal obligations.

Relevant countries: 
Leadership: 
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  • Human Rights in Hungary

    Madam President, earlier this year I chaired a Helsinki Commission hearing on the situation in Hungary. Today, I would like to revisit some of the issues addressed by our witnesses. Since the April 2010 elections, Hungary has undertaken the most dramatic legal transformation that Europe has seen in decades. A new Constitution was passed with votes of the ruling party alone, and even that has already been amended five times. More than 700 new laws have been passed, including laws on the media, religion, and civic associations. There is a new civil code and a new criminal code. There is an entirely new electoral framework. The magnitude and scope of these changes have understandably put Hungary under a microscope. At the Helsinki Commission's hearing in March, I examined concerns that these changes have undermined Hungary's system of democratic checks and balances, independence of the judiciary, and freedoms of the media and religion. I also received testimony about rising revisionism and extremism. I heard from Jozsef Szajer, a Member of the European Parliament who represented the Hungarian Government at the hearing. Princeton constitutional law expert Kim Lane Scheppelle, Dr. Paul Shapiro from the U.S. Holocaust Memorial Museum, and Sylvana Habdank-Kolaczkowska from Freedom House presented compelling testimony. Unfortunately, developments in Hungary remain troubling. Even though Hungary's religion law was tweaked after the Constitutional Court struck down parts of it, it retains a discriminatory two-tier system. Moreover, the Parliament is empowered with the extraordinary and, for all practical purposes, unreviewable power to decide what is and what is not a religion. This month, the government announced it is launching an investigation into the Methodist Evangelical Church, a church persecuted during communist times. Today, the Methodist Evangelical Church is known for its outreach to Roma, work with the homeless and is one of the largest charitable organizations in Hungary. As I noted at the Helsinki Commission hearing in March, it is also one of the hundreds of religious groups stripped of official recognition after the passage of Hungary's new religion law. The church has now complied with submitting the necessary number of supporters required by the law and, as a reply, the government has announced an unidentified "expert'' will conduct an investigation into the church's beliefs and tenets. This step only reinforces fears that parliamentary denial of recognition as a so-called "Accepted Church'' opens the door for further repressive measures. Veneration of Hungary's wartime regent, Miklos Horthy, along with other anti-Semitic figures such as writer Jozsef Nyiro, continues. In November, a statue of Hungarian Jewish poet Miklos Radnoti, who was killed by Hungarian Nazis at the end of 1944, was rammed with a car and broken in half. At roughly the same time, extremists staged a book burning of his works along with other materials they called "Zionist publications.'' At the beginning of December, two menorahs were vandalized in Budapest. Reflecting the climate of extremism, more than 160 Hungarian nationals have been found by Canada this year to have a well-founded fear of persecution. Almost all are Romani, but the refugees include an 80-year-old award winning Hungarian Jewish writer who received death threats after writing about anti-Semitism in Hungary, and was stripped of his honorary citizenship of Budapest on an initiative from the far-right Jobbik party, supported by the votes of the ruling Fidesz party. While there are many who suggest the real problem comes from the extremist opposition party Jobbik, and not the ruling government, it seems that some members of Fidesz have contributed to a rise in intolerance. I am particularly troubled that the government-created Media Council, consisting entirely of Fidesz delegated members, has threatened ATV--an independent television station--with punitive fines if it again characterizes Jobbik as extremist. If you can't even talk about what is extremist or anti-Semitic in Hungary without facing legal sanctions, how can you combat extremism and anti-Semitism? Moreover, this decision serves to protect Jobbik from critical debate in the advance of next year's elections. Why? Other new measures further stifle free speech. Unfortunately, and somewhat shockingly, last month Hungary amended its defamation law to allow for the imposition of prison terms up to 3 years. The imposition of jail time for speech offenses was a hallmark of the communist era. During the post-communist transition, the Helsinki Commission consistently urged OSCE countries to repeal criminal defamation and insult laws entirely. In 2004, for example, the Helsinki Commission wrote to Minister of Justice Peter Barandy regarding the criminal convictions of Andras Bencsik and Laszlo Attila Bertok. This new law, raced through under an expedited procedure in the wake of a bi-election controversy in which allegations of voter manipulation were traded, was quickly criticized by the OSCE representative on Freedom of the Media. I share her concerns that these changes to the criminal code may lead to the silencing of critical or differing views in society and are inconsistent with OSCE commitments. Hungary was once held up as a model of peaceful democratic transition and is situated in a region of Europe where the beacon of freedom is still sought by many today. I hope Hungary will return to a leadership role in the protection of human rights and the promotion of democracy. 

  • Europeans of African Descent ‘Black Europeans’: Race, Rights and Politics

    Racist acts targeting Black cabinet-level officials in Italy and France have put a spotlight on the experiences of the 7-10 million people of African Descent in Europe / Black Europeans. A visible minority in Europe often unacknowledged despite a centuries’ long presence in Europe, Black Europeans have increasingly become the targets of discrimination, pernicious racial profiling, and violent hate crimes impacting equal access to housing, employment, education, and justice. Europe today grapples with the complex intersection of national identity, decreasing birth rates, increasing immigration, security concerns, and a rise in extremist political parties and vigilantism. In this context, the experiences of Black Europeans increasingly serve as a measure of the strength of European democracies and commitments to human rights. The briefing discussed the work of Black European rights organizations and the efforts of the international community to address issues of inequality, discrimination, and inclusion for Black Europeans, in addition to discussing similarities and work with African-American civil rights organizations.

  • 75th Anniversary of Kristallnacht

    Mr. President, I rise today to remember those who perished and suffered during Kristallnacht, the Night of Broken Glass, seventy-five years ago on November 9 and 10 in Germany, German-occupied Austria, and German-occupied Czechoslovakia. Earlier that year, in March 1938, Germany absorbed Austria – the so-called Anschluss. Then, at the September 1938 Munich conference, France, Britain and Italy allowed Germany to annex the western rim of Czechoslovakia and to claim its three million Sudeten Germans as its own. In both acts, the concept of loyalty to the state was equated with ethnic identity. Then, in October 1938, Germany expelled seventeen thousand Jews with Polish citizenship from Germany into Poland. These families were arrested at night, transported by train to the Polish border, and effectively left in limbo, as Poland initially refused to accept them. The son of two of these expellees, a Polish Jew in France, took revenge: He assassinated a German diplomat in Paris.  Propaganda minister Joseph Goebbels subsequently asserted that “World Jewry” was responsible for the assassination and gave the signal for the start of the first large open pogrom in Germany: "the Führer,” he stated, “has decided that . . . demonstrations should not be prepared or organized by the Party, but insofar as they erupt spontaneously, they are not to be hampered.”  As described by the U.S. Holocaust Memorial Museum: “The rioters destroyed 267 synagogues throughout Germany, Austria, and the Sudetenland. Many synagogues burned throughout the night, in full view of the public and of local firefighters, who had received orders to intervene only to prevent flames from spreading to nearby buildings. SA and Hitler Youth members across the country shattered the shop windows of an estimated 7,500 Jewish-owned commercial establishments, and looted their wares. Jewish cemeteries became a particular object of desecration in many regions. The pogrom proved especially destructive in Berlin and Vienna, home to the two largest Jewish communities in the German Reich. Mobs of SA men roamed the streets, attacking Jews in their houses and forcing Jews they encountered to perform acts of public humiliation. Although murder did not figure in the central directives, Kristallnacht claimed the lives of at least 91 Jews between the 9th and 10th of November. Police records of the period document a high number of rapes and of suicides in the aftermath of the violence.” Kristallnacht was thus a crucial turning point in the Holocaust – moving from a policy of removing Jews from Germany and German occupied lands, to murdering them. It also stands as an enduring example of the danger of associating citizenship with ethnicity, of tying loyalty to the state with blood identity. Kristallnacht is but one example of how hate can proliferate and erode our societies, and why I have worked tirelessly to advance global efforts to ensure atrocities such as this never happen again. In my capacity as a Chair of the Commission on Security and Cooperation in Europe and decades long work as a Member of Congress, I have advanced efforts to combat anti-Semitism and other forms of intolerance and discrimination in North America and Europe.  This work has ranged from Commission hearings to raise awareness of the continuing scourge of anti-Semitism to leading inter-parliamentary efforts to create Personal Representatives or high level officials within the Organization for Security and Cooperation in Europe to combat Anti-Semitism and other forms of intolerance. Sadly, the election of anti-Semitic political parties in Europe coupled with efforts to adopt circumcision, ritual slaughter, and other laws in Europe that would alter Jewish life and continuing incidents of anti-Semitic violence let us know that the work to eradicate anti-Semitism is not yet complete. As we honor the 75th Anniversary of Kristallnacht, I ask that you join me in honoring the victims and families of that horrible tragedy and join me in fighting hate and bias in all its forms.  Thank you, Mr. President.

  • Bulgaria Holds Early Parliamentary Elections; OSCE Mounts Full-Scale Election Observation Mission

    By Helsinki Commission Staff Country-Wide Street Protests Trigger Snap Elections In early 2013, 30 Bulgarian cities were rocked by demonstrations. In some instances, violence erupted between demonstrators and police. In addition, in the months immediately preceding the elections, six people committed suicide by self-immolation in acts of public protest and desperation. The street demonstrations were triggered by sharply rising electricity rates in a country widely described as the poorest of the EU’s 27 members. Discontent was further fueled by dissatisfaction with political leaders across the board and widespread corruption. In February, following the street demonstrations, Prime Minister Boyko Borisov resigned, paving the way for May 12’s early parliamentary elections. For those elections, 8,100 candidates stood for seats in the 240-member unicameral National Assembly allocated by proportional representation from 31 multi-mandate constituencies (with a 4% threshold for both parties and coalitions to enter parliament). Altogether, 63 parties (38 outside of coalitions and 7 coalitions) were registered as well as two independent candidates. The resulting ballot was roughly a yard long. OSCE Mounts Full-Scale Election Observation Mission The OSCE mounted a full scale Election Observation Mission (EOM) – the first in Bulgaria since 1997 and the first ever in an EU country. Eoghan Murphy (MP, Ireland) was appointed by OSCE Chair-in-Office Leonid Kozhara to serve as Special Coordinator and leader of the short-term observer mission (parliamentarians and observers seconded by OSCE participating States). The OSCE Office for Democratic Institutions and Human Rights (ODIHR) long-term observer team was headed by Miklos Haraszti. Roberto Battelli (MP, Slovenia) headed the OSCE PA delegation. Andreas Gross (MP, Switzerland) headed the observers from the Parliamentary Assembly of the Council of Europe (PACE). On Election Day, there were 158 observers deployed from 39 countries. Of an estimated 6.9 million voters (a number that, in any case, the OSCE and Council of Europe Venice Commission suggest may be high), 3,541,745 went to the polls. Voter turnout was at about 50 percent – the lowest turnout since the fall of communism – reflecting the voters’ antipathy even more than apathy. Approximately 850,000 votes were cast for parties that failed to overcome the 4% threshold to get into parliament. Reportedly 107,799 Bulgarian citizens voted abroad, with 63,152 votes cast in Turkey. The Mysterious Case of the Extra Ballots The administration of the elections on E-Day was largely unremarkable. It was, however, preceded by two separate but related wiretapping scandals suggesting that the Ministry of Interior had bugged journalists and state officials. The day before the elections, an “extra” 350,000 ballots were discovered in a printing house in Sofia. (A week after the elections, it was reported that more than 2,000 extra stamps for electoral commissions had also surfaced.) In its preliminary findings, the Election Observation Mission drew particular attention to the alienation of voters, lack of confidence in the electoral process, concerns over ballot security (the “extra” ballots), and persistent allegations of vote buying or voter intimidation. (A final report from the Mission is forthcoming.) Roma and Other Minorities in the Electoral Context Bulgaria has a population of 7.36 million (from almost 8 million in the 2001 census and roughly 8.4 million in the 1992 census). This continuing drop reflects declining birth rates and labor migration to other parts of Europe. The ethnic Turkish minority comprises 8.8 percent of the population. Almost 5 percent of the population self-identified as Romani on the last census, but Roma are estimated to be roughly 10 percent of the population. Last year, the Bulgarian Government estimated that 23 percent of the working age population is Romani. The Bulgarian Constitution prohibits the formation of political parties on ethnic, racial or religious lines, which is contrary to OSCE and other international norms on freedom of assembly. The OSCE has criticized this restriction in previous reports on Bulgarian elections. The Electoral Code stipulates that the election campaign must be conducted in the Bulgarian language only, also contrary to standards on free speech and minority language use set out in the 1990 Copenhagen Document. These restrictions also impede get-out-the-vote efforts. The Movement for Rights and Freedoms is, de facto, an ethnic Turkish minority party, although it has largely been allowed to function with a wink and a nod from the authorities. After the elections, it was reported that Lyutvi Mestan, head of the MRF party, was fined in Sliven for campaigning in Turkish. Bulgaria's last two local and Presidential elections (which were held simultaneously in 2007 and 2011) were preceded by outbreaks of anti-Roma violence. In 2011, just a few weeks before the elections, 14 Bulgarian cities erupted into anti-Roma riots. In July 2012, the headquarters of the EuroRoma political party were firebombed, killing one man. The investigation has not produced any results. On April 8, 15 Romani civil society organizations withdrew from their advisory role with the National Council for Cooperation on Ethnic and Integration Issues, effectively deeming the government’s work in this area and the consultative process to be a sham. There were no Roma in electable positions on the lists for any of the leading parties. As a result, the National Assembly produced by the May 12 elections will be the first Bulgarian parliament since the fall of communism to have no Romani MPs.

  • THE TRAJECTORY OF DEMOCRACY – WHY HUNGARY MATTERS

    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

    On October 24, more than 600 people in Berlin attended the unveiling of the Memorial for the Sinti¹ and Roma of Europe Murdered under National Socialism. Leaders of the Helsinki Commission, who had underscored the importance of the monument, welcomed the event. Rep. Chris Smith (NJ-04), Chairman of the U.S. Helsinki Commission, observed that the memorial “marks an important step in acknowledging and teaching about the fate of Roma at the hands of the Nazi regime and the Axis powers: persecution, confiscation of property, forced sterilization, slave labor, inhumane medical experimentation, and ultimately genocide.” Proposals to erect a memorial to the Romani victims of genocide emerged in the early 1990s after the unification of the Federal Republic of Germany and German Democratic Republic and at a time when German acknowledgement and remembrance took on additional dimensions. 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.

  • Healing the Wounds of Conflict and Disaster: Clarifying the Fate of Missing Persons in the OSCE Area

    The hearing examined efforts by governments and their partners in clarifying the fate of persons missing within a number of OSCE participating States and partner countries, especially in the western Balkans and northern Caucasus. The hearing also appraised the adequacy of assistance to governments and other entities engaged in locating missing persons, the obstacles that impede progress in some areas, as well as how rule of law mechanisms help governments fulfill their obligations to the affected families and society in clarifying the fate of missing persons. Currently, over a million persons are reported missing from wars and violations of human rights. In addition, there are thousands of reported cases a year of persons missing from trafficking, drug-related violence, and other causes. Locating and identifying persons missing as a result of conflicts, trafficking in humans and human rights violations and other causes remains a global challenge, with significant impact within the OSCE area.

  • Dispatches From Moscow: Luke Harding’s Chilling Tale of KGB Harassment

    This briefing, moderated by Kyle Parker, Policy Advisor at the Commission on Security and Cooperation in Europe, addressed issues of human rights abuses in Russia in the context of the then imminent elections and widespread protests. The witness – Luke Harding, a journalist with the Guardian – remarked on Russia’s human rights abuses which blatantly ignore their commitments to the Helsinki Accords, citing anecdotal evidence. Harding, who had been the only Guardian correspondent to have actually reported from Russia since the 1917 Bolshevik Revolution, had suffered more at the hands of the FSB than any other Western correspondent, due to the fact that, during his four year tenure in Moscow, he comprehensively and repetitively busted Russia’s taboos that make it the security state it is today.

  • The Escalation of Violence Against Roma In Europe

    This hearing focused on the discrimination, exclusion, and persecution faced by the Roma people in Europe.  Witnesses discussed the E.U. countries’ various national strategies for Roma integration and their effectiveness.  The witnesses also provided recommendations for the Commissioners on how to support European countries’ integration efforts on the government-to-government level.

  • Irish Chairmanship of the OSCE

    Rep. Chris Smith (NJ-04), Eamon Gilmore and others discussed what had transpired in regards to the Organization for Security and Cooperation in Europe (OSCE) while Ireland was at the helm of the organization. This included priorities set by Gilmore involving Internet freedom. Congressman Smith also praised Gilmore for incorporating his experiences in Ireland into his leadership of the OSCE, such as drawing on Ireland’s experience in Northern Ireland’s peace process in reference to protracted conflicts elsewhere in the OSCE region. The hearing attendees went on to discuss the status of the agenda as it related to ODIHR and human dimension meetings.

  • Combating Anti-Semitism in the OSCE Region: Taking Stock of the Situation Today

    By most accounts, and thanks to the work of many courageous nongovernmental organizations (NGOs) the despicable evil of anti-Semitism has decreased in most parts of the OSCE region in recent years – but it still remains at higher levels than in 2000. This is simply unacceptable, and it was the topic discussed in this hearing. Concerns raised included political transitions in the Arab world and how they might affect Muslim-Jewish relations, including in Europe; the importance of engagement with Muslim communities in Europe; and growing nationalist and extremist movements that target religious and ethnic minorities.  Additionally the roles of the OSCE, U.S. government, and Congress in addressing continuing issues of anti-Semitism at home and abroad were discussed.

  • Belarus: The Ongoing Crackdown and Forces for Change

    Nearly one year after the brutal post-December 19, 2010, election crackdown, the human rights picture in Belarus remains bleak. Brave and committed individuals who attempt to promote a democratic future for Belarus continue to be crushed by the dictatorial Lukashenka regime. Civil society continues to be under assault, with NGOs facing ever greater constraints, and freedoms of assembly and expression are severely curtailed. Yet the ongoing economic turmoil has produced growing disaffection, as manifested in Lukashenka’s plummeting popular support, and a changing domestic and international environment. The hearing will focus on the extent and impact of the crackdown on the lives of its victims and on the larger society, and what more can be done by the U.S. and our European partners to promote democratic change in Belarus.

  • 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.

  • 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.

  • 2050: Implications of Demographic Trends in the OSCE Region

    The hearing focused on the implications of current demographic trends in the expansive OSCE region through the prism of the security, economic and human dimensions.  Most of the OSCE’s 56 participating states are experiencing varying stages of demographic decline, marked by diminishing and rapidly aging populations. Such patterns were identifying as likely to have significant social, economic and security consequences for countries throughout the region, including the United States. Witnesses testifying at this hearing – including Jack A. Goldstone, Director of the Center for Global Policy at George Mason University; Nicholas Eberstadt, Henry Wendt Scholar in Political Economy of the American Enterprise Institute; Richard Jackson, Director and Senior Fellow of the Global Aging Initiative at the Center for Strategic and International Studies; and Steven W. Mosher, President of the Population Research Institute – addressed issues related to the demographic trends in the OSCE region, such as shrinking workforces in a growing number of participating States that are expected to become increasingly dependent upon foreign workers in the coming decades. A concern that these factors could contribute to mounting social tensions as demonstrated by clashes in some participating States in recent years was evident.

  • Senator Cardin’s Response to Rep. King’s U.S. Anti-Muslim Hearings

    Mr. President, I rise today to share my thoughts on the hearings held last week in the House of Representatives called "The Extent of Radicalization in the American Muslim Community and that Community's Response." Congressional hearings are supposed to serve as an important role of oversight, investigation, or education, among other purposes. However, this particular hearing--billed as the first of a series--served only to fan flames of fear and division.  My first concern is the title of the hearing--targeting one community. That is wrong. Each of us has a responsibility to speak out when communities are unfairly targeted.  In 1975, the United States joined all the countries of Europe and established the Conference on Security and Cooperation in Europe, now known as the OSCE. The Congress created the U.S. Helsinki Commission to monitor U.S. participation and compliance with these commitments. The OSCE contains commitments in three areas or baskets: security, economics, and human rights. Best known for its human rights advancements, the OSCE has been aggressive in advancing these commitments in each of the OSCE states. The OSCE stands for religious freedom and protection of minority rights.  I am the Senate chair of the U.S. Helsinki Commission. In that capacity, I have raised human rights issues in other countries, such as in France when, in the name of national security, the Parliament banned burqas and wearing of all religious articles or when the Swiss restricted the building of mosques or minarets.  These policies were restrictive not only to the religious practice of Muslims but also Christians, Jews, and others who would seek to wear religious symbols and practice their religion as they saw fit.  I have also raised human rights issues in the United States when we were out of compliance with our Helsinki commitments. In that spirit, I find it necessary to speak out against the congressional hearing chaired by Congressman Peter King.  Rather than constructively using the power of Congress to explore how we as a nation can use all of the tools at our disposal to prevent future terrorist attacks and defeat those individuals and groups who want to do us harm, this spectacle crossed the line and chipped away at the religious freedoms and civil liberties we hold so dearly.  Radicalization may be the appropriate subject of a congressional hearing but not when it is limited to one religion. When that is done, it sends the wrong message to the public and casts a religion with unfounded suspicions.  Congressman King's hearing is part of a disturbing trend to demonize Muslims taking place in our country and abroad. Instead, we need to engage the Muslim community in the United States.  A cookie-cutter approach to profile what a terrorist looks like will not work. As FBI Director Mueller recently testified to the Senate:  “... During the past year, the threat from radicalization has evolved. A number of disruptions occurred involving extremists from a diverse set of backgrounds, geographic locations, life experiences, and motivating factors that propelled them along their separate radicalization pathways.”  Let us remember that a number of terrorist attacks have been prevented or disrupted due to informants from the Muslim community who contacted law enforcement officials.  I commend Attorney General Holder and FBI Director Mueller for increasing their outreach to the Arab-American community. As Attorney General Holder said:  “Let us not forget it was a Muslim-American who first alerted the New York police to a smoking car in Times Square. And his vigilance likely helped to save lives. He did his part to avert tragedy, just as millions of other Arab-Americans are doing their parts and proudly fulfilling the responsibility of citizenship.” We need to encourage this type of cooperation between our government and law enforcement agencies in the Muslim community.  As the threat from al-Qaida changes and evolves over time, the piece of the puzzle is even more important to get right. FBI Director Mueller testified before the House recently that:  At every opportunity I have, I reaffirm the fact that 99.9 percent of Muslim-Americans, Sikh-Americans, and Arab-Americans are every bit as patriotic as anyone else in this room, and that many of the anti-terrorism cases are a result of the cooperation from the Muslim community and the United States.  As leaders in Congress, we must live up to our Nation's highest ideals and protect civil liberties, even in wartime when they are most challenged. The 9/11 Commission summed up this well when they wrote:  The terrorists have used our open society against us. In wartime, government calls for greater powers, and then the need for those powers recedes after the war ends. This struggle will go on. Therefore, while protecting our homeland, Americans must be mindful of threats to vital personal and civil liberties. This balancing is no easy task, but we must constantly strive to keep it right.  I agree with Attorney General Holder's recent speech to the Arab-American Anti-Discrimination Committee, where he stated:  “In this Nation, our many faiths, origins, and appearances must bind us together, not break us apart. In this Nation, the document that sets forth the supreme law of the land--the Constitution--is meant to empower, not exclude. And in this Nation, security and liberty are--at their best--partners, not enemies, in ensuring safety and opportunity for all.” Actions, such as the hearing held last week, that pit us against one another based on our religious beliefs, weaken our country and its freedoms and ultimately do nothing to make our country any safer. Hearings such as the one held last week only serve as a distraction from our real goals and provide fuel for those who are looking for excuses to find fault or blame in our way of life.  Let's not go the way of other countries but instead hold dear the protections in our Constitution that safeguard the individual's right to freely practice their religion and forbid a religious test to hold public office in the United States. Our country's strength lies in its diversity and our ability to have strongly held beliefs and differences of opinion, while being able to speak freely and not fear the government will imprison us for criticizing the government or holding a religious belief that is not shared by the majority of Americans.  On September 11, 2001, our country was attacked by terrorists in a way we thought impossible. Thousands of innocent men, women, and children of all races, religions, and backgrounds were murdered. As the 10-year anniversary of these attacks draws closer, we continue to hold these innocent victims in our thoughts and prayers, and we will continue to fight terrorism and bring terrorists to justice.  After that attack, I went back to my congressional district in Maryland at that time and made three visits as a Congressman. First I visited a synagogue and prayed with the community. Then I visited a mosque and prayed with the community. Then I went to a church and prayed with the community. My message was clear on that day: We all needed to join together as a nation to condemn the terrorist attacks and to take all necessary measures to eliminate safe havens for terrorists and bring them to justice. We all stood together on that day regardless of our background or personal beliefs.  But my other message was equally important: We cannot allow the events of September 11 to demonize a particular community, religion, or creed. Such actions of McCarthyism harken back to darker days in our history. National security concerns were used inappropriately and led to 120,000 Japanese-Americans being stripped of their property and rights and placed in internment camps in 1942, though not a single act of espionage was ever established.  The United States should not carry out a crusade against any particular religion as a response to 9/11 or other terrorist attacks. The United States will not tolerate hate crimes against any group, regardless of their religion or ethnicity, and we should not allow our institutions, including Congress, to be used to foment intolerance and injustice. Let's come together as a nation and move forward in a more constructive and hopeful manner.

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